Pay Once, Own Forever: How Jason Fried and 37 Signals is Challenging SaaS with the 'Once' Model
Aug 1, 2024
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Jason Fried, CEO of 37 Signals, discusses his company's bold challenge to the traditional SaaS model with their innovative 'Once' family of products. He highlights how customers can buy software once and own it forever, moving away from ongoing subscriptions. The conversation covers the relaunch of Campfire and the introduction of Writebook, emphasizing user ownership and customization opportunities. Fried also shares insights on software pricing, business viability, and the joy of offering free products, encouraging a rethink of conventional software models.
Jason Fried advocates for the 'pay once, own forever' model, challenging the SaaS paradigm by emphasizing user ownership and self-hosting of software.
The revival of Campfire and introduction of Write Book illustrate 37 Signals’ commitment to providing affordable, user-centered software solutions without ongoing fees.
Deep dives
Rethinking Software Ownership
The discussion highlights a significant shift in software purchasing models, moving from a subscription-based approach to one where users pay once and own the software indefinitely. This model emerged as a response to the overwhelming reliance on subscription services, where users are tied to continuous payments and lack control over their software. Jason Fried emphasizes that the new model allows users to host and modify the software themselves, thus regaining ownership similar to traditional software packages. This represents a return to simpler, more user-centered software solutions.
The Launch of Campfire
Fried talks about the revival of Campfire, a product originally introduced in 2006, as part of the Once family of products, which allow users to pay a single price and own the software. The decision to bring back Campfire was partly inspired by the high costs associated with competing chat tools like Slack, which prompted Fried and his team to rethink the chat software market. They recognized that with many chat solutions being commodities, they could offer a more affordable alternative that emphasizes ownership. Campfire provides users a self-hosted solution for a one-time payment, allowing them to modify and personalize it as needed.
Explore Innovative Business Models
Fried’s philosophy encourages exploring unconventional business models beyond the typical SaaS structure, stressing that not every software product needs to follow the subscription routine. He discusses the importance of companies evaluating their economic viability and considering creative pricing structures, as financial sustainability is crucial for survival. A notable example presented is the idea of a 'pay once' model that returns ownership to customers, allowing them to host and control their software without ongoing fees. This approach challenges the prevailing norm and encourages businesses to consider alternative options for lasting value.
The Role of Write Book
In addition to Campfire, the episode introduces Write Book, a new offering from 37signals that enables easy publication of online books and resources. Initially planned to be a paid tool, the decision to make Write Book free was influenced by a desire to encourage more online publishing and bolster user confidence in handling self-hosted software. This product serves as a testament to the value of making useful technology accessible to everyone without a financial barrier. Fried emphasizes the importance of contributing to the broader community, as sharing valuable tools for free is seen as a luxury that 37signals can afford.
In this eye-opening episode, Mike Belsito sits down with Jason Fried, CEO of 37 Signals, to discuss their revolutionary "Once" family of products. Fried explains how 37 Signals is challenging the dominant SaaS model by reviving the concept of paying once to own software forever. The conversation includes the (re-)launch of Campfire, a group chat tool, and Writebook, a simple online book publishing platform, both offered under this unique model of "you host it, you own it."
Listeners will gain insights into the rationale behind this bold move, including the technical challenges of self-hosted software and the potential for customers to modify and build upon the products they purchase. Fried also shares his thoughts on software pricing, the importance of business viability, and the luxury of offering free products. This episode is a must-listen for anyone interested in alternative business models and the future of software distribution.
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