Howdy all,
We’ve had discussions in the past about licensing, and there are some themes that have come up quite a bit. With the new website (launching in the next few days, based on how much work I have to do on evolving the license manager and shopping cart setup) we’ll be in a technical position to implement most of the most requested ideas…but, it would lead to overwhelming complexity to implement all of them while keeping the current licensing model and pricing.
Eric and I have been talking a bunch about it lately, and it struck me that it would be best to get you all involved in the conversation, because in the end, you’re the folks who will decide whether these changes will be successful or not.
Some things that have come up in discussions, either between Eric and I, or with customers:
- Monthly subscriptions. This is, by far, the most requested licensing method. So much so that I considered it a mandatory feature of the new site. So we’ll definitely have a monthly subscription option for all of our products, no matter what else we decide to do.
- A lower cost, lower end license. This one is tricky. We already find that we have to spend more time/money supporting our lowest priced licenses, since those users tend to be new to web hosting, and they’re often not actually profitable. It’s an interesting challenge.
- Unified renewal pricing. This one may be controversial, but I think it is a good direction. Right now, the purchase price of Virtualmin is much higher than the renewal price. This doesn’t necessarily reflect the reality of ongoing development and support costs, which don’t really go down over time, and might discourage people from buying Virtualmin for the first time. This would bring initial price down, but renewal cost would go up
- Finally, and this one will likely be controversial, as well, we are considering switching completely to monthly subscriptions and removing annual purchase options. I think I’d most like to hear from folks about this one, because I have (in the past) felt strongly about companies switching from annual pricing to monthly. It bugged me in the past, but mostly when it meant prices were actually going up a bunch (as in the case of Adobe’s recent move to subscription based pricing, which dramatically increased the cost for most folks). In this case, I don’t think (I hope) we would need to really raise prices to go this route. The total cost of ownership wouldn’t change much, but would be spread out more evenly across the life of the server. Once again, because this is, by far, the most requested feature for our shop and license manager, I’m beginning to think it should be the only way we sell licenses.
Keep in mind that we’d like to simplify the shopping experience as much as possible, rather than simply adding every option that everyone has ever asked for; we simply can’t do all of them, and I think the best option is to choose one of them. Nobody benefits from confusion. And, to be frank, in order to sustain development, we need to increase revenue going forward without increasing our costs, so lowering prices dramatically probably won’t work unless we also reduce how much we spend on support and development costs. Our current revenue simply isn’t supporting costs at the moment; things have to change, or we’ll have to scale back our ambitions for Virtualmin and Cloudmin.
Perhaps I can put it in concrete terms:
If you were planning to buy a Virtualmin 10 license, which option would you prefer, from among the following?
- Pay $99 up front, and renew at $45 each year (This is the current way licensing is priced)
- Pay $75 up front, and renew at $75 each year
- Pay $7/month recurring, for as long as you use the license
As always, upgrading to a new license would cost the license difference, regardless of how the license terms end up; you’ll never be penalized for buying the smallest license that meets your needs today.
So, what do y’all think? What’s the easiest way to pay for Virtualmin you can imagine? Do you hate the idea of any changes? Do you love the idea of monthly subscriptions so much you’ve been waiting for it before you buy? Do you think we should scrap Virtualmin Pro and go get real jobs and work on this stuff in our free time as a hobby?
Thanks for any feedback. I know y’all have some strongly held opinions, as we’ve heard’em for years. Now we’ve got the chance to make something happen on this front. The question is, which path do we take?
Cheers,
Joe