One Time's the Charm

Today's featured startup thinks it's time to leave SaaS behind.

Mar 19, 2025

Project Overview

ONCE isn’t a startup per se — it’s a new initiative by 37signals, the company behind one of the first SaaS platforms, the project management tool Basecamp. As they put it:

This is the core idea behind ONCE, presented in the form of a manifesto.

Something went wrong with business software. It used to be simple—you’d buy it once, install it, and use it as long as you wanted. You actually owned the software.

Now, software isn’t something you buy—it’s something you rent. Every month, you pay for the same thing you paid for last month. And if you stop paying, your access is revoked, and your data disappears.

If you add up all the money spent on subscriptions, you’ve likely paid enough to own the software outright.

The SaaS model, where software runs in the cloud, was convenient—mainly because managing your own servers used to be complicated. But today, setting up a personal server is much easier, and companies concerned with data security are already doing it. Even without security concerns, cloud hosting services offer affordable, easy-to-manage server options.

That’s why 37signals launching ONCE — a completely new line of business software:

You pay once and receive software you can install on your own server—whether it’s self-hosted or rented from a cloud provider. Installation requires just a single command.
You get access to the source code, meaning full transparency—no hidden tracking, and the freedom to modify it as needed.

The first product in the ONCE lineup is Campfire, a corporate chat platform similar to Slack or Teams.

Campfire can serve as a company’s main communication hub, but it also has alternative uses:

A backup communication platform in case Slack or Teams experience downtime.
A separate, secure chat for executives or board members—an isolated platform ensures maximum security.
A temporary chat for events like conferences, corporate gatherings, or meetings.

For up to 250 users, Campfire requires just a server with 2GB RAM and a single processor. Scaling to 5,000 users? You’ll need 32GB RAM and a 16-core processor.

But here’s the catch—the price doesn’t change based on user count! The only factor is the server capacity that you choose.

Each purchased license covers one domain.

There’s no standalone mobile app, but Campfire is optimized for mobile web and runs as a Progressive Web App (PWA) in your browser.

The license includes basic tech support, though we won’t troubleshoot complex issues caused by custom modifications or unusual setups. That said, SaaS users don’t get much better support anyway.

Software updates install automatically by default, though you can enable manual updates or skip them entirely. A single license covers free updates within a version cycle (e.g., 1.0 to 1.1). Major upgrades (e.g., 1.9 to 2.0) may require an additional fee—but they’re optional.

The price? A one-time payment of $299.

What’s the Gist?

If the software requires self-hosting, why not just use open-source alternatives that are completely free?

Well, it’s not that simple. Open-source developers often push users toward paid plans for advanced features.

For example, Mattermost, a well-known open-source alternative to Campfire, charges $10 per user per month—even for self-hosted deployments.

Campfire, on the other hand, costs a flat $299 with no user limits. The only additional cost is hosting, which is far cheaper than $10 per user—especially when a small server can handle 250 users.

One-time software purchases still exist, even among major players. Microsoft, for instance, sells Office 2021 for $149.99 alongside its subscription model. They plan to release Office 2024 with a similar one-time payment option, expected to cost about 10% more.

Lifetime licenses often cost the equivalent of a year or two of subscription fees. ThriveCart, an e-commerce optimization tool, sells a lifetime license for $495—about six months' worth of subscription fees ($95 per month).

At $299, Campfire’s lifetime license falls in the same range—about six months' worth of subscription payments for similar services.

It might seem unwise to charge only six months’ worth of fees when companies could theoretically pay for years. But developers aren’t operating at a loss.

Looking at SaaS churn rates:

A 2.5–5% monthly churn rate is considered “good” for B2B SaaS targeting small and medium businesses.
Many B2B SaaS providers struggle to get churn below 10%.
On average, SaaS customers stick around for about a year.

The highest churn happens in the first few months. A typical retention curve shows that in the first five months, 50% of paying customers drop off.

By charging an upfront fee equivalent to six months of subscription costs, a company isn’t losing out—if anything, they’re making more. If more than half of new customers churn within a few months, the upfront model ensures immediate revenue without the risks of failed payments, billing complications, or waiting months to break even.

For the customer, it feels like a great deal—pay once and avoid lifetime monthly fees. From their perspective, they’d be paying forever anyway, as their team grows and costs increase.

In reality, only a minority of businesses will stick around long-term. Those that do will likely pay for major upgrades over time, ensuring continued revenue for the developer.

Key Takeaways

Surprisingly, a one-time payment model can be quite effective—especially for services with high early churn rates.

It can even be framed as a user-friendly move, making marketing and customer acquisition easier against traditional subscription-based competitors.

A common concern is sustainability—how will developers continue earning if they collect payments upfront? The answer: new businesses form every year. In the U.S. alone, 5.5 million new companies are registered annually—more than enough to sustain a steady flow of new customers.

This raises an interesting question: should other SaaS businesses consider switching to an upfront payment model?

It’s worth evaluating:

Which competitors could you challenge by offering one-time payments instead of subscriptions?
What would you gain or lose by making the switch?
Could this model be more profitable than subscriptions?
How would you convince users that a one-time payment is a better deal than monthly fees?

The right positioning could make a major impact—turning a simple pricing shift into a competitive advantage.