SaaS & Software Archives - FastSpring eCommerce Solutions for the Digital Economy Thu, 02 Apr 2026 14:57:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 6 Proven Strategies for APAC Companies to Successfully Enter Western Markets https://fastspring.com/blog/6-strategies-apac-companies-western-markets/ Thu, 02 Apr 2026 14:57:41 +0000 https://fastspring.com/?p=31237 For APAC-based SaaS and digital goods companies — from Singapore’s fintech hubs, to India’s rapid-growth AI startups, to South Korea’s gaming giants — the U.S. and Europe represent more than just new territory: They present opportunities for a significant jump in revenue and long-term retention.  However, many founders quickly discover that the biggest hurdle to […]

The post 6 Proven Strategies for APAC Companies to Successfully Enter Western Markets appeared first on FastSpring.

]]>
For APAC-based SaaS and digital goods companies — from Singapore’s fintech hubs, to India’s rapid-growth AI startups, to South Korea’s gaming giants — the U.S. and Europe represent more than just new territory: They present opportunities for a significant jump in revenue and long-term retention. 

However, many founders quickly discover that the biggest hurdle to global growth isn’t product-market fit — it’s the structural drag of an entirely different set of Western administrative and regulatory requirements.

Companies are often caught off guard by the technical requirements and administrative realities. Moving into the West is not just about switching currencies; it’s a fundamental shift in how you manage your customer lifecycle and your business’s legal footprint.

Every new market demands its own web of legal entities, localized contracts, domestic banking, and tax registrations. That means that a lean, engineering-led startup can quickly become bogged down in legal and finance operations.

Based on FastSpring’s own internal data and our experience helping thousands of sellers scale, here are six proven strategies to navigate the high-stakes transition from APAC into Western markets.

FastSpring is how companies in APAC enter the western market online and in more places around the world. We handle every payment need — from subscription management to tax collection, remittance, and more — so your business can go farther, faster. We’re also the leading merchant of record for global software companies, powering over a billion dollars in worldwide transactions every year. We’ll manage your checkout, VAT and sales taxes, compliance, and more, freeing you to focus on what you do best: building great software. Set up a demo or try it out for yourself.

1. Leverage the Merchant of Record (MoR) Model

Selecting the right financial architecture is the most critical decision an APAC seller can make when selling beyond their home region. For many, the merchant of record (MoR) model provides a shortcut through the bureaucratic hurdles that typically accompany international growth. The MoR serves as the legal entity responsible for every transaction, allowing your team to focus on the product experience while the MoR handles the heavy lifting of global commerce.

  • Immediate Market Entry: An MoR eliminates the need for APAC companies to establish local legal entities in the U.S. or Europe, enabling global expansion in days rather than months. Entity setup is not just a one-time cost — it creates ongoing legal, financial, and operational overhead.
  • Compliance Outsourcing: The MoR handles the calculation, collection, and remittance of sales taxes and VAT, and it assumes the risk for fraud and chargebacks. And while taxes are very important, this is also critical  for companies using traditional PSPs, because it is just one part of a much bigger operational burden.

2. Meet Digital Goods Regulations in Europe

Europe has moved aggressively to standardize the digital economy, introducing frameworks that require absolute precision in data handling and tax reporting. Navigating these rules requires a proactive approach to ensure your checkout process remains both compliant and conversion-friendly. 

The following recent and ongoing mandates represent a hard line for international sellers, where universal requirements have replaced previous exemptions for smaller companies. 

  • VAT in the Digital Age (ViDA): As of Jan. 1, 2025, previous VAT registration thresholds have been eliminated. Every B2C digital sale, no matter how small, is now a taxable event that must be reported through the One Stop Shop (OSS) system.
  • The EU Data Act: Starting in September 2025, European customers have a “cancel anytime” right for cloud services, allowing them to terminate contracts with two months’ notice regardless of legacy terms. Providers must also ensure data portability, and by early 2027, all “switching fees” will be prohibited.
  • Privacy as a Trust Factor: Beyond legal mandates such as GDPR, 2026 marks a shift toward “Privacy by Design.” Western buyers increasingly treat data transparency as a competitive requirement, so showing clear, auditable trails for data residency and automated decision-making is no longer just a legal hurdle but a primary driver of customer trust.

3. Navigate US Tax and Subscription Enforcement

The United States market is currently defined by complex state and federal regulations. Success in the U.S. requires a keen eye on shifting state legislation and a commitment to clear, accessible user terms that protect your business from regulatory scrutiny. 

Balancing these local tax obligations with federal consumer protection rules is essential for any APAC brand looking to establish a long-term presence.

  • The Nexus Maze: Many U.S. states now impose sales tax on digital downloads and SaaS. For example, starting July 1, 2025, Maryland enacted a 3% sales tax specifically on technology services.
  • Subscription Transparency: The FTC continues to aggressively enforce subscription transparency under the Restore Online Shoppers’ Confidence Act (ROSCA). Companies must offer simple, accessible cancellation options and clear disclosures about auto-renewal terms or risk significant penalties.
  • Data Minimization: In line with the FTC’s focus on consumer protection, Western brands are shifting toward “data minimization”: the practice of only collecting what is strictly necessary. For APAC companies accustomed to data-rich “super-app” models, adopting a lean data approach is essential to avoid the multi-million-dollar settlements that are common under U.S. state privacy laws such as California’s CCPA.

4. Bridge the Gap Between Design and UX

APAC and Western customers often operate on different visual logic. While many high-growth Asian interfaces thrive on information density (such as surfacing multiple options, promotions, and data points all at once to show value), Western users typically favor minimalism and progressive disclosure. In the U.S. and EU, consumers don’t view a cluttered UI as feature-rich; instead, they perceive it as overwhelming and even spammy.

Here are a few tips on how to design for these audiences as you expand your business:

  • Design for Focus, Not Completeness: Western SaaS buyers prioritize speed and ease. They expect a clean, minimalist layout with a single, clear call-to-action (CTA). In Western markets, whitespace is a functional tool for guiding the eye; removing it can lead to higher bounce rates.
  • The Trust of Transparency: While APAC buyers often build trust through multi-sensory engagement, Western buyers build trust through visual clarity. This includes clear typography, a subdued color palette (moving away from high-energy reds and golds), and a direct, step-by-step onboarding flow that reveals features only as needed.
  • Actionable Adjustment: Audit your marketing site and product dashboard for visual noise. Shift from a high-density, all-in-one layout to a streamlined experience that highlights one specific outcome at a time. This reduces the mental effort required for a Western buyer to say “yes” to your product.

5. Optimize Payment Performance and Risk

Cross-border payment performance is a silent variable that can either accelerate your growth or quietly drain your revenue through high decline rates. Friction at the point of purchase is often the result of poorly localized payment methods, or of inadequate fraud management that flags legitimate international buyers. 

For APAC companies, the most significant hurdle is often infrastructure: transitioning from a region where digital wallets and real-time payments are the primary engine of commerce to Western markets that remain deeply rooted in one-click payment systems.

  • Local Optimization: Adding local payment methods (such as iDEAL in the Netherlands) can increase checkout conversion rates by up to 30%. Successful brands use dynamic checkouts that automatically detect a user’s location to display relevant currencies and billing frequencies.
  • Managing Risk: Fraud and risk are harder to manage internationally. For example, while India’s UPI transactions are generally irreversible, Western credit cards offer robust consumer protections that make disputes easy. Utilizing an MoR can help mitigate this by assuming the legal and financial risk for fraud and chargebacks, protecting your bottom line from the volatility of international payment disputes.

6. Implement Advanced Pricing Strategies

Simply converting your home-market pricing into USD or EUR is rarely a winning strategy. To truly capture the market, APAC brands must adopt sophisticated pricing models that reflect the actual purchasing power and billing expectations of Western customers. These adjustments aren’t just cosmetic — they’re data-backed methods for increasing the lifetime value of every user you acquire.

  • Purchasing Power Parity (PPP): Universal pricing often fails. SaaS companies that implement PPP-adjusted pricing — reflecting local economic conditions — see up to 18% higher growth rates and 25% higher revenue per customer.
  • Annual vs. Monthly Billing: While monthly retention in Asia often hovers around 75% compared to 85%+ in the West, annual subscription retention is nearly identical globally. Understanding how customers like to buy (e.g., promoting annual plans) can help stabilize revenue and offset higher Western acquisition costs.

Scale Efficiently With FastSpring

Global expansion can get expensive quickly when each new market adds more internal complexity. FastSpring handles the global checkout, tax management, and regulatory compliance so you can focus on building your SaaS or software business rather than managing administrative overhead.

Ready to scale your SaaS beyond borders? Schedule a demo today.

The post 6 Proven Strategies for APAC Companies to Successfully Enter Western Markets appeared first on FastSpring.

]]>
Headache-Free Global Growth: The Enterprise Guide to Merchant of Record https://fastspring.com/blog/enterprise-guide-to-mor/ Thu, 19 Mar 2026 12:57:00 +0000 https://fastspring.com/?p=31182 In 2026, the global SaaS market is projected to reach $465 billion by Precedence Research, and large enterprises accounted for a staggering 62% of SaaS revenue in 2025.  Yet, there is conversation in the market that enterprise SaaS growth is beginning to slow. Finding new ways to grow can be especially hard for large companies […]

The post Headache-Free Global Growth: The Enterprise Guide to Merchant of Record appeared first on FastSpring.

]]>
In 2026, the global SaaS market is projected to reach $465 billion by Precedence Research, and large enterprises accounted for a staggering 62% of SaaS revenue in 2025. 

Yet, there is conversation in the market that enterprise SaaS growth is beginning to slow. Finding new ways to grow can be especially hard for large companies that already have many subscribers, or which are chasing growth through new subscription services in addition to their usual offerings. 

The big question remains: How do you overcome the complex financial and technical hurdles of doing business globally? 

Spoiler alert: Global enterprise growth has an “easy button” with a merchant of record. Let’s take a look at how this powerful payment platform model solves enterprise-grade headaches.

FastSpring is how Enterprise game companies sell online in more places around the world. We handle every payment need — from subscription management to tax collection, remittance, and more — so your business can go farther, faster. We’re also the leading merchant of record for global software companies, powering over a billion dollars in worldwide transactions every year. We’ll manage your checkout, VAT and sales taxes, compliance, and more, freeing you to focus on what you do best: building great software. Set up a demo or try it out for yourself.

Enterprise Global Expansion = High Stakes, Higher Friction

Enterprise leaders currently face three primary challenges that prevent them from capturing international market share:

  1. High Investment and High Risk in Emerging Markets: You know the opportunity is massive, but the investment required to build local entities, hire tax experts, and establish banking relationships is astronomically high. While North America remains the largest market, Asia-Pacific is now the fastest-growing region globally, with a 24.6% CAGR in virtual fitness as an example. Effectively capturing new users in this space requires native options for buyers or local entities, but the risk of getting it wrong in a regulated market often stalls expansion plans before they begin.
  2. The Architecture Gap: You need an enterprise-grade payment architecture that is resilient, localized, and compliant. However, correctly building all of that takes significant time, money, and specialized experience. Most organizations try to solve this with a domestic-only infrastructure, resulting in the “entity gap”: a state in which your regional web traffic is ready to buy, but sales can’t proceed because you don’t support local payment methods or don’t have local entities, leading to high cross-border decline rates.
  3. The Need for Flexibility: You want the ability to adjust your rollout based on real-time data without incurring unexpected costs or risk. Traditionally, capturing 100% of market potential in regions such as India, Brazil, or Indonesia has required permanent local subsidiaries, which take years to establish. But you need the flexibility to test markets without being locked into analog-era banking setups that make it difficult to pivot.

These challenges can make it exceedingly complex or slow to expand into new global markets, even for well-established enterprise SaaS companies.

So What Is a Merchant of Record (MoR)?

Simply put, a merchant of record is a service provider that acts as your software’s reseller. While you maintain the brand experience and customer relationship, the MoR assumes the majority of the liability for the transaction.

The MoR model allows a company to “go live tomorrow.” Because the MoR already holds local entities and tax registrations across 200+ regions, you can leverage its infrastructure as your own. This is the strategic solution to the entity gap. For global enterprises, the barrier to international revenue is rarely a lack of demand — it’s the infrastructure.

Why Do Traditional Payment Providers Fail at Scale?

Most enterprises start with a standard payment service provider (PSP) such as Stripe, PayPal, or Square. However, as you expand into multiple regions (some with complex tax rules and regulations), the limitations of a PSP create a revenue ceiling:

  • Missed Opportunities: It’s common for global leaders to see significant web traffic from regions like India or Mexico, only to find they can’t process a single transaction because they lack a local legal entity. One FastSpring customer was losing 20% of web traffic in India before implementing an MoR that accepted local payment methods, which are otherwise inaccessible without a local entity.
  • Unnecessary Discounts: When internal infrastructure can’t support global growth, teams look for scrappy, alternative growth tactics that provide a quick revenue boost but which don’t maintain profit margins over the long term. A merchant of record provides a sustainable alternative to this by making it easy to unlock untapped revenue in new territories rather than slashing prices in existing markets.
  • Administrative Burden: When your expansion plans reach your tax and legal departments, they’re often vetoed due to the complexity of managing local taxes and varying economic nexus laws (nexus is the defined threshold for tax liability on sales). 
  • Tax Law Fragmentation: Beyond tax calculation, enterprises struggle with data fragmentation. A fragmented payment setup creates a reconciliation nightmare, where transaction data lives in silos. A robust MoR provides a single source of truth, ensuring that every transaction — regardless of currency or country — carries a consistent data schema that meets global KYC (Know Your Customer) and AML (Anti-Money Laundering) standards.

How to Scale With Speed and Flexibility

Every large company fears the need to “rip and replace” an existing infrastructure, even if that means sticking with a solution that’s not meeting their needs. Modern MoR solutions such as FastSpring address this through something called “headless deployment.” Let’s look at an example.

Avid, a leader in creative software, needed a global online payments solution that would leverage its recent investment in a new composable commerce stack. By implementing FastSpring as its MoR, they didn’t have to abandon their existing proprietary subscription engines or dunning logic. Instead:

  • Avid managed the customer experience, subscriptions, and dunning.
  • They layered FastSpring on top to manage the back-end: global payments, tax collection, and compliance.
  • They went live in just three weeks and saw 4% of transactions come in through newly added payment options such as Apple Pay and Google Pay, which supports long-term retention through buyer-friendly payment methods. 

This headless approach is critical for organizations using middleware platforms for orchestration and entitlements. Instead of a brittle, hard-coded integration, an enterprise-grade MoR uses webhooks and robust APIs to push real-time transaction data into your data lake or BI tools (like Snowflake or Tableau). This enables real-time revenue recognition, a necessity for both public companies and those preparing for an exit.

That’s how you scale without friction.

Even Your Back-Office Team Will Rejoice

Internal tax and finance teams are often the strongest skeptics regarding global expansion. An MoR turns these skeptics into advocates by providing:

  • Liability Offloading: The MoR is responsible for calculating, collecting, and remitting all global taxes. If you get audited in Indonesia, the MoR handles it — not your internal team.
  • One Report to Rule Them All: Instead of reconciling thousands of transactions across dozens of currencies and banks, your finance team receives a single, consolidated payment and a clean data set.
  • ERP Integration: Leading MoR solutions such as FastSpring provide data that flows seamlessly into SAP Commerce, S/4HANA, and other enterprise backends, ensuring the cycles of planning, execution, and analysis are always data-driven and efficient.

This isn’t just about a CSV export — it’s about automated GL mapping. Leading MoR solutions allow you to map transaction types directly to your internal chart of accounts (COA). This turns a week-long, manual month-end close into an automated process, reducing human error and ensuring that your ERP sub-ledgers are always in sync with your actual cash flow.

Lessons From the Field: Navigating LATAM and APAC

Enterprise expansion often fails in these regions due to the infrastructure barrier. According to a Baymard study, businesses that enable regionally preferred payment methods see 21% higher growth rates than those that don’t.

Treating a Brazilian or Indian transaction as “cross-border” by routing it through a U.S. or EU bank is a recipe for involuntary churn. For a local bank, a foreign-processed transaction poses a security risk, leading to higher decline rates.

With an MoR as your local legal entity, the transaction stays “in-country.” This shift doesn’t just lower fees; it fundamentally stabilizes your leaky funnel by ensuring valid customers aren’t blocked by banking security flags.

Similarly, forcing a mobile-first economy into a credit-card-only checkout creates another barrier. While credit cards dominate the West, they are the exception in high-growth regions. 

In India for example, credit card penetration is under 5%, while UPI (Unified Payments Interface) accounts for over 75% of digital retail transactions. Similarly, in Brazil, Pix has surpassed 150 million users. It’s not necessarily about having more payment methods; it’s about having the right ones.

Bridging the Entity Gap for Global Growth

The transition from a domestic success story to a global enterprise powerhouse is no longer a matter of simply “turning on” new regions. For the modern SaaS leader, the merchant of record model is more than a compliance shortcut — it’s a strategic lever for revenue operations. It represents the end of the entity gap, allowing your organization to:

  • Reclaim Lost Revenue: Stop losing 20% or more of your international traffic to avoidable cross-border declines.
  • Decouple Growth from Headcount: Scale into 200+ countries without hiring a team of tax experts or managing dozens of local entities.
  • Empower the Back Office: Transform your finance and tax departments by offloading the liability and complexity of global nexus and tax laws.

Global expansion in 2026 isn’t about being present in every market — it’s about being native to every market. By partnering with an MoR like FastSpring, you ensure that your infrastructure is as agile as your code.

The demand is there. The customers are ready. It’s time to close the gap.

You built the software. Let FastSpring build your global payments strategy.

FastSpring is how Enterprise companies sell online in more places around the world. We handle every payment need — from subscription management to tax collection, remittance, and more — so your business can go farther, faster. We’re also the leading merchant of record for global software companies, powering over a billion dollars in worldwide transactions every year. We’ll manage your checkout, VAT and sales taxes, compliance, and more, freeing you to focus on what you do best: building great software.

Ready to try FastSpring? Set up a demo or try it out for yourself.

The post Headache-Free Global Growth: The Enterprise Guide to Merchant of Record appeared first on FastSpring.

]]>
4 Mistakes LATAM SaaS Companies Make When Selling Abroad — and How to Overcome Them https://fastspring.com/blog/4-mistakes-selling-abroad-latam/ Fri, 16 Jan 2026 18:52:34 +0000 https://fastspring.com/?p=31055 Scaling your LATAM SaaS globally? Avoid tax traps and payment friction. Discover 4 common mistakes founders make when selling abroad and how to overcome them.

The post 4 Mistakes LATAM SaaS Companies Make When Selling Abroad — and How to Overcome Them appeared first on FastSpring.

]]>
You’ve conquered your home market. Whether your company is based in São Paulo or Mexico City, you’ve optimized your product-market fit, built a loyal user base, and mastered the local payment landscape. You know exactly when to offer Pix or Mercado Pago to drive conversions.

Now, you’re looking outward. The goal is no longer just regional dominance; it is global expansion.

But selling software to a customer in Texas or Berlin is fundamentally different from selling to one in Rio. Many high-growth LATAM founders fall into the trap of thinking global expansion is just a matter of translating their website and adding a few currency options.

The reality is that once you cross borders, the rules of the game change completely. You’re suddenly exposed to a tangled web of tax liabilities, cross-border payment friction, and operational headaches that can stifle your growth before it truly begins.

Here are the four hidden barriers to global scaling — and how savvy founders overcome them.

1. The Tax Trap

A common misconception among international founders is that your company’s location determines your tax liability. You might think, “”I’m a Brazilian company, so I follow Brazilian tax laws.”

Unfortunately, in the world of digital product sales, tax obligations are almost always determined by where your customer sits, not where you sit.

Here are just a few common examples:

  • The U.S. Nexus Maze: If you sell to buyers in the United States, you aren’t just dealing with “U.S. tax.” You’re dealing with economic nexus. Nexus is the legal status you reach when you cross a specific sales threshold. Once you sell more than that amount in a jurisdiction, you must start collecting its local taxes. With rules varying by state, county, and even city, you could find yourself owing taxes in 50+ different jurisdictions, each with its own rates and filing requirements.
  • The VAT Burden: Similarly, if you sell into the European Union, you are responsible for collecting Value-Added Tax (VAT) at the buyer’s country’s rate (e.g., 19% in Germany vs. 20% in France) and remitting it to the local authorities.

For a growing finance team, international taxes can be an administrative nightmare. You’re forced to either hire expensive international tax firms or risk audits and fines that could cripple your business.

2. The Payments Paradox

When you expanded within LATAM, you learned that offering trusted local methods like Pix or Mercado Pago was critical to regional success. It’s tempting to apply the same logic globally by adding every possible payment option to your checkout page.

However, an overwhelming number of payment methods can actually backfire, creating decision fatigue or even confusion — which lowers conversion rates.

A customer in the Netherlands wants to see iDEAL. A customer in the U.S. expects credit cards or Apple Pay. If a German buyer lands on your checkout and sees a list of irrelevant options intended for Brazilian or American shoppers, trust erodes immediately.

You don’t need more payment methods; you need a dynamic checkout experience — a system that automatically detects a user’s location and device and displays only the currencies and payment methods relevant to them.

3. The Leaky Funnel

It’s natural to assume that a conversion occurs when a customer clicks “Buy.” In reality, cross-border sales face hidden obstacles that silently kill conversions and erode margins.

First, you face false declines caused by a lack of local acquiring.

  • What Is Local Acquiring? It’s the ability to process a payment through a bank in the buyer’s own country. Without it, your transaction looks “foreign” to the buyer’s bank, triggering security flags and declining valid customers. This creates involuntary churn: Your product works, the customer wants to pay, but the banking infrastructure rejects them.

Second, you face value erosion.

  • What Is Value Erosion? Even when payments succeed, standard payment service providers (PSPs) often apply high foreign exchange (FX) fees on every transaction. You might be making the sale, but you aren’t capturing the full value of the revenue.

4. The Finance Burden

Selling globally is exciting for the sales team, but without a unified platform, it creates a resource drain on your back office.

The core problem is fragmentation.

  • What Is Fragmentation? If you sell in USD, EUR, GBP, and JPY using standard PSPs, your finance team is forced to reconcile multiple merchant accounts, inconsistent report formats, and varying settlement dates.

What should be a simple month-end close turns into weeks of spreadsheet wrangling to consolidate data. This operational debt scales with your growth — the more you sell, the harder it becomes to report on it.

The Solution: A Merchant of Record

The do-it-yourself approach to global sales — piecing together a PSP like Stripe with third-party tax tools and fraud plugins — often leads to a bloated total cost of ownership.

This is why high-growth SaaS companies partner with a merchant of record (MoR) like FastSpring.

When you sell through FastSpring, we become the legal seller of the product. This shift offers three critical advantages:

  1. Immediate Tax Compliance: We handle the calculation, collection, and remittance of taxes in more than 240 countries worldwide, including all U.S. tax jurisdictions. You don’t need to register your business in Berlin or Texas; we are already there.
  2. Higher Approval Rates: Because FastSpring processes payments locally in major regions, we see significantly higher authorization rates than standard PSPs. We also manage dunning behind the scenes to recover revenue that would otherwise be lost to churn.
  3. One Wire, One Report: You can sell in 20+ currencies to maximize conversion, but FastSpring converts and remits a single, clean transfer to your bank account. We absorb the complexity so you can focus on your product and your business’ growth.

Go Global Without the Headaches: Partner With FastSpring

You’ve built a world-class product in LATAM. Don’t let the complexity of global bureaucracy slow you down.

By partnering with FastSpring, you gain a liability shield against tax risk and fraud, while delivering a seamless, localized experience to buyers anywhere in the world.

Ready to scale your SaaS beyond borders? Schedule a demo today and let us handle the complexity.

The post 4 Mistakes LATAM SaaS Companies Make When Selling Abroad — and How to Overcome Them appeared first on FastSpring.

]]>
Chargebee Alternatives in 2025: 10 Competitors and How They Differ https://fastspring.com/blog/chargebee-alternatives/ Fri, 31 Oct 2025 01:59:06 +0000 https://fastspringstg.wpengine.com/?p=26948 We compare 10 Chargebee alternatives, from payment processors to subscription management software, and we explain why a merchant of record like FastSpring is a great choice.

The post Chargebee Alternatives in 2025: 10 Competitors and How They Differ appeared first on FastSpring.

]]>
Key Takeaways About Chargebee Alternatives

  • Chargebee offers a number of subscription management features, but their customers are still responsible for handling key tasks like connecting to payment gateways, taxes, payment reconciliation, and chargebacks.
  • As your merchant of record (MoR), FastSpring takes on the responsibility for these tasks, including payment processing, remitting taxes across jurisdictions, and more.
  • Other Chargebee alternatives include Stripe, Maxio, Zoho Billing, Stax Bill, Zuora, Sticky.io, PayPal Enterprise Payments, Recurly, and Paddle.

Chargebee is a robust subscription management platform —  and if you’re looking for Chargebee alternatives, you’re likely already aware of many of its key features.

However, there are certain aspects of collecting recurring payments that you would still be responsible for when using Chargebee, such as:

  • Connecting to payment gateways manually. While Chargebee supports several different payment gateways, you have to set up and configure each one.
  • Remitting taxes at the end of the year. They will collect taxes for you, but you are ultimately held responsible for filing and paying taxes correctly within each jurisdiction you do business.
  • Reconciling payments, fulfillment, refunds, etc. While Chargebee lets you automate many mundane accounting tasks and integrate with account software, you still have to track and record every transaction, refund, etc.
  • Responding to and processing chargebacks. Chargebee only offers full chargeback support for limited vendors, so other vendors will need to manage chargebacks for themselves.

In this guide, we present 10 alternatives to Chargebee that help relieve some of these burdens for users, starting with an in-depth review of our solution, FastSpring. 

FastSpring handles the entire payment process from checkout to remitting end-of-year taxes for SaaS companies. To learn more about how FastSpring can help you scale quickly, sign up for a free account or request a demo today.

10 Chargebee Alternatives

  1. FastSpring.
  2. Stripe.
  3. Maxio.
  4. Zoho Billing.
  5. Stax Bill.
  6. Zuora.
  7. Sticky.io.
  8. PayPal Enterprise Payments.
  9. Recurly.
  10. Paddle.

1. FastSpring

As your merchant of record (MoR), FastSpring takes on the responsibility for payment processing, remitting taxes, and more for your software or SaaS business.

To compare, most Chargebee alternatives are either subscription billing platforms or payment gateways. 

Some of these providers may be able to help you connect to international payment gateways, alert you to chargebacks, and help you collect VAT and sales taxes. However, you’ll still be responsible for paying taxes, processing chargebacks, and for things like legal compliance, dunning, and more. 

FastSpring, on the other hand, handles everything from optimizing your checkout flow to remitting end-of-year taxes by acting as your merchant of record (MoR).

Next, we explain how an MoR is different from other payment service providers. 

What It Means to Have FastSpring as Your Merchant of Record

A merchant of record, or MoR, is the business entity that sells goods or services to the buyer. You can act as your own MoR, or you can outsource the entire process to FastSpring. Companies that haven’t thought about who their MoR is are probably acting as their own MoR.

When you outsource your transactions to FastSpring, your customers still visit your website to choose their software and/or subscription, but FastSpring takes over when the customer gets to the checkout. They’ll receive a receipt from FastSpring, and FastSpring will be listed on their bank or credit card statement.

The profits are yours, but FastSpring is the liable party for the sale.

That’s why FastSpring can do more than other types of service payment providers can:

  • Collect and remit VAT, sales taxes, and other consumption taxes.
  • Comply with local laws and regulations.
  • Monitor chargebacks in real time.
  • Reconcile transactions, payments, refunds, etc.
  • And more, all on your behalf.

If something goes wrong with local or tax compliance, chargebacks, accounts not balancing, etc., FastSpring takes the lead to solve the issue on your behalf.

Instead of juggling multiple platforms and providers for a complete payment solution, you can work with just one provider: FastSpring. 

Plus, you can start selling in 200+ jurisdictions almost instantly — because we’ve already established the necessary processes in each region. You can learn more about how FastSpring helps you with international recurring payments here.

In summary, FastSpring focuses on the selling, so you can focus on making a great product.

In the next sections, we’ll dive deeper into how FastSpring helps you: 

  • Create flexible free trials and recurring billing logic without code.
  • Minimize payment failures with advanced payment routing and smart dunning.
  • Increase conversions with branded, localized checkout.

We’ll also cover how FastSpring provides all features for one flat-rate price designed to fit your budget. 

Flexible No-Code Free Trials and Recurring Billing Logic

Not every business can use the same free trial model. Some businesses will see more success if they let customers sign up without payment details, while others will see more success if they require a payment method to sign up but don’t automatically charge the customer at the end of the trial.

Additionally, what worked for your small business to start may not be the right solution for you long term as you grow and adopt more complex billing. That’s why many software, gaming, digital product, mobile app, and SaaS companies need payment software that can support many different types of trial models, subscriptions, etc. 

However, most payment processors (sometimes interchangeably referred to as “payment gateways,” while technically being slightly different) only offer limited recurring billing and basic trial options — e.g., a free trial that automatically turns into monthly billing. This makes it difficult to optimize your trials and subscription plans for high conversions and what works best for your customers. It also makes it difficult to adapt as a business in the long run. 

FastSpring, on the other hand, delivers advanced features and a wide variety of flexible options for how you can set up trials, subscriptions, and more. Below, we provide an overview of FastSpring’s subscription management tools. 

Trial subscription options:

  • Free or paid trial periods of any length.
  • Set up free, paid, or usage-based trials.
  • Choose whether or not to require a payment method when signing up for a trial.
  • Choose to automatically bill the user after the trial has ended or let them manually start a paid subscription.
  • Allow subscribers to reactivate expired trial accounts.
  • Choose when FastSpring will send reminders of ending trials (e.g., three days before the trial ends).
  • Offer a discounted trial period.
  • Automatically detect when a single user tries to sign up for multiple trials, and only allow one trial account.
  • And more.

Recurring billing options:

  • Choose subscription frequency (weekly, monthly, yearly, or custom) and billing date (or let your customers choose).
  • Set subscriptions to auto renewal, manual renewal (i.e., customers have to re-enter payment information each time they’re billed), or managed renewal (i.e., your team initiates the charge via the API, which is great for usage-based billing).
  • Offer discounts and coupons.
  • Allow prorated billing if a customer wants to upgrade, downgrade, or pause the service part-way through the billing cycle.
  • Add one time purchases to the initial bill but not recurring billings.
  • Manage upsell and cross-sell products at checkout.
  • Give customers the option of whether or not to store payment information (or make the decision for all customers).
  • Auto-renew to a different subscription.
  • Offer subscription add-ons.
  • And more.

Fulfillment options:

  • Choose whether to share products and resources via a license key, product download, signed PDF, or email.
  • Configure multiple fulfillment actions for one subscription (e.g., send a license key and product manual PDF via email).

FastSpring also provides your customers with an easy-to-access self-serve Customer Account Portal, where they can view their entire order history; upgrade, downgrade, or pause their subscriptions; and add or edit payment methods.

This self-serve portal is entirely managed by FastSpring but reflects the visual branding of your checkout for a cohesive and user-friendly interface and customer experience. 

Finally, some subscription management tools require a lot of technical skills to set up and use. 

But with ease of use in mind, FastSpring lets you set up many of the options mentioned above without code. If you have unique subscription management needs, you can also use our API and webhooks library for more control — our experienced developers are readily available to help you create the best solution for your subscription business model.

Don’t forget: Rules around recurring billing vary across the globe. Without a global MoR like FastSpring, it’s your responsibility to keep track of current and evolving local transaction laws and regulations and ensure your recurring billing model complies.

FastSpring handles this — and the liability for recurring transactions — for you.

Note: If you already have multiple subscriptions set up in another platform, we can help you easily migrate over to FastSpring. For subscription data migration with payment information included, click here for more info. For subscription data migration without payment information, click here for more info.

Advanced Payment Routing and Smart Dunning to Minimize Payment Failures

From the initial purchase to each subsequent rebill, failed payment is one of the main reasons for lost revenue.

Many payment service providers will automatically retry failed payments once or notify customers of failed payments. This is a good place to start, but there are more ways to meaningfully reduce involuntary churn due to failed payments. 

FastSpring helps you proactively minimize payment failures and reduce churn with flexible dunning management, which includes:

  • Proactive reminders to update payment information (e.g., “Your subscription is due soon”).
  • Multiple follow-up notifications (e.g., two, five, seven, 14, and 21 days after their payment method fails).
  • A pre-made email template for reminders — or the ability to customize your own messages.
  • Multiple payment retries before each follow-up notification is sent out.
  • Automatic payment gateway rerouting (this solves many payment failures due to network or system errors.
  • An intuitive self-serve portal (customers can easily update payment information from the same portal where they manage their subscription plan).
Screenshot of FastSpring's Notifications and Retention reminders settings.

Plus, you can choose whether to pause or continue the service when a payment fails. If you keep the service going after a failed payment and give your customers a chance to update their payment information, you’ll have less churn and increase retention.

You can also choose to apply a pause rather than a full cancellation of their service after all reminders have been sent out. Pausing makes it easier for your customer to restart their subscription without the hassle of onboarding again.

You can read more about how one of our customers reduced churn by 50% in this case study

Branded, Localized Checkout to Increase Conversions

Friction at the purchase step can cause customers to fall off before completing a purchase. For example:

  • If the price at checkout is different than it was on the website (e.g., different currency or different amount because additional fees have been added without a clear label), customers may decide not to buy.
  • If the checkout is visually very different from the website, or if the checkout is on an entirely different website, the customer is less likely to believe the checkout is authentic and secure.
  • If they have to create an account in order to purchase but don’t want to.
  • If checkout translation and localization is incorrect, inconsistent, or missing, so the customer questions the store’s legitimacy.

These are just a few examples, but there are many reasons why a customer may decide against completing a purchase at the last minute.

FastSpring helps you anticipate objections and reduce friction at checkout in the following ways:

  • Customizable checkout UI.
  • The most popular payment methods.
  • Local currency conversions and language translations.
  • Conversion-optimized embedded, pop-up, or web storefront checkout experiences.
  • Personalized developer support.

Read on for more details about each.

Customizable Checkout UI

Many subscription management platforms or payment processors only provide checkout templates where you can add your logo and choose basic color schemes. These solutions usually fail to match your visual branding and may not be optimized for increasing conversions. 

To create the best experience for your customers and get the highest conversion rates, you need more custom abilities.

FastSpring lets you customize the look and feel of your checkout with pre-built branding tools and CSS overrides. You have complete visual customization with our Store Builder Library (SBL), a JavaScript library that lets you customize, brand, and streamline your entire checkout workflow to build trust and eliminate friction throughout the buyer’s journey. This allows you to create the checkout experience that most aligns with your brand and highlights your product. 

One of the biggest reasons customers fail to complete a purchase is because they can’t use their preferred payment method. 

However, offering different payment methods isn’t as simple as adding their logo to your checkout screen. 

You have to agree to certain terms and conditions before a payment network or issuing bank will approve transactions with your business. Each payment provider will have different regulations regarding fraud, chargebacks, privacy protection, etc. It can be a huge task to stay in good standing with many different payment providers on your own. 

If you want to transact internationally, there will be even more to manage.

While Visa and Mastercard may be popular payment methods in the U.S., buyers in other countries prefer different payment methods. To convert international customers, you need to provide many different types of preferred payment methods — which means more payment providers to maintain. 

For instance, Pix is a preferred payment method in Brazil, while AliPay is a preferred payment method in China.

FastSpring takes care of all of this — from staying in good standing with payment networks, to managing fraud and chargebacks — for you.

FastSpring already has good relationships with many different payment networks and issuing banks around the world, which means you can accept your customers’ preferred payment methods right away. 

Local Currency Conversions and Language Translations

Customers are more likely to trust a checkout experience that uses the same language and currency as what’s shown on your website. That’s why FastSpring lets you translate checkout into the local language and convert prices to the local currency. 

You can let each buyer select their preferred language from a dropdown menu featuring 21+ supported languages. Or, you can lock the language and FastSpring will automatically select the appropriate language based on the buyer’s location. 

You also have the option to set custom pricing strategies in each currency or let FastSpring automatically convert prices to the local currency (FastSpring supports 23+ currencies).

If you choose to let FastSpring convert product prices for you, we match the format of the original price. For example, if the original price is $12.99 and the conversion to Euros is €14.29, FastSpring would change it to €14.99.

Learn how Nelio increased growth by 50% with localized checkout in this case study.

Embedded, Pop-Up, or Web Storefront Checkout

With FastSpring, you can embed checkout directly on your website, insert a pop-up checkout, or send customers to a secure web storefront managed by FastSpring. This gives you the flexibility to choose the solution that’s best for your team and customers.

To compare, embedding checkout directly on your webpage ensures less disruption and typically decreases the likelihood of your buyers abandoning. Pop-up checkout requires less setup — simply insert a few lines of pre-written HTML and Javascript in your webpage.

Screenshot of IronPDF's embedded FastSpring checkout.

Learn how DaisyDisk was able to spend less time managing their checkout while significantly increasing conversions by using FastSpring’s pop-up checkout, in this case study

To outsource the entire checkout process to FastSpring, you can choose the web storefront option.

With the web storefront option, customers will be redirected to a webpage entirely managed by FastSpring — but customized to match your visual brand identity — where they can view their cart and complete the purchase.

Personalized Developer Support

Many payment service providers only help with the initial setup and when something goes wrong with the software. Some companies only provide personalized support to their largest clients. This leaves you on your own to manage ongoing payment operations.

FastSpring is dedicated to providing you with the best experience throughout the entire engagement.

Our team is always available to help — regardless of how big or small your operation is. Whether that’s helping you build the best checkout experience for your business or expanding into a new region, our friendly customer support team will help you find and build out the best solutions for your business.

Robust Analytics and Reporting Dashboards

FastSpring’s Reporting and Analytics is a robust suite of reports and visualizations to keep you informed of important stats such as MRR, churn rate, new customers by product type, and more. 

For example, our Subscription Overview dashboard shows key subscription analytics including subscription churn, subscriber loss, MRR churn rate, active customers, and more. 

Screenshot of FastSpring Subscription reporting dashboard's Subscription tab.

Use our Subscription Overview dashboard, Revenue dashboard, data export reporting and data API features, and more to better understand:

  • How each product contributes to your bottom line. 
  • When customers are most likely to drop off.
  • What coupons or promotions are working.
  • How individual trials are performing.
  • Which subscription models generate the most revenue.
  • Where your customers are located.
  • What currencies and payment methods customers prefer.
  • Chargeback rates by customer segment.
  • Chargeback rates by product line.
  • The status of your active webhooks.
  • And much more.

All-in-One Pricing Without the Need for Additional Software

Chargebee separates its Billing features into three pricing plans, so you may eventually need the most expensive plan to get the features you need. For example, chargeback automation is not offered in Chargebee’s Starter plan. 

Plus, you’ll still have to pay for additional software solutions like payment gateways (sometimes interchangeably referred to as “payment processors,” although they are technically different) or tax software for a complete payment management system. Even with seamless integrations, it’s a hassle, an additional cost, and may even require additional headcount to manage it all. 

FastSpring, on the other hand, offers one flat-rate price that includes the entire platform — every feature and all services. Our team works with you to find an affordable price based on the volume of transactions you move through FastSpring (you’ll only be charged when successful transactions take place).

If you think FastSpring could be the right payment solution for your subscription-based business, sign up for a free account or request a demo today.

2. Stripe

A screenshot of Chargebee alternative Stripe's homepage.

Stripe’s main service is payment processing; however, they do offer a few other services, such as: 

  • Checkout.
  • Fraud and risk management.
  • Automated invoicing.
  • In-person payments.
  • Subscription management.
  • Virtual and physical card issuing.
  • Business spend management.

Stripe billing has fewer options than Chargebee for recurring billing, but you can easily integrate the two software solutions if you want to use (and pay for) both. Stripe works with companies of all sizes, from startups to large enterprises. 

3. Maxio

Screenshot of Maxio's homepage.

Maxio (formerly Chargify and SaasOptics) is another cloud-based financial operations platform for B2B SaaS. They offer solutions to automate financial systems on the back end, and features to help improve the order-to-revenue process. Their main services include: 

  • Subscription management.
  • Usage-based and global billing.
  • Revenue recognition and revenue management tools.
  • Billing system dashboard and metrics.
  • Built-in integrations with various other software (e.g., accounting software such as QuickBooks and Xero).
  • International payment gateways.

Maxio advertises their ability to accommodate any go-to-market strategy (such as product-led or sales-led approaches).

4. Zoho Billing

Screenshot of Chargebee alternative Zoho's homepage.

Zoho offers a large suite of software to run your business, from a CRM and ERPs to a video meeting platform. Zoho Billing (formerly Zoho Subscriptions) is their payment processing and recurring billing solution. Some of their key features include: 

  • Invoicing and invoice templates.
  • Multi-currency support.
  • 50+ pre-built analytic reports.
  • Automatic online payment retries.
  • Out-of-the-box integrations with other billing platforms (e.g., Stripe, PayPal, etc.).

Zoho Billing offers more pre-made solutions than other options on this list, which some companies may find limiting. However, Zoho Billing may be a good choice if you’re already embedded in the Zoho ecosystem.

5. Stax Bill 

Screenshot of Stax Bill's homepage.

Stax Bill (formerly Fusebill) provides subscription management software and a payment gateway in one platform. Other than offering a payment gateway with each plan, Fusebill offers many of the same features as Chargebee, including: 

  • Dunning management.
  • Flexible recurring billing options.
  • Recurring revenue recognition features.
  • Billing analytics.

Fusebill also offers flexible catalog pricing and inventory tracking tools. 

6. Zuora

Screenshot of Chargebee alternative Zuora's homepage.

Zuora is a monetization platform for B2C and B2B companies. Zuora’s key functionalities include: 

  • Customer subscription management.
  • Revenue reconciliation tools.
  • Revenue analytics.
  • Built-in integrations with lots of business software.
  • Low-code SDKs and APIs to build your own integrations.
  • Quoting software.

Zuora provides a lot of flexibility for building out your own solution on top of their platform; however, non-developers may find it difficult to manage.

7. Sticky.io

Screenshot of Sticky.io's homepage.

Sticky.io (formerly Limelight) is a subscription management platform that integrates with popular ecommerce platforms such as Salesforce Commerce Cloud, BigCommerce, and Shopify. They advertise the ability to: 

  • Support nearly any subscription or pricing model.
  • Create coupons, discounts, and special promotions.
  • Offer add-ons, upsells, etc.
  • Fight fraud and chargebacks.
  • Manage automated dunning.

Like Chargebee, Sticky.io doesn’t provide a payment gateway; however, they do offer pre-built integrations with several payment gateways. 

8. PayPal Enterprise Payments

Screenshot of PayPal's enterprise payments landing page.

PayPal Enterprise Payments (formerly Braintree by PayPal) is a payment gateway provider that also provides merchant accounts. Other features include: 

  • Subscription billing management.
  • Optimized checkout flow.
  • Flexible risk mitigation options.
  • Reporting and analytics.
  • Third-party integrations for recurring billing, accounting, and more.

PayPal Enterprise Payments supports payment from PayPal, Venmo (in the U.S.), Apple Pay, and Google Pay.

9. Recurly

Screenshot of Recurly's homepage, a Chargebee alternative.

Recurly is a subscription management software and recurring billing platform. Recurly offers features such as:

  • Multiple pricing models.
  • Item catalog.
  • Recurring billing.
  • Payments orchestration.
  • Subscriber management.
  • Churn management.
  • Reporting dashboards and analytics.

Like Chargebee, Recurly doesn’t include a native payment gateway, but the platform does offer pre-built integrations with popular gateways such as Stripe, PayPal, Authorize.net, and more. Recurly also allows you to connect multiple gateways.

10. Paddle

Screenshot of Stripe alternative Paddle's homepage, black with white text and yellow blurs with white customer logos.

Paddle is another Chargebee alternative that’s an MoR with a subscription billing platform, appropriate for use by SaaS and software companies. Paddle has features including: 

  • Multiple payment gateways.
  • Secure checkout.
  • Recurring billing management.
  • A robust payments toolkit.
  • Fraud protection.
  • Transaction and subscription reporting.
  • Invoicing. 
  • And more.

Learn more about Paddle alternatives.

Frequently Asked Questions About Chargebee Alternatives

What’s the Difference Between Chargebee and FastSpring?

In short: Chargebee is a subscription management platform for SaaS companies, while FastSpring is an all-in-one payments and digital commerce platform (and merchant of record) built for digital-first businesses.

Who Are the Top Competitors to Chargebee in 2025?

Top Chargebee competitors include:

  • FastSpring.
  • Stripe.
  • Maxio.
  • Zoho Billing.
  • Stax Bill.
  • Zuora.
  • Sticky.io.
  • PayPal Enterprise Payments.
  • Recurly.
  • Paddle.

What Should I Consider When Choosing a Subscription Management Platform to Replace Chargebee?

The most important considerations include:

  • Your business size, industry, and transaction volume.
  • Support for localization and preferred payment methods in the jurisdictions where your customers live.
  • Integrations with other tools in your payments and tech stack.
  • Security and compliance.
  • Budget, costs, and scalability.
  • Customer support.

How Difficult Is It to Migrate From Chargebee to Another Platform?

In short, the complexity of migrating from Chargebee to another platform depends heavily on factors including:

  • Your current Chargebee setup.
  • The complexity of your subscription model.
  • The platform you’re migrating to.

If you’re looking to migrate from Chargebee to FastSpring, FastSpring can import your subscriptions with payment details or without payment details. Either way, our team is always available to help — regardless of how big or small your operation is.

Need a Chargebee Alternative for Your SaaS, Software, Video Games, or Other Digital Products Business?

FastSpring can help!

Instead of managing a large software stack for just the subscription lifecycle, let FastSpring handle all of payment lifecycle management for you. FastSpring is more than a subscription management platform — we’re the merchant of record for global SaaS companies and many other digital businesses. 

Sign up for a free account or request a demo today.


This post was originally published in December 2022 and has been updated.

The post Chargebee Alternatives in 2025: 10 Competitors and How They Differ appeared first on FastSpring.

]]>
FastSpring Sponsoring ADC Bristol 2025 https://fastspring.com/blog/events-adc-virtual-2025/ Mon, 20 Oct 2025 21:47:50 +0000 https://fastspring.com/?p=30874 FastSpring is sponsoring ADC on Nov. 10-12, 2025. Visit our virtual booth to learn how FastSpring can help you grow and monetize your audio software.

The post FastSpring Sponsoring ADC Bristol 2025 appeared first on FastSpring.

]]>
FastSpring is proud to be sponsoring Audio Developer Conference, which will take place on Nov. 10-12 at the Delta Hotels by Marriott Bristol City Center.

ADC returns in 2025 as a full three-day conference, with a hybrid format that brings the best of both worlds: an in-person gathering in Bristol, U.K., and an engaging online experience via the Gather platform. Whether you’re attending on site or tuning in remotely, you’ll have full access to all keynotes, panels, and talks. Sessions from Bristol will be streamed live for online attendees, while virtual presentations will be broadcast into the venue, ensuring everyone can be part of the conversation.

This year, Audio Developer Conference is also bringing back ADC Workshops as part of the main schedule, available to both in-person and online participants. Taking place on the first day of the event (Nov. 10), workshops will run alongside a full program of 18-minute talks. Spots for workshops are limited and require registration, so participation will be on a first-come, first-served basis. It’s the perfect opportunity for developers, educators, and students around the world to learn, connect, and exchange ideas in real time.

Where to Get Tickets

Still need tickets? Head over to the registration page to grab your ticket today.

How to Connect With FastSpring

You can connect with FastSpring at our virtual booth during Audio Developer Conference through the Gather platform. Simply navigate to the exhibitor area, find the FastSpring booth, and drop in to chat with our team. We’ll be online to answer questions, share insights, and help you explore how FastSpring can help you grow and monetize your audio software.

Already know that you want to meet with a FastSpring expert during the event? Schedule a demo today.

FastSpring is the leading merchant of record for global SaaS and software companies — powering over a billion dollars in worldwide transactions every year. We’ll manage your checkout, VAT and sales taxes, compliance, and more, freeing you to focus on what you do best: building great audio software. Founded in 2005, FastSpring is a privately owned company headquartered in the U.S., with offices in the Netherlands, Singapore, Canada, the U.K., and Ireland. For more information, please visit https://www.fastspring.com.

The post FastSpring Sponsoring ADC Bristol 2025 appeared first on FastSpring.

]]>
Cyber Weekend Benchmarking Data: 2025 SaaS and Software Holiday Spend Report https://fastspring.com/blog/cyber-weekend-benchmarking-data-2025-saas-and-software-holiday-spend-report/ Mon, 13 Oct 2025 20:05:00 +0000 https://fastspring.com/?p=30789 Each year, we release SaaS and software sales benchmarking data for Q4 — and the data show why it’s so important for software businesses to optimize for Cyber Weekend sales.

The post Cyber Weekend Benchmarking Data: 2025 SaaS and Software Holiday Spend Report appeared first on FastSpring.

]]>
Black Friday, Cyber Monday, the collective Cyber Weekend, and the rest of the global “shopping season” is just around the corner again. 

And as our annual SaaS and software benchmarking data report has shown across the last few years, the shopping spike doesn’t just apply to physical goods like clothing, jewelry, toys, or electronics. 

End-of-year budget spending certainly contributes to this effect too.

Is your SaaS or software business ready to take advantage of the B2B and B2C spending sprees? 

FastSpring is a merchant of record for over 3500 companies that use our platform daily. By analyzing years’ worth of aggregate sales data, we have helpful insights to share about Q4 sales spikes for software and SaaS businesses.

Below, we share this year’s insights into:

FastSpring is a merchant of record that can help you easily grow your business internationally. We provide an all-in-one payment platform for SaaS, software, video game, and other digital product businesses, including VAT and sales tax management, payment localization, and award-winning consumer support. Set up a demo or try it out for yourself.

Our Data Sources and Analysis Methodology

Where the Data Are From

FastSpring helps companies sell digital products in over 200 countries, but to help us keep this study consistent and repeatable, we’ve pulled sales data from eight countries around the world. 

Each year, we include the U.S., Canada, Germany, Great Britain, India, Brazil, Australia, and China.

This data are specific to where the sales took place, not where the companies are located.

To show a glimpse into one specific country that’s also a large, often-targeted SaaS and software market, we also show the same trends for just the United States.

When the Data Are From

To highlight useful trend data while avoiding any major outliers skewing the data, we use aggregated data for the most current five calendar years. The data below represent sales across 2020-2024.

We also use a seasonal index to show quarterly or monthly sales against a year’s monthly or quarterly average (read more about that in the How section below).

What We Measured

FastSpring supports the sales of a vast array of digital products, including SaaS, software, video games, mobile apps, AI, and eLearning. 

To narrow this report to a specific type of industry, we’ve excluded everything but software and SaaS.

We also used U.S. dollars as the currency for all figures to make comparison easy and clear. 

How We Measured It

To establish a baseline, we calculated monthly and quarterly averages for each year. 

For a very simplified example, if four quarterly totals were $200, $200, $100, and $300, the quarterly average for the year would be $200. 

Then once we had the period average for the year, we compared each period’s actuals to that period average to get a percentage.

So for example, if Q3 shows a percentage of 90%, it means the sales total that quarter was 10% lower than the year’s quarterly average. If Q4 shows a percentage of 111%, that means Q4 sales totals were 11% higher than the year’s quarterly average. 

We then combined that data across five years to get the five year averages and avoid any outliers causing a sharp spike that might have skewed the results too much. 

The following data show the monthly and yearly averages for U.S. software and SaaS sales across the last five years.

5YR Average US SaaS and Software Sales by Month

In the U.S., the three highest monthly spikes of SaaS and software sales are in March (104%), December (105%), and as expected, November (112%).

A blue bar graph showing 5 years' worth of U.S. SaaS and software sales across the 12 months of the year with a particularly large spike in November.

5YR Average US SaaS and Software Sales by Quarter

Similarly, Q4 is the highest-performing quarter for software and SaaS sales at 106%, with Q1 at 99%, Q2 at 97%, and Q3 at 98%.

A blue bar graph showing 5 years' worth of U.S. SaaS and software sales across the 4 quarters of the year with a particularly large spike in Q4.

Global trends show even stronger spikes in November and Q4, thanks to particularly strong sales in China and Germany (more on that below). 

5YR Average Global SaaS and Software Sales by Month

Just like in the U.S., global sales of software and SaaS spiked slightly to 104% in March and 105% in December. 

But as expected, the spike in November was higher than just in the U.S., at 118% globally.

An orange bar graph showing 5 years' worth of global SaaS and software sales across the 12 months of the year with a particularly large spike in November.

While Black Friday and Cyber Week have traditionally been anchored to the Thanksgiving holiday in the U.S., seasonal sales surges have caught on worldwide, perhaps thanks to other countries such as Germany observing Black Friday and Cyber Monday (or even an entire Cyber Week), and China observing Singles Day on November 11 (11.11)

5YR Average Global SaaS and Software Sales by Quarter

Quarterly sales reflect a slightly smaller spike over the shopping holiday season when Oct.-Nov.-Dec. are averaged together, but the spike is still significant at 8%.

An orange bar graph showing 5 years' worth of global SaaS and software sales across the 4 quarters of the year with a particularly large spike in Q4.

Because the quarterly spike isn’t as high as the single spike in November, it reinforces that software and SaaS companies should focus their marketing and sales efforts specifically in November to get the best return and see the most growth. 

5YR Average SaaS and Software Sales by Month per Country

To illustrate the changes in various countries (and give you an idea of which countries may be most worth targeting), we’ve also broken out the monthly data by country for the eight countries we included in this survey. 

Here’s what monthly software and SaaS sales fluctuations look like with five years of data for the United States (US), Canada (CA), Germany (DE), Great Britain (GB), India (IN), Brazil (BR), Australia (AU), and China (CN).

A colorful line graph showing 5 years' worth of global SaaS and software sales data across the 12 months of the year, with all 8 countries showing their biggest spikes in November.

We mentioned the China and Germany shopping holidays in November above, but China also sees spikes in April and June, likely due to the 418 (April 18) and 618 (June 18) shopping holidays.

Regardless of other monthly spikes throughout the year, November is still the single highest spike for any of the eight countries we included — ranging from 112% in the U.S. and 117% in India on the low end, to 148% in Germany and 149% in China on the high end.

SaaS and software companies can capitalize on this trend with:

  • Email promotions.
  • Custom partner coupon codes (which they can help you promote).
  • Social media campaigns.
  • Upsell or bundle offers.
  • Localized promotions that would especially appeal to customers in each of your targeted regions.
  • A merchant of record partner for online payments that can help you easily sell your software or SaaS worldwide.

How FastSpring Can Help

Software companies that already use FastSpring know why we’re a trusted partner in the global payments space. (Check out what Avid and Stardock have to say about the great experiences they’ve had with FastSpring, or find more FastSpring customer stories here.)

But if you’re new to FastSpring (or to the merchant of record model), here are some of the reasons our customers love using FastSpring to sell their software around the world.

FastSpring Makes Global Payments Easy for You and Your Customers

Payments Localization

Making your product available for purchase in more countries is only part of taking a software business global. 

You also have to make it very easy for users to make the purchase, with the least hesitation possible.

That requires presenting a localized checkout experience — including automatic conversions to local languages and currencies, offering dozens of the most popular payment methods (which vary by region), intelligent payment routing to regional payment gateways (to help reduce failed payments), and more.

To support improved payment localization, we work closely with our customers and payment partners to understand which payment methods are the most valuable in different regions and industries across the globe. 

This has materialized in the release of UPI in India and Pix in Brazil throughout 2025. 

By the end of October 2025, we plan to improve our Pix capabilities with support for recurring payments on subscription purchases. We’re also excited to add Toss payments in South Korea, providing additional support beyond Kakao Pay in the region.

Custom Discounts, Offers, and Coupons

When you’re running campaigns for Cyber Weekend or other regional holidays, you’ll need a partner who can support customizable offers and coupons. 

This includes the ability to:

  • Offer percentage discounts on individual items.
  • Preapply coupons via custom links.
  • Stack multiple coupons.

FastSpring already supports all of those today, but now, we’re adding the ability to apply discounts at the order level to add even more flexibility on promotional planning. Instead of offering discounts on a per-item basis, you can now apply the discount to the entire order — which translates into clearer promotions for your customers, and ultimately, more completed orders. This feature is set to launch by the end of October, with plenty of time for Cyber Weekend prep.

Robust At-a-Glance Reporting

Once you’ve launched your Cyber Weekend campaigns, you’ll need to monitor their success throughout the course of the promotional holidays. 

With FastSpring, you get access to our Welcome Dashboard, which provides an instant view of the health of your business and campaigns. This dashboard shows key metrics such as net sales, orders, subscriptions, and chargebacks — without the need for extra navigation. That makes it easy to understand at a glance how your campaigns are performing.

If you need to dig deeper, you can simply click into an individual dashboard to dig into more specifics around individual products, chargeback rates, churn rates, and even revenue recognition for the future.

With the wide variety of reports available, you won’t have to wonder how your campaigns are performing. Instead, you can glean clear insights into your campaign’s successes or make tweaks to your campaigns if something is trending in the wrong direction.

FastSpring has localized payments, flexible discounts, and visual reporting covered. Learn more about FastSpring’s global payments.

FastSpring Calculates, Collects, and Remits Global Taxes so You Don’t Have To

FastSpring doesn’t just facilitate payments — we’re a merchant of record, which means we become the entity actually selling the digital products.

That also means that we’re the ones who handle sales taxes and VAT. 

FastSpring’s team of experts stays current on global tax regulations so we can calculate, collect, and remit those taxes — so you don’t need to worry about it. 

Learn more about FastSpring’s global tax management

FastSpring Has World-Class Support for You and Your Users

FastSpring’s award-winning support team is standing by and ready to help both the companies that use FastSpring as their merchant of record, and the customers who purchase software, SaaS, and other digital products.

For consumer support, customers can submit an online request and get personalized assistance. FastSpring also provides a helpful list of support topics for consumers to browse, including Licenses and Downloads, Checkout and Purchasing, and more.

For software companies using FastSpring as their MoR, you can submit a request from within the FastSpring app, or simply visit our support page.

Read more about our Stevie® award for Front-Line Customer Service Team, our Globee® award for Customer Excellence in the “Achievement in Team Customer Success” category, or submit a seller or consumer support request.

Partner With FastSpring

For over 20 years, FastSpring has been a trusted payment provider that can help you easily grow your business internationally. As a merchant of record, we provide an all-in-one payment platform that includes VAT and sales tax management, payment localization, award-winning consumer support, and more — making us an excellent partner for SaaS, software, video games, mobile apps, AI, eLearning, and other digital goods businesses. 

Set up a demo or try it out for yourself.

The post Cyber Weekend Benchmarking Data: 2025 SaaS and Software Holiday Spend Report appeared first on FastSpring.

]]>
Stripe Alternatives for 2025: In-Depth Guide and 8 Options https://fastspring.com/blog/stripe-alternatives/ Thu, 28 Aug 2025 00:23:17 +0000 https://fastspringstg.wpengine.com/?p=27293 We compare 8 Stripe alternatives separated into options for digital goods companies (with MoR highlights) or for physical goods companies.

The post Stripe Alternatives for 2025: In-Depth Guide and 8 Options appeared first on FastSpring.

]]>
Most Stripe alternatives fall into one of two categories: payment processors, or a billing solution that covers payment processing and other aspects of billing such as fraud detection, checkout, and more.

For digital-first businesses, the easiest way to manage all aspects of billing is to choose a solution that acts as your merchant of record (MoR). A billing solution that acts as your MoR gives you access to multiple payment processors (which lets you accept more payment methods and is useful when accepting payments globally, as we explain below) while taking on the liability of all transactions for you. An MoR also takes the lead on chargebacks, fraud prevention, tax audits, legal compliance, and more.

When selling physical goods and services (online or in person), various Stripe alternatives built for physical goods payments (such as Amazon Pay, Square, etc.) can provide payment processing, order fulfillment, financing options, and more. (It’s worth noting that most of these solutions can also be used by SaaS, software, video game, and other digital goods companies; however, none of them is a complete payment solution.)

In this guide, we compare eight of the best Stripe alternatives in each of these categories. Since our expertise is in providing MoR services to digital-first companies, we’ll start with an in-depth review of our solution, FastSpring.

Table of Contents

  • MoRs for digital goods companies:
    • FastSpring: International payment solution for SaaS, software, video game, mobile app, AI, eLearning, and other digital product businesses.
    • Paddle: Payment infrastructure platform.
    • Verifone: Formerly 2Checkout.
  • Billing software for selling physical goods and services:
    • Square: Popular payment platform for startups.
    • PayPal for Business: Available on major ecommerce platforms.
    • Authorize.net: For merchants and small businesses.
    • Adyen: Robust financial technology platform.
    • Amazon: Payment service and order fulfillment.

Note: Information in this article was validated at time of publishing and is subject to change.

If you’re looking for a Stripe alternative to help you grow your business internationally, we can help. FastSpring provides an all-in-one payment platform for SaaS, software, video games, mobile apps, and other digital products businesses, including VAT and sales tax management, payment localization, and consumer support. Interested? Set up a demo or try it out for yourself.

All-In-One Payment Solutions (MoRs) for Digital-First Businesses

Most companies using Stripe (or something similar to Stripe) know it’s more than just a payment processing platform — but that there are challenges to making the system work for a global SaaS company. It can require tons of add-ons, a complicated pricing structure, and additional fees — and still lack or limit some key features.

For example, Stripe advertises subscription management features as part of the Stripe Billing package; however, many companies end up integrating with another service like Chargebee or Recurly to get the subscription management features and ease of use they need.

Often, digital goods businesses end up with a payment tech stack of over a dozen tools for:

  • Calculating and remitting international taxes.
  • Accessing additional subscription management features.
  • Covering fraud protection.
  • Handling chargebacks.
  • Implementing a checkout.
  • Getting higher authorization rates in other countries.
  • And more.

Making it all work together puts a massive strain on the development team.

Plus, you’ll need to maintain a large team of tax and legal experts to stay up to date on regional regulations and maintain global compliance (because solutions like Stripe don’t usually help with legalities). For example, while it’s true that historically, SaaS and ecommerce companies haven’t always needed to pay VAT or sales tax, that’s no longer the case. If you don’t collect and remit the right amount of tax in each jurisdiction where you sell, you could face hefty fines — or even be banned from selling in that region in the future.

Choosing a payment processing solution that also acts as your MoR solves all these problems. 

A merchant of record (MoR) takes care of the entire digital goods billing process for you, including collecting and remitting local and international taxes (such as VAT and local sales tax), staying compliant with local laws and regulations, online payment processing, chargebacks, and much more.

FastSpring Is an International Payment Solution

FastSpring has been acting as an MoR for global software and video game companies for over 20 years, so we know what it takes to expand globally almost overnight. Here are some examples of how FastSpring helped other SaaS and software companies expand globally and increase revenue:

  • Mailbird achieved over 100% growth by switching to FastSpring. They previously experimented with platforms like Stripe and PayPal. Read the Mailbird case study here.
  • Capture One increased their conversion rate by 40% by switching from an in-house solution to FastSpring to help them with global payments. FastSpring offered them localized checkout experiences that automatically display accurate pricing, language, currency, and taxes around the world. Plus, it was clear that FastSpring is an invested partner with the scalability to grow with their business needs as Capture One expanded their global reach. Read the Capture One case study here.
  • SocialBee doubled its monthly recurring revenue and managed tax compliance by switching from Braintree to FastSpring. Read the SocialBee case study here.

Next, we’ll take a deep dive into a few of FastSpring’s billing solutions

Note: The following solutions are also offered to digital-first businesses selling downloadable software, video games, app subscriptions, and other digital products

Leverage Multiple Payment Processors to Increase Revenue

Many digital-first companies and founding teams initially think they just need one payment processor to accept payments. However, most of those companies eventually end up needing more in order to:

  • Accept more payment methods: Customers are more likely to complete a purchase if they can use their preferred payment method. However, not every payment processor supports the same list of payment methods. Working with multiple payment processors lets you accept more local payment methods and, therefore, increase revenue.
  • Increase authorization rates for international transactions: Card networks are more likely to authorize transactions when the payment processor is in the same country as the buyer. Some payment processors will establish a legal entity in multiple locations; however, most companies still need to work with multiple payment processors in order to process all payments locally. 
  • Accept payments from more countries: Some payment processors only support payments from select countries or regions. Working with multiple payment processors lets you reach customers in more locations.
  • Minimize failed payments: Working with multiple payment processors can also solve connectivity issues or system failures. If one payment processor is experiencing a network failure, you can reroute the transaction to a payment processor that’s fully operational. 

With FastSpring, you’ll be supported by multiple payment processors that specialize in global transactions and accept the most common payment options around the world — including but not limited to Apple Pay, Google Pay, ACH bank transfers, SEPA, Amazon Pay, Pix, AliPay, UPI, and more (with more added all the time).

Click here to see the full list of payment methods accepted by FastSpring.

FastSpring connects with multiple international payment gateways, and our platform uses intelligent payment routing to send each payment to the gateway with the highest authorization rates for that payment method and location. Then, if a transaction fails, we automatically retry the transaction using a secondary payment processor.

Related: Top 10 International Payment Gateways: An In-Depth Guide

Prevent Fraudulent Transactions Without Blocking Valid Transactions 

The right fraud protection can help you increase authorization rates, decrease chargebacks, and protect your company from attacks. However, if legitimate transactions get marked as fraud, you’ll lose revenue.

FastSpring takes the lead on fraud and risk activities by partnering with Sift for advanced risk analysis and fraud protection. Sift uses machine learning and AI to analyze millions of global transactions each month to identify risky transactions with higher accuracy. This means your fraud protection is constantly evolving to provide better security and improve approval rates.

FastSpring can also block transactions from countries and jurisdictions where companies are currently not allowed to do business. 

Note: You also have the option to block transactions from certain regions or limit products in each region.

If one of your customers does initiate a chargeback, or there’s an issue with fraud, FastSpring takes the lead to resolve it for you.

Discover more and read FAQs about FastSpring’s GDPR and PCI compliance, how FastSpring helps protect against high-risk transactions, and more.

Even if all legitimate transactions go through, you could face hefty fines or be prevented from transacting in that region if the transactions don’t comply with local laws and regulations. (For example, the Reserve Bank of India limits automatic recurring payments to ₹15,000 INR, or approximately US$170; transaction attempts above that amount simply won’t go through.) 

Most companies need a full compliance department of legal professionals to keep up to date with all the laws and regulations of each jurisdiction they do business in. 

You can also face fines or penalties if you don’t file consumption tax. SaaS companies didn’t always have to pay tax, but tax regulations for digital sales are changing and being increasingly enforced.

Companies that use Stripe (or another point solution) must handle tax on their own. While Stripe will help gather sales tax, you’ll need other software to collect VAT, GST, and other forms of consumption tax. Plus, you’ll need a staff of tax experts to remit the tax at the end of each tax period. 

FastSpring handles the whole process of calculating, collecting, and remitting global sales and consumption taxes for you by: 

  • Collecting all consumption tax (including GST, VAT, SST, etc.) and remitting it at the appropriate times.
  • Taking the lead on legal compliance (including audits).

FastSpring collects and files taxes in more than 55 countries, 13 provinces, and all 45 U.S. states with sales tax (the other five states don’t collect sales tax). We even handle tax-exempt transactions in the U.S. and B2B reverse charges (when and where allowed) internationally.

FastSpring is fully compliant with the EU General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Additionally, we renew our level one certification — which is the highest level possible — with the Payment Card Industry Data Security Standard (PCI DSS) every year. FastSpring also participates in the Data Privacy Framework (DPF) for international data transfers. Learn more at our Trust Center.

An artistic rendering of a paper with GDPR written on it and smaller decorative icons of a key and a padlock above and below it.
An artistic rendering of a paper with CCPA written on it and smaller decorative icons of a key and a padlock above and below it.
An artistic rendering of a paper with PCI DSS written on it and smaller decorative icons of a key and a padlock above and below it.

We build and maintain relationships worldwide with tax law specialists who keep us aware and up to date on laws and regulations as they change.

Manage Everything From Checkout to Subscriptions in One Platform

Instead of building and onboarding a payment stack of over a dozen different solutions to help you manage subscriptions, checkout experiences, reporting, analytics, and more, FastSpring lets companies streamline and manage all aspects of digital goods billing directly from their FastSpring dashboard. 

Below is a brief overview of these features. For a complete list of features (including digital invoicing and interactive quotes) visit FastSpring’s product overview page.

Custom, Localized, and Optimized Checkout Experience

FastSpring gives you full control over your checkout process with our Store Builder Library (SBL). You can customize your checkout, and our team will offer personalized customer support along the way.

We also offer three pre-built experiences. With minimal code, you can embed the FastSpring checkout into a web page or insert a pop-up checkout. Or, if you want to outsource the entire checkout process, you can choose the web storefront option to send customers to a secure web storefront managed entirely by FastSpring. You can also customize the storefront to match the visual branding of your website.

An artistic rendering of the FastSpring popup checkout with smaller decorative icons around it of a shopping cart, a coin, and a credit card.

Whichever checkout experience you choose, FastSpring can automatically localize your checkout based on the customer’s location, including translation into 21+ languages and price conversion to many local currencies. You can also set your own language, currency, and price for each region or opt to let your customers choose for themselves.

A screenshot of Iron Software's FastSpring embedded checkout.

Related: International Recurring Payments (How We Handle It for You)

Subscription Management

FastSpring lets you create a variety of custom trial and recurring billing models without writing a line of code. You can set up:

  • Automatic weekly, monthly, yearly, or custom recurring billing.
  • Prorated billing to accommodate upgrades — and downgrades — mid cycle.
  • Free or paid trials of any length.
  • Trials with or without collecting payment details.
  • Automatic or manual renewal.
  • Upsells, cross-sells, one-time add-ons, and discounts.
  • Automatic failure handling, notifications, and retries to reduce churn.
  • B2B digital invoicing.
  • And much more.

You‘ll also have access to FastSpring’s developer-friendly API and webhooks library to build more complex custom subscription logic and integrations.

A screenshot of the FastSpring platform's subscription pricing editing screen.

If you want to see how FastSpring compares to Chargebee, read this article

Dunning Management

FastSpring handles all failed payments and customer notifications for you — simply choose how you want it handled, and we take care of the rest. Our platform offers flexible dunning management options, which include: 

  • Proactive reminders when payment information needs updating. Automatically send flexible, custom email reminders to your customers before a debit or credit card expires. We offer a pre-made email template — or you can customize your own email and set it to send two, five, seven, 14, or 21 days after a payment failure.
  • Automatically retry failed payments. FastSpring retries the original payment method multiple times, including before sending each reminder email.
  • Flexible failed payment logic. Continue (or pause) service until the last notification has been sent out. Pause (or cancel) the service once all notifications have been sent out and the payment is still getting declined.
Customer Emails: Charge Failed, Payment Overdue, Trial Reminder

With FastSpring, your customers will also have an easy-to-access and intuitive self-serve Customer Account Portal where they can view their order history, update payment information, and manage their subscriptions. The portal is managed by FastSpring but matches the branding of your checkout for a cohesive customer experience.

Reporting and Analytics

While Stripe does offer revenue recognition tools for accounting purposes, many SaaS companies using Stripe end up adding a reporting and customer analytics tool to give them more insight into stats such as MRR, churn rate, new customers by product type or geography, and more. 

FastSpring’s Reporting and Analytics, on the other hand, is a robust suite built for digital products businesses. You can view key performance indicators (KPI) for your customer base and subscription models to better understand:

  • How each product contributes to your bottom line. 
  • When customers are most likely to drop off.
  • What coupons or promotions are working.
  • Which subscription models generate the most revenue.
  • Where your customers are located.
  • What currencies and payment methods customers prefer.
  • Chargeback rates by customer segment.
  • Chargeback rates by product line.
  • The status of your active webhooks.
  • And much more.
Screenshot of FastSpring Subscription reporting dashboard's Subscription tab.

Our platform features several dashboards, which include:

  • Revenue Overview.
  • Subscription Overview.
  • Revenue Recognition.
  • Chargeback Overview.
  • Webhook Status.

If you don’t see exactly what you need, you can create and save your own custom reports. You can also reach out to our team for help finding or building the report you need. Export and share reports as a CSV, PNG, or XLSX file. 

For a complete list of features — including Digital Invoicing and Interactive Quotesvisit our website.

One Simple Pricing Model; All the Benefits

Most payment processors (like Stripe) typically charge a low processing fee; however, they’ll charge extra for features such as subscription management, additional payment method support, tax collection, and more. 

They’ll also usually pass along transaction fees such as network/scheme downgrade fees.

Plus, you’ll have to pay for any additional software needed for a complete billing solution — and the staff to manage the entire process. 

For most companies, what starts as seemingly low, flat-rate pricing ends up being an expensive route to take.

On the other hand, FastSpring manages your entire digital goods billing process for one flat rate. You’ll get access to our whole platform — including every feature and all services — in a single comprehensive package. 

Our team works with you to find an affordable monthly fee based on your transaction volume (and you’ll only be charged for successful transactions). Plus, you won’t need any additional software or headcount since we’re liable for transactions and take the lead on sales tax and VAT.

If you’re looking for a Stripe alternative to help you grow your business internationally, we can help. FastSpring provides an all-in-one payment platform for SaaS, software, video games, mobile apps, and other digital products businesses, including VAT and sales tax management, payment localization, and consumer support. Interested? Set up a demo or try it out for yourself.

Paddle: Payment Infrastructure Platform

Screenshot of Stripe alternative Paddle's homepage, black with white text and yellow blurs with white customer logos.

Paddle is another Stripe alternative that acts as an MoR for SaaS and software companies. Paddle has features such as: 

  • Multiple payment gateways.
  • Secure checkout.
  • Recurring billing management.
  • A robust payments toolkit.
  • Fraud protection.
  • Transaction and subscription reporting.
  • Invoicing. 
  • And more.

Learn more about Paddle alternatives.

Verifone: Formerly 2Checkout

A screenshot of Verifone's homepage, formerly 2Checkout, which is an option for businesses looking for international payment gateways or Stripe alternatives.

Verifone is a Stripe alternative that can act as your MoR or just as a payment service provider. This gives them the flexibility to support small- to medium-sized companies in different industries offering both in-person and online goods or services (e.g., retail and hospitality). 

Verifone functionalities include:

  • Integrated point-of-sale (POS).
  • Kiosks.
  • Subscription management.
  • Hosted checkout.
  • Partner sales channel management.
  • And more.

Some of these features are included with Verifone packages, while others are add-ons with their own additional fees.

With over 20 years of experience serving international software companies, FastSpring is one of the longest-standing MoRs for SaaS, software, video games, mobile apps, and other digital products companies. Use our expertise to help grow your business quickly. To learn more, sign up for a free account or request a demo today.

Stripe Alternative Billing Software for Selling Physical Goods and Services

While digital product companies can use almost any billing solution to sell their product (although some will be more effective than others), not every solution will be effective for companies selling physical goods or services. Companies selling physical goods and services need solutions that can manage both online and in-person transactions. 

When selling physical goods or services, most companies end up using two or more software solutions to build a complete billing solution. However, there are ways to minimize how many you need and how much it will cost you. The best place to start is to carefully consider your current needs (e.g., are you selling in person and online?) and plan for your future needs (e.g., are you a new business owner who might want to start selling online in the future?). 

Then, you can evaluate each billing solution by asking a few key questions: 

  • How many aspects of billing does the software cover? Is each offering truly sufficient for your current needs (e.g., maybe they offer a subscription billing solution but don’t support the business model you need)? Do the features leave room for your company to grow?
  • Does their pricing model allow you to get all features for one price, or will you have to pay extra for the features you need? Will the price be sustainably cost effective long term, as your company grows?
  • Does the software offer seamless integration with other software you use?
  • Is the software user friendly? 

Next, we cover five Stripe competitors for companies selling physical goods and services to help you get started with your search. 

Screenshot of Square's homepage showing a video of business scenes in the background behind white and blue buttons.

Square is a popular point-of-sale solution for companies of all sizes. With Square, you can accept payments from your online store, in-person, or via social media. Beyond payment processing, Square also offers solutions for: 

  • Virtual terminals (so you can accept credit card payments using your computer).
  • Business management.
  • Customer engagement.
  • Banking (including merchant accounts, savings accounts, and loans).
  • Team management (including payroll, time off, etc.).
  • And more.

PayPal for Business: Available on Major Ecommerce Platforms 

A screenshot of PayPal Open's landing page, an option for businesses looking for international payment gateways or Stripe alternatives.

PayPal is a well-known digital wallet for personal online payments; however, they also offer payment processing for both online and brick-and-mortar businesses. PayPal supports debit card and credit card processing in store or from your online business.

(Digital-first businesses using FastSpring can also process payments using PayPal.)

PayPal for Business also includes: 

  • QR code and POS systems.
  • Donation tools.
  • Built-in integrations with major ecommerce shopping carts (e.g., Shopify, WooCommerce, and more).
  • Risk management and chargeback protection.
  • Mass payouts.
  • And more.

Note: PayPal also has a payments option called PayPal Enterprise Payments (formerly Braintree) that offers your own merchant account.

Authorize.net: For Merchants and Small Businesses

A screenshot of Authorize.net's homepage showing a dark blue background with product screenshots and bright blue and yellow elements.

Authorize.net (a Visa solution) is a payment service provider that supports mobile payments, phone payments, and ACH. They also provide a card reader for in-person payments and support online purchases. 

Other features offered by Authorize.net include: 

  • Simple checkout button.
  • Recurring payments.
  • Digital invoicing.
  • Advanced fraud detection.
  • Optional merchant account bundle.
  • And more.

Adyen: Robust Financial Technology Platform

A screenshot of Adyen's homepage, an option for those looking for international payment gateways or Stripe alternatives.

Adyen is an end-to-end solution for payment processing, data, and financial management. In addition to payment processing, Adyen offers features such as: 

  • Virtual and physical card creation.
  • Tools to optimize traffic in real time.
  • Fraud detection.
  • Automated dunning.
  • Business bank accounts for your users.
  • And more.

Amazon Pay: Payment Service and Order Fulfillment

Screenshot of Stripe alternative Amazon Pay's homepage, white with black text and a photo of a woman overlayed with a yellow Amazon Pay button.

Amazon Pay lets your customers use the payment information already stored in their Amazon account on your website. You can use Amazon Pay as a stand-alone payment solution without becoming an Amazon Marketplaces seller — or you can easily use Amazon Pay on your own website and become an Amazon merchant (which gives you the option for fulfillment by Amazon).

Amazon Pay includes: 

  • Optimized checkout flow (modeled after Amazon’s own).
  • Co-marketing campaigns.
  • Self-service reporting dashboard.
  • Fraud protection.
  • Easy integration tools.
  • And more.

Note: With FastSpring, your customers can pay using Amazon Pay and many other payment methods. 

Need a Stripe Alternative for Your SaaS, Software, Video Game, Mobile App, or Other Digital Product?

Let FastSpring help!

FastSpring lets you manage every aspect of global payments from one platform — without managing tons of different software solutions. We shoulder the liability for online transactions and take the lead on VAT and sales tax management, regulatory compliance across the globe, and much more for you. 

If you’re looking for a Stripe alternative to help you grow your business internationally, we can help. FastSpring provides an all-in-one payment platform for SaaS, software, video games, mobile apps, and other digital products businesses, including VAT and sales tax management, payment localization, and consumer support. Interested? Set up a demo or try it out for yourself.


This post was originally published in January 2023 and has been updated.

The post Stripe Alternatives for 2025: In-Depth Guide and 8 Options appeared first on FastSpring.

]]>
FastSpring Brings Global Growth Tools to TNW Conference 2025 https://fastspring.com/blog/events-the-next-web-2025/ Thu, 12 Jun 2025 21:07:21 +0000 https://fastspring.com/?p=30442 Join FastSpring at TNW Amsterdam, June 19-20. Booth 26. Learn how to expand globally w/ localized payments, tax compliance, & subscriptions.

The post FastSpring Brings Global Growth Tools to TNW Conference 2025 appeared first on FastSpring.

]]>
FastSpring is heading to The Next Web (TNW) Conference 2025 — and we’re bringing clarity to complexity for SaaS companies and digital product creators everywhere.

This June 19-20, Amsterdam transforms into the global epicenter of innovation as TNW Conference takes over the industrial-chic NDSM Wharf. Join 10,000+ founders, tech leaders, and growth experts for two days of groundbreaking insights, bold visions, and transformative connections. At Booth 26, FastSpring is showcasing how ambitious digital businesses can scale globally without drowning in operational complexity.

The digital economy has never been more accessible — or more demanding. Today’s SaaS companies face a paradox: While technology has made it easier than ever to reach customers worldwide, the operational requirements of global commerce have become increasingly complex.

Consider the landscape:

  • Regulatory Complexity: New tax laws emerge monthly across 190+ countries.
  • Payment Fragmentation: Customers expect 40+ local payment methods.
  • Subscription Sophistication: Modern buyers demand flexible billing, usage-based pricing, and seamless upgrades.
  • Gaming Revolution: Studios are embracing direct-to-consumer models to escape 30% marketplace fees.
  • Customer Expectations: B2B buyers now expect B2C-level checkout experiences.

FastSpring exists at the intersection of these challenges, providing the infrastructure that lets you focus on what matters: building exceptional products and delighting customers.

Where to Get Tickets

Still need tickets? Head over to the registration page to grab your ticket and get access to incredible speakers, unparalleled networking opportunities, and a networking app that will maximize your experience even more.

How to Connect With FastSpring

We invite all summit attendees to connect with our team throughout the event. Whether you’re looking to optimize your current monetization strategy or exploring new ways to engage with your player community, FastSpring offers the expertise and solutions to help you succeed in today’s competitive gaming market. Schedule a demo now or at any time in Amsterdam in person.

FastSpring is how SaaS companies and gaming publishers sell online in more places around the world. We handle every payment need from subscription management to tax collection, remittance and more so your business can go farther, faster. We’re also the leading merchant of record for global software companies — powering over a billion dollars in worldwide transactions every year. We’ll manage your checkout, VAT and sales taxes, compliance, and more, freeing you to focus on what you do best: building great software. To learn more about how FastSpring is Powering the Digital Economy®, sign up for a free account or request a demo today.

The post FastSpring Brings Global Growth Tools to TNW Conference 2025 appeared first on FastSpring.

]]>
How Excire Simplified Their International Software Sales (and Taxes) With FastSpring https://fastspring.com/blog/how-excire-simplified-their-international-software-sales-and-taxes-with-fastspring/ Fri, 02 May 2025 17:46:56 +0000 https://fastspring.com/?p=30363 The Excire team found that FastSpring greatly simplified international payments and sales taxes and set them up for continued global growth.

The post How Excire Simplified Their International Software Sales (and Taxes) With FastSpring appeared first on FastSpring.

]]>
As your software business grows large enough to expand into more countries or regions, the system — or multiple systems — you use to sell it can become more and more complex. 

Or, you can simplify the system with one global merchant of record. 

When Excire became a popular enough product line that it was being sold in both Europe and the U.S., Managing Director Mathias Martinetz and CTO Thomas Käster knew their current online checkout setup — having one solution for Europe and one for the U.S. — was not efficient. 

Mathias Martinetz and Thomas Käster wearing white Excire sweatshirts in front of a light brick wall.

“And we had a lot of manual work,” Mathias says. “Basically, each and every sale had to be manually organized and given to our tax advisor.”

And if they wanted to continue scaling their business and expanding into more countries, they needed a better system. 

That’s when they discovered the merchant of record model and, subsequently, FastSpring.

Completely switching online commerce systems can be daunting, especially when switching from one type (such as a very basic online checkout or web shop system) to another (such as a comprehensive merchant of record). But Mathias and Thomas did their due diligence, and they’re glad they found FastSpring.

Here’s what they did to ensure they’d find the right merchant of record (MoR) and have a successful transition.

Are you looking for a merchant of record that will partner with you to grow your business internationally? FastSpring provides an all-in-one payment platform for SaaS, software, video game, and other digital goods businesses, including VAT and sales tax management, payment localization, and consumer support. Set up a demo or try it out for yourself.

Excire Needed a Simpler Payments and Taxes System

Excire is an award-winning line of photo and video management software products that help photographers organize, find, and cull their photos at lightning speed. With Excire Foto as a standalone product or with Excire Search as an Adobe Lightroom plugin, photographers can leverage meta data and AI for keyword search, facial recognition, grouping shots, image analysis, and more.

Screenshot of Excire software showing menus on each side and a photo of a brown-haired woman wearing yellow tinted sunglasses.

As the product line grew in popularity and the team was able to move from only selling Excire in Europe to selling it in the U.S., they found themselves with two separate shop systems. 

“As we were growing and wanted to grow more, we were looking for a solution that would allow us to have only one shop, but that could also be used around the world,” Mathias recalls. 

Headshot of Mathias Martinetz with his name and job title Managing Director above the Excire logo.

Thomas adds, “We encountered some technical challenges, which is to be expected when managing an ecommerce system independently. Additionally, we faced issues with our tax workflows, which were no longer sufficient to support the level of growth and scaling we had already achieved.”

Headshot of Thomas Käster with his name and job title Chief Technical Officer above the Excire logo.

They appreciated the value of offering localized currencies and payments to buyers, but as it was already unwieldy to have two online shops for two regions, they didn’t want to add more shops as they moved into new regions. They also knew they didn’t like managing all the sales taxes the way they had been, and that more growth would only make that even more difficult.

There had to be a better way, so they started looking around to see what other companies were using. 

Mathias and Thomas reached out to some contacts of theirs at another software company, and that company referred them to FastSpring. 

“The interesting thing for us is,” Thomas says, “if I see similar companies using FastSpring in the same way as we’d like to use it, that’s a good sign that FastSpring was the right decision for us.”

Without having to think for very long about it, they can easily list a handful of software companies in their industry who also use FastSpring, which makes them even more confident about their decision. 

Talk to Similar Businesses About THEIR Experiences

Besides just noting that many businesses like theirs were already using FastSpring, Mathias and Thomas recommend asking them for more information about what it’s actually like to use a particular payments platform or merchant of record. “Get their experience,” Mathias advises. 

Thomas adds, “In the end, you never know, right? When you decide to switch off an existing technical system completely and onto a completely new system, you never know if it will be the right decision.” So besides just observing what your own competitors are using, reach out to businesses you’re friendly with and “Talk a lot to the people.”

Pay Attention to the Responsiveness of Each MoR’s Team as You Begin Reaching Out

Excire was fortunate to have a very short list of possible ecommerce solutions, as FastSpring seemed like the clear winner just based on how many other companies were already using it. 

But if you have a few options on your list — or if you want to validate that the one you’re leaning toward is eager to meet your needs – you can learn a lot from how a possible vendor’s team responds to your initial inquiry. 

This may seem counterintuitive, as most people and organizations will be eager to ensure the first experience you have with them is excellent. And Thomas says that it’s not always easy to make a decision based on those first impressions. 

But he clarifies, “Even from a first impression, the FastSpring team does a better job than the competitors.” The Excire team had also approached an MoR company that had a team based in Germany, so Thomas and Mathias could speak with that team in their native language. 

“But the first contact with them was not as good as the first contact with FastSpring,” he continues. Besides the technical requirements he wanted to ensure were met, “The way the team took care was very important for the final decision to go with FastSpring.”

Define Your Needs Clearly and Communicate Them to Potential Vendors

Observing competitors, talking to similar businesses, and initiating contact with various vendors are all important parts of the external planning phase when evaluating a new ecommerce system, but there’s an important internal planning phase too. 

As Chief Technical Officer, Thomas is very hands on with the technical aspects of their various systems, so he knows how important it is to know what you need and communicate that to potential payments platforms. 

He explains it this way: “Summarize and describe your own necessities, or the aspects that are most important to you. Especially, what are the requirements of such an ecommerce system? When you explain it in the best way you can, then you’ll get the best, most concrete answer from the FastSpring team.”

There were several sessions back and forth between the Excire team and FastSpring as they worked through the technical details of what their team needed and how FastSpring could meet those needs. Thomas said those sessions helped them “come to the point where we were really sure about our decision to go with FastSpring.”

He continues, “I guess this is something every company needs to do on its own first: to check all the aspects that are important to them, and to communicate those aspects in a clear manner.” 

Besides wanting to combine their international payment systems into one simpler system that could continue expanding their global sales, Thomas and Mathias were also looking closely at competitive pricing, payment failure systems, ease of international pricing management, newsletter systems, subscription capabilities, and integrations. 

The Excire team also found FastSpring’s pricing better than the other merchants of record they evaluated.

Upgrade to a Merchant of Record Like FastSpring

It was looking at and talking to companies similar to Excire that tipped off Mathias and Thomas to the merchant of record model as the answer to their global payments and taxes question.

“That’s how we found out that the solution could be a merchant of record,” Mathias says. “So that’s how we got more into it and found out that there is an advantage: that all tax and currency related activities can be handled much, much easier than if we would do it on our own.”

Switching from separate systems for different regions to one global solution would be an upgrade, but finding an ecommerce model that also managed sales taxes and VAT for Excire sales would provide an even greater improvement to their operations.

Screenshot of Excire checkout on FastSpring with three items in cart on left side and checkout fields on right side.

FastSpring has also made many of the smaller, day-to-day management tasks easier. For example, Mathias says that “We can easily define prices worldwide; that’s quite smooth. And it was helpful to implement a subscription model, right, Thomas?” 

“Yeah, that’s for sure,” Thomas adds.

When Excire initially launched on FastSpring in 2023, they ran into some challenges with email and analytics integrations. The FastSpring team worked hard to meet Mathias’ and Thomas’ needs, prioritizing additional help for the Excire store integrations and finding ways to meet their needs.

Thomas says of their more recent subscription launch, “This kind of integration was very easy.” He says that their integration requirements may be more complicated to fulfill than some companies’, but that the communication between FastSpring and their licensing vendor has been “really easy and robust.”

Partner With FastSpring to Simplify Your International Software Sales

Are you looking for a merchant of record that will partner with you to grow your business internationally? 

FastSpring provides an all-in-one payment platform for SaaS, software, gaming, and other digital goods businesses, including VAT and sales tax management, payment localization, and consumer support. 

Set up a demo or try it out for yourself.

The post How Excire Simplified Their International Software Sales (and Taxes) With FastSpring appeared first on FastSpring.

]]>
Navigate Global Markets With FastSpring at GTC Shenzhen 2025 https://fastspring.com/blog/events-gtc-shenzhen-2025/ Fri, 04 Apr 2025 13:00:00 +0000 https://fastspring.com/?p=30278 FastSpring is a sponsor at Global Traffic Conference (GTC) Shenzhen 2025, a global games industry event series, on April 24-25.

The post Navigate Global Markets With FastSpring at GTC Shenzhen 2025 appeared first on FastSpring.

]]>
FastSpring is excited to announce our participation as an exhibitor at the Global Traffic Conference (GTC) 2025, taking place on April 24-25 at the Shenzhen Convention & Exhibition Center. This premier event offers an unparalleled opportunity for SaaS and software companies aiming to expand globally, as well as for video game studios and publishers seeking international growth.

GTC 2025 is recognized as one of China’s largest gatherings in the cross-border and overseas sectors, focusing on key areas such as gaming, apps, DTC brands, and technology. The conference serves as a dynamic platform for connecting with top-tier developers, brand representatives, service providers, and investors from around the world. Attendees can expect in-depth discussions on the latest trends in brand globalization and sustainable growth strategies, making it an invaluable event for companies looking to establish or strengthen their international presence.

Where to Get Tickets

Still need tickets? Head over to the registration page to grab your ticket and get access to insightful speakers, unparalleled networking opportunities, and a wealth of resources designed to maximize your experience.

How to Connect With FastSpring at GTC Shenzhen

Stop by our booth or connect with the team via the event app or through our official WeChat account. Schedule a demo now or at GTC Shenzhen in person. We’re looking forward to meeting you at GTC 2025 and exploring how we can help you achieve your global expansion goals!

FastSpring is how gaming publishers sell in more places around the world. For nearly two decades, FastSpring has been a trusted payment provider you can use to sell games or in-game items on your website, web shop, or embedded directly into your game with fully customizable and branded checkouts just for you. FastSpring allows you to offload the complexity of global payments, sales tax and VAT compliance, player payments support, and many other aspects of payments management. Spend less time managing your payments and compliance and more time making great games! To learn more about how FastSpring supports game developers, visit fastspring.gg/.

The post Navigate Global Markets With FastSpring at GTC Shenzhen 2025 appeared first on FastSpring.

]]>
EP30: How oeksound Took Their Audio Plugins Business Global https://fastspring.com/blog/how-oeksound-took-their-audio-plugins-business-global/ Thu, 06 Mar 2025 15:00:00 +0000 https://fastspring.com/?p=30189 Hannes Andersson of oeksound explains how pricing & trial options and a focus on good UX are key for selling audio plugins internationally.

The post EP30: How oeksound Took Their Audio Plugins Business Global appeared first on FastSpring.

]]>
When the first oeksound plugin, Soothe, was created in 2016, creator Olli Keskinen and his friend Hannes Andersson were studying music technology to become recording engineers. And as Hannes puts it, they weren’t in the plugin industry or experienced with software ecommerce when Olli’s plugin quickly became popular, thanks to a simple post on a popular online audio forum. 

Today, oeksound is a global software company in the audio and video space, with their plugins used by some hugely recognizable names in the music industry.

To learn more about how they did it, listen for the full insights into:

  • How oeksound’s pricing and trial options make their products more accessible to more users.
  • Why the user experience and user feedback is so important for improving and marketing plugins.
  • Why a frictionless purchase process is such a key focus for oeksound to continue expanding their sales.

To hear all this and more about oeksound’s experience with taking their plugin business global, listen or watch now!

Jump to video.  |  Jump to transcript.

Podcast Full Interview: Audio

Listen on Apple Podcasts
Listen on Spotify

Listen online or find it on more podcast services.

Podcast Full Interview: Video

Transcript

Jesse Paliotto (00:04)

Hello everyone and welcome to Growth Stage, a podcast by FastSpring where we discuss how digital product companies grow revenue, build meaningful products and increase the value of their business. I’m your host Jesse Paliotto. I support the digital product community as part of my role with FastSpring and I love being able to hang out with just phenomenal people here on the Growth Stage podcast. And today the phenomenal person I get to hang out with is Hannes Andersson, CEO at oeksound. And we’re going to talk a little bit about how they build a globally recognized brand in this audio plug-in space that they operate in, take a little bit of a dive into their journey and their expansion and challenges, opportunities that they encountered along the way. So, Hannes, thank you so much for doing this, man. Really, really excited to hang out for a few minutes with you here today.

Hannes Andersson (00:49)

Thank you for having me.

Jesse Paliotto (00:52)

Hannes, maybe a good place to start. Could you give folks a little bit of context? Can you briefly describe what oeksound does, especially for people who may not have any exposure to the audio industry?

Hannes Andersson (01:04)

Yeah, sure. So oeksound is a software company and it’s a software company active within the music and audio space. When it comes to tools that we use when mixing, recording, producing music or then editing audio in post-production for a film or maybe even something like a podcast, a podcast like this. So we have a few

Jesse Paliotto (01:30)

Mm-hmm.

Hannes Andersson (01:33)

plugins is what we’re calling them. We call them plugins because they work within these larger software packages that exist, production programs like Pro Tools, Steinberg Cubase, Ableton Live, Logic, and even GarageBand that we can find on any Mac computer. So these plugins are these smaller tools that you use inside of software

Jesse Paliotto (01:57)

Mm-hmm.

Hannes Andersson (02:03)

packages that you can use them to manipulate or enhance or just better your audio.

Jesse Paliotto (02:12)

And you guys have three plugins or maybe you can just give a quick sketch of what oeksound offers. I think you’ve got a few and maybe a new one. Yeah.

Hannes Andersson (02:22)

Yeah, so right now we have three studio plugins. So what we mean by studio is that they’re used in more of a studio setting, maybe be this bedroom producer or a lone pod podcaster or maybe a big commercial studio where they make music. So we have three plugins called Soothe or Soothe 2 is the current version of that. And we have Spiff and then we have Bloom.

And then on the live side, we also have a live version of Soothe 2, which is kind of Soothe 2 quickly became our kind of most popular plugin and that was the product that really took off for us. so one and a half year ago, we released it for live use. That meaning that it’s also now being run on shows on, for example, huge…

for huge artists like Harry Styles or Red Hot Chili Peppers and those kind of artists. So it’s also being used in that kind of setting.

Jesse Paliotto (03:24)

wow.

that’s amazing.

Yeah. In terms of how you sell them, are they standalone or is there a subscription side to it? And I ask because for folks that listen to the Grow Stage podcast, a lot of what we end up talking about is sort SaaS businesses where they’re kind of building subscription model. But I think you might have a few options there. Yeah.

Hannes Andersson (03:50)

Exactly. Yeah. So oeksound is actually pretty much a very, very traditional e-commerce business. And so we sell perpetual licenses and that are perpetual. I mean, those are every individual product is bought individually. Currently we don’t have a bundle of any sort. And that’s how we’ve been doing it for…

a while now and that’s how the plugin industry has been working for most of the time. Subscriptions are mostly, you find subscriptions mostly when it comes to larger companies that might have 30 to 200 products out there and so there’s a large selection and for somebody that doesn’t know where to start they might just like jump on a subscription and then start using the tools that they need.

But otherwise, have our products, our studio products, our perpetual licenses range between $149 and $199. But a new thing that we did last year during summer was actually launch our rent to own pricing, rent to own way of purchasing our products. And that’s a very, very popular way.

Jesse Paliotto (05:00)

Mm-hmm.

Hannes Andersson (05:13)

or it’s been for us very, very popular. And I don’t see a lot of other companies doing it. There’s some availability on a website called Splice where you can rent your own products. And essentially what that means is that it’s kind of a payment plan, but you never commit to pay the full sum. And so you can just rent the plugin, but one month at a time making a payment. And after

Jesse Paliotto (05:35)

Mm-hmm.

Hannes Andersson (05:42)

I think in our case after 18 months, then you get your perpetual license and then you own it for the rest for perpetually after that. And I think that really helped us grow from from kind of more globally to countries where, for example, two hundred dollars is a lot and you might not actually need the plugin.

every month, you might not just need it for an album that you’re doing this month or next month and so then you rent it for two months and then the next time you rent it for two months and then after let’s say multiple years you get a perpetual license when you’ve gone through that 18 times.

Jesse Paliotto (06:28)

That’s amazing. Like what a very thoughtful sort of win-win scenario for people using it, like you said, where they get to use it when they need it. But as a company, you get the full kind of value that you need out of the purchase eventually. Like it’s timed out. I know, you know, there’s companies that

provide sort of this payment plan option. know, Klarna does this, Affirm does this, and buy now, pay later is the phrase that is often used in the industry for that. But that comes with, you know, finance charges and you’re committing to the full purchase up front. So it’s very interesting. So like when you guys are doing this, is it the same price? Like if it’s a $200 plug-in?

and I do the payment plan, does it become a $250 purchase at end of the day or you’re just, you’re kind of covering that financing cost yourselves.

Hannes Andersson (07:20)

We’re covering that finance cost ourselves to the most part. The end sum gets for the customer, the end sum might be somewhere like $5 more, $5, $7 more. So it’s pretty close to the original sum. so we just made sure that at least at the rental price, you don’t get it cheaper than for the full price.

Jesse Paliotto (07:32)

Yeah.

Right.

Yeah.

Hannes Andersson (07:46)

But then again,

we wanted it to be as close as possible to the full price. And that has a lot to do with how kind of our ethos work with our plugins. We are very confident in how good our plugins are and that they’re useful and that users find them useful. And also if they don’t find them useful, then I don’t see any need for…

our users to buy them and just like having that as the ground rule, make something useful and sell it. And if it’s not useful, then we’re going to know about it. so for example, yeah, go ahead.

Jesse Paliotto (08:18)

Mm-hmm.

It’s funny how like

that can sound almost like obvious when you say it out loud, but unfortunately there are things I’m sure all of us have bought that you’re like, why did I buy this? This sucks. Like this was not worthwhile. It didn’t actually do what I thought it was going to do. So it feels, I know what you’re saying sounds like this should be obvious, but it actually is like to hold yourself to the standard that we’re going to sell something that’s so good that somebody is glad that they paid us for it. Like that’s a pretty, pretty cool standard to be living up to.

Hannes Andersson (08:58)

Yeah, it’s pretty interesting because you see a lot of kind of race to the bottom pricing wise in the industry going on right now. And that kind of, I feel a bit unsure about what that communicates about the company behind the pricing. When for example, you see something like a bundle costing something like $899 and then it’s like

Jesse Paliotto (09:04)

Mm-hmm.

Mm-hmm.

Hannes Andersson (09:27)

crossed over and now you get it for $40 or something. When I see that and I’m am I supposed to am I like supposed to be happy when I see that I’m not like yes that is a good deal but why would anyone buy that for $899 to begin with then either either your your products were never that valuable or they were actually never that useful they were never actually that worth it.

Jesse Paliotto (09:31)

Yeah.

Hannes Andersson (09:57)

or then you’ve kind of like, I don’t know, there’s might be some other. Yeah, yeah. And so kind of having all of that. And I think also something we started off with our plugins and with our products is that they all have 20 day trials and these 20 day trials are just, they’re not restricted in any other way that they’re gonna stop working at after 20.

Jesse Paliotto (10:02)

Or they were, and why are you marking it down to $40?

Hannes Andersson (10:27)

days. So you get all the features that the plugin has and you can use that plugin. So for example, if you’re a professional mixing engineer, you can actually use the trial to make money during the trial so that you can then invest and get the plugin if you like it. And so having that honest, extremely transparent and honest discussion with the users of here is the plugin, you can use it for three weeks.

Jesse Paliotto (10:40)

Mm-hmm.

Hannes Andersson (10:55)

decide if you like it or not if you find it useful You can tell us you can let us know if you don’t understand it if you do understand it because we are all at different levels When it comes to users where you can be a super pro user and still don’t understand how it works So you can be a bedroom producer just starting off and getting exact getting immediately what it does. There’s so many different users available, but one thing that I like always to kind of

repeat is that our customers are not stupid. They’re never stupid in any way. We don’t have to ever tell anyone why they should kind of buy our plugin, but we could tell them why they should try it. I mean, and then every single user is going to make a purchase decision on their own. We’re never going to have to tell anyone. And we’re never actually in our marketing. We’ve never asked anyone to buy our product.

Jesse Paliotto (11:46)

Really? We should try it, right?

Hannes Andersson (11:48)

Yeah, I don’t think we,

I don’t actually think we’ve ever used the word by now or something like that as a call to something, something like that. I think we’ve, of course, when we have a sale, we direct people like we have two sales a year. And so usually Black Friday and then a spring sale around spring. That’s usually how we do it.

Jesse Paliotto (11:54)

Yeah, yeah.

Yeah.

Hannes Andersson (12:14)

We never know like how we’re gonna change it up or if we’re gonna do something different, but that’s been kind of the way we’ve done it so far. We let people know, people that are on our mailing list two weeks before that we’re gonna have a sale. So if anybody’s been waiting around, that’s usually the only reason why they’re on our mailing list is to know if we have any new product or run there’s a sale. So, and then we tell everybody beforehand and then they…

take care of telling everyone else like word of mouth is everything in this industry. It’s like 95 % of the marketing is done word of mouth. And after that, they just kind of that’s like the only time where we say, okay, here’s the link where you can buy the plugin for this price now. And so you can kind of like that’s because it’s a sale. Of course, it’s now it’s about now it’s about buying it, but that’s something we do.

Jesse Paliotto (13:05)

Yeah, yeah.

Hannes Andersson (13:08)

twice a year and then we’re back to our normal programming.

Jesse Paliotto (13:12)

That’s, love that in terms of like leading with value, like we’re gonna just give you value. And for folks listening who may not have kind of ever worked in sort of the creative side of software, my exposure is that limiting the ability to export final products was always like the trick to get you to, try the creatives, whether it’s photo or drawing or music. And then when you finally create something and you wanna export it, now we’re gonna use that as the hook to force you to pay us money. Like, you actually want that track exported.

And so to actually give them full use is a big deal, but it does lead with value. it, it strikes me that, it, it creates, it builds it into a workflow, which is very important. I would expect for this user base is that they’re creating things. And so the ability to create tool chains of software that work. And if it works, then you’re built in going forward. And now I want to buy it because I have a proven workflow that created a great thing. Is that, is that a fair analysis or.

Hannes Andersson (14:09)

Yeah,

exactly. So a really good example is we talk about something like vocal chains or master chains when we talk about these tracks, these audio tracks that we have in our software. So vocal track is obviously a track where you have your recorded vocal and then you put these plugins on in order to make that plugin, that vocal sound professional and make it sound ready, ready for the radio or ready for the streaming service where you’re going to put it.

And so there we have our plugins, but also plugins from probably 20 other different companies. so they’re constantly changing out these tools that they have there to get to a better result than earlier. Every single engineer is constantly tweaking and constantly changing out things there. And so when they trial our product, our plugin,

Jesse Paliotto (14:48)

Yeah.

Hannes Andersson (15:05)

put it there, maybe at the end of the chain or maybe at the start of the chain. And then they understand or they kind of like, yeah, get to the point where it’s like, this is actually better than before. And then after a while, let’s say after three weeks, they open up a project where they have used it. And then that’s when they’re going to notice that, okay, whoa, my trial has expired here. And then that purchase decision is going to feel so natural. It’s going to…

Jesse Paliotto (15:18)

Mm-hmm.

Hannes Andersson (15:35)

feel like a no-brainer for them at that point because, I’ve already used it on like two, three tracks and I know I’m going to use it again. This is an obvious purchase decision. And that purchase decision, especially if it’s done at full price, for example, which is not common in the plugin industry that you like ever buy something at full price, but our plugins do sell a lot at full price. What I find or what I believe

is that you get a user that is so proud of their purchase. They feel like they have made an investment because it’s already in their workflow, so to say. It’s already part of their toolbox and they’re really happy about the decision that, okay, I’m actually know that I’m going to need it. And then when you have that kind of a user, that kind of a customer,

Jesse Paliotto (16:11)

Mm-hmm. Yeah.

Hannes Andersson (16:34)

they’re going to tell everyone. So again, word of mouth, again, we have the perfect customer. And again, if you compare that to somebody that sees an email that says flash sale today only, and then there’s usually a timer that says like 72 hours. I don’t know how that’s today only. then maybe, maybe. then

Jesse Paliotto (16:36)

Yeah.

I don’t know, multiple time zones? No, I don’t know.

Hannes Andersson (17:04)

they buy it during that flash sale, they’ve never seen that plugin before, they use it once in their project, don’t understand it, don’t understand the value. It might be a super product, it might be great, but they just don’t put it on the right place or don’t use it right. And then they feel bad about the plugin. And so next time they’re in a room with other engineers or they’re hanging out with other music creators,

Jesse Paliotto (17:14)

Yeah.

Hannes Andersson (17:32)

somebody goes, hey, have you tried that plugin? And they’re gonna go, yeah, I tried it. I actually bought it. I know it, we use it. Yeah. And compare that to, oh, so do you use Soothe? It’s like, yeah, I use Soothe. I actually bought it like a few months ago. It’s on every track. Love it. Recommend it to everyone. Like that’s the difference. You have two completely different customers, but…

Jesse Paliotto (17:40)

Yeah, you’re get negative word of mouth because the experience was so bad with it.

Hannes Andersson (18:00)

I think the other plugin probably also deserves a chance. It’s just that that funnel has become so like, kind of like FOMO based that you just try and grab, yeah, it feels more like a money grab. And then if you like it or not, that’s up to you as the user. You’re not giving them a chance to even like question you.

Jesse Paliotto (18:04)

Right.

Mm-hmm. Yeah.

Yeah, I mean, it reminds me of sort of the age old wisdom that people value what they pay for and they don’t value stuff that’s free. Like, which is, you know, I remember hearing that as a kid, like I could give you this, but you’re you’re just going to throw it away. If you’ve got to save up your money and buy it, you know, what’s bike or something like, then you’re going to you’re going to be super proud of it and you’re going to you’re going to show it off. There’s almost like a a personal investment, which the other thing that was striking me while you were kind of describing that is the picture in my mind a little bit is of like

somebody who builds things with their hands, like they’re building furniture or something, and they have all these tools. And a big part of those tools and what they choose to buy is their ability to successfully use it. And so kind of, it’s not just, bought this thing as a status symbol. Like, no, I bought it because I actually have to learn how to use this thing to make cool stuff at the end of the day. And so you’re kind of building the learning pattern too at the same time, which kind of stands out to me.

Hannes Andersson (19:18)

Yeah, exactly. And we’re trying to make that as easy as possible. So both Soothe2 and Spiff, they have both integrated tutorials. So what that means is kind of like, this is something you might see in SaaS websites, right? So you have like the pop-up screens that you show, and then you might have a test project going on and stuff like that. That’s not something you

see within a plugin within a DAW. That’s something very unique, but we have that going on. And so you can open up a small tutorial that is going to go through the parameters for you. And then you also have some test audio material running through the plugin that you’ve installed together with the plugin. So kind of like you have some demo material in a way. I mean, yeah. So that way you kind of, you don’t need to,

Jesse Paliotto (20:09)

Yeah, to kind of get you started. Yeah.

Hannes Andersson (20:15)

read the manual, you don’t need to go to YouTube and watch some videos and get stuck in a rabbit hole on YouTube. You can just stay within your DAW, within your project, go through that tutorial and when you’re done, you’re back where you started and you’re still in your own project and you’re still using our plugins on your music. And so that’s something very unique in the plugin space, even though that’s something we pretty much took from, again, yeah, something more like the SaaS side.

Jesse Paliotto (20:40)

Yeah,

yeah. The just to quickly ask you said something a couple paragraphs ago that was interesting. How many you said there might be 20 pieces of plugins or software on a given track that you’re working on. Is that the right number? I’m curious. Like if I’m a music producer and I realize this is a hard question because there’s everyone from bedroom producers to professional, you know, working on, you know, Taylor Swift level kind of producers. But how many?

How many plugins or pieces of software are on a given song or album?

Hannes Andersson (21:15)

Yeah, I think if we start from the track level, I think Pro Tools, like the default number of inputs or kind of like plugin inputs you can have there is like five plus five, so 10. So usually if that audio track is well recorded material and you’re not in a genre where you have very

Jesse Paliotto (21:33)

Mm-hmm.

Mm-hmm.

Hannes Andersson (21:45)

over-processed material, then you’re going to be fine with an EQ, an equalizer. That might be the only thing you have there. Another thing is usually you go for something like EQ compression and maybe saturation or distortion, and then you have like three. But I’d say kind of like when you go for, when you have those more, let’s say,

Jesse Paliotto (21:51)

Mm-hmm.

Hannes Andersson (22:10)

music tracks, the instruments and those tracks you might have somewhere between like one and five plugins. And then when you have your most important tracks, like a lead vocal, for example, like the main vocal that everybody is listening to, then we’re probably up. If it’s a, and if we say the genre is pop or EDM, then you’re definitely going to have like seven, eight plugins on that.

Jesse Paliotto (22:15)

Mm-hmm.

Hannes Andersson (22:37)

And also that track being sent to some buses that also had the reverbs and the delays and everything like that. So there you have five, maybe some parallel tracks as well. So there you have five plugins.

Jesse Paliotto (22:49)

So I’m giving song,

this is all multiplied, right? So there was the five on the one and the five on the other and the seven on the vocal.

Hannes Andersson (22:52)

Yeah. Yeah. Yeah.

So, so in a, so in a, in a production project where the producer has produced a track, you’re definitely going to find, let’s say, I don’t know, 80 plugins and on a track, on a pop track. then that all already gets like committed. And so you kind of like print the tracks as they are. And that goes to mixing and the mixing engineer adds 40 plugins more. And so this is the way, this is just the way we manipulate, manipulate audio.

If we are not editing it, so like just cutting and pasting and copying and doing stuff like that, doing our fade ins and fade outs, the other way we process our audio is with plugins. And so that’s kind of the main way that we go about. And so yeah, we can have anywhere from like 20 plugins to 200, depending on the project. And don’t get me started on cinematic projects like for film, for cinema, because those projects might have…

Jesse Paliotto (23:48)

yeah.

Hannes Andersson (23:51)

If it’s for a whole feature film, you might have 2,000 tracks.

Jesse Paliotto (23:56)

mind-boggling. So let me use this as sort of a I’m gonna use that as a turn into a little bit different sort of question. So obviously a lot of competition in this industry right like there’s a lot of plugins out there it’s not like you know there’s you know five main ones that’s what everybody use I mean maybe there are five popular ones but there’s a lot out there. And I believe you guys are based in Helsinki and so how do you do how did the company and how did it think about going global?

Hannes Andersson (23:57)

Yeah.

Yes.

Jesse Paliotto (24:25)

Because if I’m creating software, I’m in Helsinki and I want to suddenly take this to the world, there’s a lot of other plugins that people can pick from. How did you get started and how did you do that? I know that’s a very broad question, so please feel free to take that wherever you want to take that.

Hannes Andersson (24:38)

Mm.

Yeah, yeah. I mean, I can start really shortly talk about the history. So the company was founded by Olli Keskinen. So he’s a dear friend of mine. were both studying at the Sibelius Academy. We were studying music technology. So we were both becoming recording engineers, mixing engineers in that sense, or was at least dabbling in that. And yeah, got to do that a lot.

Jesse Paliotto (24:46)

Yeah.

right on.

Hannes Andersson (25:10)

Oli made the first version of Soothe pretty much on his own. Like that’s a solo project. And not only did he made the plugin, but he also made the website. He made the web store. that was like a WordPress, WooCommerce based store back then. And he also made the copy protection for the plugin back then. And that’s both now both the store of course is FastSpring now and then the

Jesse Paliotto (25:27)

Mm-hmm. Yeah.

Hannes Andersson (25:40)

Copy protection is also done by another company that we then, or we implement their technology into our plugins. But yeah, that was all made by one person in November, 2016. And then we’re not in the plugin industry or in the, guess, in the software e-commerce side, you’re not thinking about going global. Anything is by different, by like start by default, it is global. And so he…

Jesse Paliotto (26:05)

Yeah. Yep.

Hannes Andersson (26:10)

started the web store and he loaded up the plugin and then he just wrote something on one of the more popular forums in the audio space and said that, hey, I made a plugin. I hope you like it. Here you can buy it and here you can download and try it. And then it took off from there pretty fast for a single plugin done by a single person. And so pretty quickly he understood that he should be focusing on

Jesse Paliotto (26:27)

Yeah.

Mm-hmm.

Hannes Andersson (26:39)

squashing the bugs and making sure that the code is good. And so I jumped on the business side, on the marketing side, or mainly focusing on marketing, getting more people to know about it. And Tommi Gröhn as well jumped on as another DSP engineer is what we call it. So digital signal processing. that’s, those are kind of like where all the code starts. It’s the algorithms that do the processing for the audio. And so we became kind of like the core

Jesse Paliotto (26:50)

Yeah.

Hannes Andersson (27:07)

team and now we are now the partners of oeksound but that’s where I mean my how it started for me was actually just cold emailing reaching out to Grammy winning engineers and a lot of them answer I mean they’re not I mean engineers are not that kind of they’re not that secluded and they’re not there a lot a of them like when people reach out to them and

Jesse Paliotto (27:23)

Yeah.

Mm-hmm.

Hannes Andersson (27:34)

especially like when somebody has a plugin that they haven’t tried before because we’re all geeking out about plugins. so, in a way, that just kind of shows that we were all musicians, recording engineers, mixing engineers, and just kind of had, we were all users of this plugin as well. So reaching out and just getting to geek out with other people about the plugins that we have was the best kind of marketing, again, word of mouth, getting the word out there.

Jesse Paliotto (27:37)

Yeah. Yeah. Mm-hmm. Yeah.

Hannes Andersson (28:02)

was the way I went about it. And then at some point we released Spiff our second plugin in 2018, grew the company to up to about six, seven people. And then Soothe 2 we released in 2020 before COVID really hit. So that kind of like, there was a lot of things happening there. Obviously COVID was good for software, COVID was good for music in general. When it comes to the business side,

Jesse Paliotto (28:22)

Mm-hmm.

Hannes Andersson (28:32)

horrible event, all in all, but just…

Jesse Paliotto (28:34)

Yeah, but yeah, so many people had to invest in tools and so many people were making music at home because they couldn’t go play the gigs.

Hannes Andersson (28:38)

Yeah. Yeah, exactly. They were making music at home. They couldn’t go to a commercial studio and so they were recording in their bedrooms and something that Soothe, for example, was pretty much made for was to make cheaper microphones sound more expensive, cheap rooms sound more professional and all of that. it kind of got released and came out into the world at the perfect time.

Jesse Paliotto (28:56)

Mm-hmm.

Hannes Andersson (29:07)

in that sense. so Soothe two was for us, the plugin or the product that really, really took off and put us on the map. And after that, it’s been crazy. Everything changed after January, 2020. And that’s when we also understood that we need a better partner on the, on the e-commerce side and not maybe like trying to do all the e-commerce our side ourselves with the, with taxes and, and everything. And so that’s when

we started to look for other partners there and found FastSpring.

Jesse Paliotto (29:44)

Was there any particular headaches that you ran into or was it just you could see that it would help in the future or was there specific pain points where selling like the popularity that surged? Did it create kind of growing pains or?

Hannes Andersson (29:58)

Yeah, definitely created growing pains. think bookkeeping was, for example, just keeping books clean on like the different countries and having that going on correctly. It’s just having pretty much… We couldn’t focus as much on the marketing side when there’s a lot of like technical things that you need to take into account and bureaucracy and…

Jesse Paliotto (30:24)

Mm-hmm.

Hannes Andersson (30:27)

legal matters and stuff like that. so it was just like we’re a small company of and especially back and back then we were a small company where most of the founders of the partner was pretty young and like I haven’t worked at another company in my life. This is my kind of first company. And so in a way it’s not like we could have we had like a

Jesse Paliotto (30:47)

Mm-hmm. All right, on.

Hannes Andersson (30:55)

consultants or a CEO that have started like four different companies before and say like, yeah, this is just how you do it. I mean, and we never were a startup either. And so we’ve never thought like a startup. We’ve never had the kind of like the way of thinking. And so we were always just like this artisan, plugging company making these tools. And so I think…

Jesse Paliotto (31:15)

Yeah.

Hannes Andersson (31:24)

What I remember now, it’s all a bit fuzzy just because of how fast everything happened. I think it’s just we needed to be able to handle scale and needed to be able for customer support as well to be able to handle orders correctly and fast and something that also would work with our licensing system because

Jesse Paliotto (31:30)

Yeah, I’m sure. Yeah.

Hannes Andersson (31:53)

because oeksound and our licenses are handled by a third party in a way, and then fast spring. So there’s always this kind of like Trinity of actors when somebody buys a plugin or license to use our plugins. They buy it from us, they get a license, an activation code that they activate with pace with ILOCK is called. And then…

Jesse Paliotto (31:54)

Yeah. Yeah. Yep.

Hannes Andersson (32:19)

that’s what they receive when they’ve made the transaction over fast spring to us. And so, yeah, there’s always that going on. it’s a bit of a complicated system, but again, it’s perpetual licenses. So it’s one transaction for most and then rent to own, of course, then makes it again, a bit more complicated.

Jesse Paliotto (32:24)

Yeah.

Yeah, but I can imagine there’s, start making decisions like am I putting my developer time into solving that triangle of software integration or my building the next, you know, soothe or improving the next feature or whatever. And so, it sounds like a bit of it is sort of just optimizing what do we spend our time on versus what do we outsource to, you know, a partner who can potentially or hopefully solve it for us.

Hannes Andersson (33:05)

Exactly. Yeah. And to not have to worry about some percentages being off when it comes to VAT or something like that and not having to keep track of it that often at least. I’d say as well, most of our, the sales we do is kind of B2C. mean, there’s a customer, but that customer is often as like,

Jesse Paliotto (33:20)

Yeah.

Mm-hmm.

Hannes Andersson (33:35)

solo owned business. And so it feels like B2C for most parts, but it might be that it’s B2B. And that’s why always like, it’s like a lot of customers that’s always going to write off the VAT. There might have a code for VAT in Europe or then some other company ID for tax purposes. And then

Jesse Paliotto (33:37)

Yeah.

Yeah.

Hannes Andersson (33:58)

there are also B2B customers. So large companies like game companies or movie companies that are actual businesses that want to buy in larger volumes, for example. And so that’s something we’ve noticed with FastSpring that it doesn’t matter. There’s going to be a possibility. have the tools through FastSpring to offer what the customer wants and also to keep that.

Jesse Paliotto (34:12)

All right.

Hannes Andersson (34:25)

funnel as clean as possible. That’s always been super, super important for us is that we’re not using an account. We don’t have accounts. We don’t have oeksound accounts for our users, which is pretty unique as well. Usually for a lot of software companies, you need to log into your account in order to make a purchase and something like that. We thought since you’ve already trialing our product and you don’t have an account for trialing our product as well. And so.

Jesse Paliotto (34:36)

Mm-hmm.

Yeah, right.

Hannes Andersson (34:54)

when you make the purchase decision, we’re trying to be by all means not be in the way for you to make a purchase. So kind of like when you’re going through the purchase funnel, get out of the way. You as a company need to get out of the way and you need to just make it as easy as possible for a customer, for a business, for to make a purchase, to make a volume purchase, to make a…

Jesse Paliotto (35:02)

Right.

Right.

Hannes Andersson (35:21)

purchase with VAT code to be able to add your address or whatever you need there. And it should just be so seamless and like simple so that that happens without doubt. It feels like because we’ve been super transparent up until that point. So we’re not going to ask you to to kind of like, you want to buy our plugin? Well, first log in and so you can see

Jesse Paliotto (35:24)

Yeah.

Right.

Hannes Andersson (35:50)

what kind of coupons you have in your account. No, no account, no coupons. The price you see is the same price for everyone. You don’t need to worry that somebody else gets a better deal. And you just go through it and then you have it and then you get on with your life and you get to mix more music.

Jesse Paliotto (36:00)

Yeah, right.

I love it. I can’t tell you how many times I have stopped because you go to buy or to do a trial and you’re in it and like, oh, quickly set up your account. I’m like, I don’t got time for this. And I’m, I’m in my head. wondering, like, if I set up the account, are you going to remember what I was purchasing? Is the cart going to stay permanent through my exchange or might have to start back over on the homepage? Like forget it. And I just move on. Like that’s so smart. Like reduce as much friction and just allow the purchase.

Hannes Andersson (36:23)

Yeah.

Yeah. And if you, and

also all of that, like if you sign off, sign up to our newsletter, you get a 10 % coupon and it’s like, so there’s coupons involved as well. Well, is there a 20 % coupon somewhere? And then I go to Google and then I try to Google out like, okay, where can I get a 20 % coupon? And, and stuff like that. It’s just like, it makes it such a gray area and it doesn’t feel, it doesn’t feel right. It doesn’t feel like you’re treating the customer correctly because it’s

Jesse Paliotto (36:39)

Yeah.

Yeah.

Hannes Andersson (37:00)

Yeah, just… Yeah, I think it’s good.

Jesse Paliotto (37:02)

It’s interesting.

I don’t hear people talk about that a lot, and it may just be me missing it, but like it’s very popular with retail sites, right? Like clothing stores or something where, you know, send it for email and you get the pop-up, you know, get 10 % today signing up. And what you’re introducing is cognitive load to somebody who’s in a purchase funnel.

And it’s not like typically in the digital world, we tend to think in terms of there’s more clicks and that’s friction or creating the log in is friction. Cause you have to think of a pattern, but just the question I asked myself of wait, am I getting the best deal? That’s friction. And so, yeah, you’re reducing sort of that whole kind of internal slowdown.

Hannes Andersson (37:31)

Mm.

Yeah,

yeah, and that’s actually funny that you mentioned that because you can actually trace that back to the way we develop our plugins. So plugins pop up when you make your music, they pop up in a separate window in front of your track, and then you adjust your parameters and then you close the window. Now, for many sites and for many, let’s say,

Jesse Paliotto (37:52)

Mm.

Mm-hmm.

Hannes Andersson (38:08)

let’s say content on social media, they kind of count how long the user has spent with that content and that’s positive. I mean, the more time they’re on a site, the better or something like that.

Jesse Paliotto (38:22)

Yeah, that’s quote

unquote engagement and that’s what everybody wants in order. Yeah.

Hannes Andersson (38:26)

Yeah, but that’s completely the opposite for a good plugin, right? When you know how a plugin works and you’re mixing music, you want to get to an end result fast. shorter while you have open our plugin and it stays on, it’s not in a bypass state after you close it. So it stays on. So if you open a plugin, you spend, let’s average seven seconds, like looking at it.

Jesse Paliotto (38:47)

Yeah.

Hannes Andersson (38:56)

And then you close it. That’s good. Like that’s amazing. If you spend a little time on it. And I think the same way you think about, okay, now I’ve used the plugin and now I want to purchase it again, the shorter time it takes for that person to make that person to make that purchase for better. Right. Because they’re wanting to get back to mixing music, right? They don’t want to spend time in their browser. They don’t want to start questioning. Like if they’re getting the best.

best deal possible they want to get back to making music

Jesse Paliotto (39:27)

Yeah, especially

if they’re going to have 200 plugins they’re using on this track. Like I don’t want to do this 200 times.

Hannes Andersson (39:31)

Yeah.

No, this is just a plugin exactly. This is not like, we’re not changing the world here with what we’re doing. We make kind of like really flashy toys in a sense, but they’re super good tools.

Jesse Paliotto (39:47)

The that that reverse metric on engagement is funny. It takes me back to the analogy of like somebody building something with like physical tools like the tool that I like the most is the one that if you tell me, Jesse, here’s this tool for building stuff with wood. And every time you use it, it takes an hour to set it up and it takes an hour to clean it. You guess what? I’m never going to use that tool. The one that like does it fast and I can just keep building. I’m going to use that every time. It’s interesting sort of reverse metric from a lot of marketing funnels where yeah, engagement is the.

the currency.

Hannes Andersson (40:17)

Yeah,

of course that’s different if the tool is the thing you’re doing. I mean, if I’m sitting down and I decide that today I’m gonna explore plugins, then of course I will spend time with plugins because I’m not working on a track, I don’t have a client waiting for me to send over a finished version. I’m not getting paid by the hour when I do that. And so in that sense, it makes sense. I mean, if you buy a golf club,

Jesse Paliotto (40:24)

Yes.

Mm-hmm.

Hannes Andersson (40:47)

the more time you spend using that golf club, the better, of course. But because that is the hobby, that is the thing you’re doing. And that’s the same thing with an instrument then as well. I mean, if I buy an instrument, the more time I spend using that instrument, the better probably it was for me. It was a good purchase. But for a tool that’s there to kind of like get to the end result, it should not be in the way. It should just do its job and get out of the way.

Jesse Paliotto (40:50)

Yeah, true. Yeah, really good point.

Yeah.

You

Yeah, it really you have to understand the user journey or the user story. And maybe can you talk for a second? Before we started, we kind of talked for a second around the idea that you guys are your own audience. Can you just go back to that like about how you guys use your own stuff?

Hannes Andersson (41:32)

Yeah.

Yeah, and so I think actually I think I actually bought Soothe before I started working for all with Olli, which is really funny because I needed it. I needed it like it was a good tool and I needed it for my own music or for the music I was making for artists. And so that really shows kind of where where the core is at the company. I think everyone

dabbles in music in some form at oeksound, be it in recording or mixing when it to engineering or then producing music, playing music or then DJing or yeah, being, having something to do with music. And so a lot of us use our tools at least at a weekly basis, use our own plugins and we also use all the competitor, let’s say competitors plugins, even though we don’t.

Jesse Paliotto (42:18)

Yeah.

Hannes Andersson (42:34)

like to think of them as competitors, or they’re just other plugin companies whose tools we like. And then, so that’s always present when developing a product. Everything we do starts in product development. All marketing starts in product development. All kind of ethos starts in, it’s not a separate thing in any way. When we start thinking about a plugin, a new plugin, or an upgrade to a plugin,

Jesse Paliotto (42:56)

Yeah.

Hannes Andersson (43:03)

everybody’s involved. Everybody’s involved in what is it, what it’s going to be, what is it going to do, who is it for, and because it should be for us, like mainly. The plugins we do, we do for ourselves. We do take a lot of feedback. We do test it with users, have user testing and have alpha tests and beta tests and everything like that. But if we don’t like the plugin when we’re done, we’re not releasing it.

Jesse Paliotto (43:30)

Yeah.

Hannes Andersson (43:30)

I

mean, even though everybody else would say that it’s amazing, we still need to understand it ourselves because it’s really difficult to market something that you don’t understand.

Jesse Paliotto (43:41)

Yeah, that’s such a superpower to be the audience. I can imagine there’s maybe complications there, but you know, especially like in the B2B SaaS world, I think that can often be a problem where people aren’t using the product in their day-to-day lives. Especially if that’s not there, you know, if you’re selling whatever, you know, in my world, it would be sort of marketing tech. But if you’re, if you’re somebody who’s not marketing and it’s a B2B software, it’s very hard to figure out like.

Hannes Andersson (43:52)

Hmm.

Jesse Paliotto (44:06)

what are people actually doing, but there’s such an intuitive knowledge, I would guess, and kind of the oeksound team, where you guys like, no, this is how a producer uses it, because I just did that yesterday, and this was the problem I had.

Hannes Andersson (44:15)

Yeah,

exactly. Yeah. It’s so, and that’s, I love having those conversations with users where I can, I can just go up and ask like, Hey, so what do you do? Are you an artist or a producer or you’re an engineer? And then we talk about it. They tell them where they come, where they’re coming from, what kind of music they make, how they like to work and what their workflow workflow is. And then I can just immediately be like, that’s great. I do that. I do that as well.

That’s something new for me. Do you mind telling me more about that? this is where I see our plugins come in. Like when you do that, you might want to try this there or this there. And then just kind of like putting our plugins into the context of what they’re already working with instead of being like, this is going to fix all your problems in your life. And without having even listened to them to begin with about what their problems are.

Jesse Paliotto (44:56)

Yeah.

Yeah, talk about over promising. That’s going to be very hard to follow up with actual delivery. Well, Hannes, this has been so good. Thank you so much for joining today. I’ve I’ve so enjoyed this conversation. It’s very interesting. And I feel like there’s just kind of so many insights along the way around how you guys have structured, how you price things, how you sell things, how you develop things, how you’ve expanded.

Hannes Andersson (45:16)

No, yeah.

Yeah.

Jesse Paliotto (45:38)

Before we wrap up, there any, if people wanted to connect with oeksound, what’s the best way to maybe connect with you or with the company? Just go to the website or what’s the best thing for people to do?

Hannes Andersson (45:49)

So our website is oeksound.com. That’s O-E-K-sound, all in one word, dot com. There you can find our, our plugins. If you’re making music, you can download the trials there and use them for those 20 days. And, I’m not going to tell you to buy it because I don’t do that. And and also on socials it’s oeksound — O-E-K-sound — on, on all socials. That’s, Facebook X, TikTok,

Instagram, Twitter, everything out there. And so that’s where you can follow us as well. We’re a very small company. So if you send an email to contact [at] oeksound wanting to speak with me, we’ll know about it. Or if you send a DM, if you send a DM to any one of our social channels, I will know about it. If you connect with me on LinkedIn, just Hannes Andersson there, I will know about it. And so that’s the best way to connect with me.

Jesse Paliotto (46:33)

Nice. I love that. And we’ll add those in the show notes, of course. Thank you so much, man. I’ve appreciated this today. Thanks, everyone, for joining us on the Growth Stage podcast. I’m your host, Jesse Paliotto. Love being able to hang out with you and with the best in the business here on the podcast. Really pumped to have been able to get Hannes on here and talk through kind of their journey. Have a great week, everybody, and catch you on the next one. Cheers.

Hannes Andersson (46:55)

Thank you.

The post EP30: How oeksound Took Their Audio Plugins Business Global appeared first on FastSpring.

]]>
EP28: Scaling Success: Digital Entrepreneurship and SaaS Exits https://fastspring.com/blog/scaling-success-digital-entrepreneurship-and-saas-exits/ Thu, 23 Jan 2025 15:00:00 +0000 https://fastspring.com/?p=30162 A conversation with Flippa CEO Blake Hutchison on selling a SaaS or digital product business and how owners can prepare for a successful exit.

The post EP28: Scaling Success: Digital Entrepreneurship and SaaS Exits appeared first on FastSpring.

]]>
If you own a SaaS or other digital product business — such as a Slack plugin, Chrome extension, online publishing business, mobile app, or even a blog — and you’re looking to exit, you may have a lot of questions about how best to go about it.

In this episode of Growth Stage, we interview Flippa CEO Blake Hutchison about how Flippa works, as well as insights on what you should know if you’re a digital business owner looking to sell your business.

Listen for the full insights into:

  • How Flippa.com works to connect for-sale businesses with buyers while managing the complexities of valuation and seller expectations.
  • Advice on how SaaS or digital product company owners can prepare for a successful exit, including financial hygiene and knowing what the right time to sell looks like for themselves.
  • How selling an investment business is very different from getting VC funding.

If it’s time to sell your SaaS, app, or other digital product business, listen to or watch this episode of Growth Stage now!

Jump to video.  |  Jump to transcript.

Podcast Full Interview: Audio

Listen on Apple Podcasts
Listen on Spotify

Listen online or find it on more podcast services.

Podcast Full Interview: Video

Transcript

Jesse Paliotto (00:04)

Hello, everyone, and welcome to Growth Stage podcast, where we discuss how digital product companies grow revenue, build meaningful products and increase the value of their business. I’m your host, Jesse Paliotto. I support the digital product community as part of my role with FastSpring, and I love bringing the best of the community to you here on the Growth Stage podcast. Today, I’m really pumped, we have with us Blake Hutchison from Flippa.com CEO.

And we’re going to talk to Blake and get insights and updates about flippa.com as well as get insights on things that you should know if you’re a digital business owner, SaaS owner, looking to potentially sell your business and maybe get some insights from Blake on how to go about that and how you might go about it on flippa.com. Blake, thanks for being here today. I really appreciate it, man.

Blake Hutchison (00:48)

Thank you, Jesse. Really appreciate it as well. Should be a great chat.

Jesse Paliotto (00:51)

Yeah, looking forward to it. For those who are not familiar, can you start just giving us a quick overview of what Flippa is and how it helps entrepreneurs and business owners?

Blake Hutchison (01:00)

Yeah, absolutely, thank you for that. Flippa’s the number one platform to buy and sell digital assets and online businesses. So, should be a really good fit for a lot of the FastSpring customer base and audience out there listening in today. But in short, if you own a SaaS business, if you own a Slack plugin, if you own a Chrome extension, if you own a…

an online publishing business, even like a blog or an iOS or Android app, we have the pathway to exit. So we can offer liquidity and match these entrepreneurs up to the universe of buyers out there who are looking to buy these assets. And they buy those assets much like buyers and investors buy any other asset. They’re interested in the return on investment, they’re interested in the growth opportunities, they’re interested in the strategies and the synergies that those businesses can bring them, either as individuals or as companies. So it’s a marketplace, it’s a platform.

Our sweet spot is really between sort of that $250,000 size business all the way up to maybe a $25 million business. Our job is to match them up and make sure that they can find a happy home.

Jesse Paliotto (01:57)

Mm-hmm.

I love it. I’m tempted to like dive into, I’ve already got some questions on the platform and some of the specifics, but let me ask before that, I’d to hear just a little bit about yourself. Like what led you to become the CEO, Flip? What got you into this particular business model? I believe you’ve got some different, you know, experience as well. So I’d just love to hear how you got connected.

Blake Hutchison (02:21)

Yeah, maybe a few things. I first comment would be I did sell my own. I was an entrepreneur. I did sell my own business on Flippa. So I’m a customer of the platform and have used it and therefore had some understanding of its power and that therefore created a bit of a love affair between, I guess, the board and myself. Secondly, I’ve worked across many, many business models. And of course, we need to know how those businesses work here at Flippa. And I’ve done that. So I’ve worked in SaaS businesses that were fast growth.

and

now very big in the case of, say, a zero, which is cloud accounting software.

I ran one of the fastest growing online travel agencies, of course is ecommerce here in Australia called Luxury Escapes. That’s now a billion dollar company. When I was running it, it was a lot smaller than that, but scaled that up very, very quickly. As I mentioned, I was an entrepreneur myself. I built a marketplace for specialty food and I’ve worked in the Valley based in San Francisco across a number of, well across one startup and then a very established online publishing business called Lonely Planet, which of course at one point in

It’s the biggest guidebook publisher in the world. I guess the of the dynamic number of different industries and the business models I’ve worked across has been of great assistance to me here. And of course we work with entrepreneurs across the globe, regardless of their monetization strategy and approach. So that sort of diversity is still being good stead, I guess.

Jesse Paliotto (03:48)

Yeah, that’s amazing. mean, even just having sort of the gut instinct for, you know, as looking at decisions for the business or how to grow it, like being able to very at a sort of instinctual level, take into account the diversity of business models and stuff that are out there. That’s like a huge, I would imagine that’s just a huge asset for yourself personally and for the business for having you at the home.

Blake Hutchison (04:06)

Yeah, and you know what, I say this a lot. mean, business is business. And of course, industries are different and some industries are very complex. But for the most part, the way you run run business is actually quite analogous to the way you might run another business. The tools and tactics tend to be similar, albeit you need to nuance those. But you just learn so much from seeing so much across so many different businesses. And I think that that’s been really helpful.

Jesse Paliotto (04:35)

Yeah, that’s that’s huge. How has Flip It evolved since you’ve become CEO? Has there been any big milestones or changes or has it been largely sort of this steady state growth process or what’s that look like?

Blake Hutchison (04:47)

Yes, we’ve certainly grown six years consecutively, but I think the biggest evolution for us was going from what might be a low value digital asset marketplace into an M&A platform. And the biggest difference between the two of those statements is one, low value to sort of medium and high value, and then two, the actual service layer built into the technology underneath the hood. And so in the past, it was really a chat environment. So, hey Jesse, I like the

look of your blog, can I buy it? Yes you can, Blake, let’s do a deal. And that’s the history of Flippa. Now it’s a dynamic M&A platform, so we’ve got obviously still that negotiation engine which is the chat room, we now call that the deal room, but then you’ve got M&A insurance which is basically a reps and warranties insurance, you’ve got due diligence built in, you’ve got 15 different data integrations, you’ve got an AI matching tool that does 20 million matches annually, just in excess of

400,000

weekly. You’ve got different asset types. You and I spoke about SaaS plugins, Chrome extensions, all these types of different digital business modes that are now sort of prevalent in 2024. So we’ve had category expansion be a critical part of the business. So I think it’s really the maturation of the platform in what is still a nascent industry and then the service layer that we’ve built within the experience itself.

Jesse Paliotto (06:15)

That’s that rings so true for me personally, because my I experienced flip of first, I think coming out of like a digital marketing background and probably 10 to maybe 15 years ago where I think at that time and please correct me if I get this wrong, it felt like very much like people were selling their blogs there. This was when blogging was very new or at least it was kind of in the upswing and everybody there monetization. I think people were like, my gosh, I could actually sell this. This is like a sellable business and flip it was one of the places you did that. Right.

Blake Hutchison (06:32)

Yes.

You’re absolutely right, Jesse. was the beginnings. There were more blogs than there were anything else. And of course, there’s art today, but the digital economy has evolved substantially. So I think, the number one, to be candid and transparent about it, we sell more ecommerce businesses than anything else. And then second to that would be online publishing. Third to that would be SaaS. And then you sort of have this long tail of new asset types. And so an example of that would be YouTube channels, which is very

fast growing category within the Flippa ecosystem. So people sell a YouTube channel as an asset, they sell the back catalog, we sell KDP, so Amazon Kindle Publishing. That’s a really fast growing category for us. And again, things like Slack plugins, Chrome extensions, this sort of evolution of the platform economy is starting to find its way to Flippa.

Jesse Paliotto (07:39)

That’s interesting to me, partly because I think a lot of the logic around owning a business is that you have to really own your own platforms so that you are in control of what you’re selling, right? But if you’re selling YouTube channels and stuff, is there any, I don’t want to say gotchas or tricks, but any complexities or nuance is probably a better way to say that, around those categories you mentioned at the end where you’re trying to sell a business that is largely built on a third-party platform that you yourself do not entirely control.

Blake Hutchison (08:07)

Yeah, it’s a really great point. I candidly, I still think ecommerce is the most complex to buy as an investor because there’s so many moving parts. So, you know, it depends on the ecommerce.

sort of type, you’ve got direct to consumer, you’ve got drop ship, you’ve obviously got Amazon, you’ve got the other marketplaces like Walmart, et cetera. And so there’s complexities there. And you’ve got the warehousing, you’ve got inventory, you’ve got cost of landing that inventory from maybe China or any other market in the world into the US. So ecommerce is maybe the most complex with respect to how many moving parts there are.

And funnily enough, I mean I obviously take the question, but funnily enough YouTube channels as an example are probably the least complex. the reason being is YouTube is the second largest search engine in the world. So it’s actually similar to buying a blog. What you’re actually looking for is something which dominates YouTube search, something which has clearly high views, which is the equivalent of page views on a blog.

Jesse Paliotto (08:51)

really?

Blake Hutchison (09:13)

And

it’s kind of the most passive. And I never want to say that there’s a passive business you can buy because I’d be setting people up for failure. But it’s kind of the most passive in the sense that if something, you know, if a video about trampolines is consistently generating 100,000 views each month, and it’s been doing so for last 12 months, well, it’s highly unlikely unless Google search changes its search algorithm, which is probable. But it’s highly unlikely that all of sudden this thing drops off a cliff.

100,000

views, it will probably generate 100,000 views the following month. And then of course you generate revenue in much the same way as a blog. You’ve got the equivalent of AdSense, which is a Google product for YouTube, and they’ll serve up ads and you’ll generate revenue, you’ll take that check home every month. So it’s actually relatively consistent. And when you’re doing the due diligence, there’s only so many assets within a YouTube channel you need to assess. So it can be complex in the sense that

If the channel you’re buying is so dependent on new fresh content all the time, you obviously imagine yourself being able to produce that and produce that in line with your audience expectations. But if you’re buying mostly a back catalogue, then it’s less tricky.

Jesse Paliotto (10:18)

right.

You know, a slightly different lens to look at kind of the audience and like this through would be geography. Like you mentioned the different industries that you see coming up, the ones that are sort of leading the pack, these interesting ones that are rising. Is there any kind of places where geographically you’re seeing like we’re starting to see a lot more business or a lot more acquisitions in these regions?

Blake Hutchison (10:50)

Yep, so the US is our biggest market by an absolute stretch. Still 70 % of all trade happens in the US on Flippa. What we have seen though, Jesse, and I think it’s super interesting, is the rise of sort Southeast Asia and Eastern Europe entrepreneurial environment, entrepreneurship hubs.

And what is interesting to watch when you look at the graphs at Flippa that we track each month, US buyers still rocketing up and to the right. So the number of buyers investing in this asset class continues to increase, but what they buy is more regionally diverse. so Americans buying American assets and now it’s Americans buying global assets. And so 67 % of trade on Flippa is cross-border.

Jesse Paliotto (11:28)

Mm-hmm.

Interesting.

Blake Hutchison (11:41)

and essentially what they’re doing is going after all of the entrepreneurs across places like Poland, Bulgaria, Romania, places like Hong Kong, Singapore, Malaysia, Seoul, Thailand, etc. So many entrepreneurs building great small businesses that are infinitely leverageable.

Jesse Paliotto (11:48)

Mm-hmm.

Mm-hmm.

Blake Hutchison (12:05)

and

they’re then applying their understanding of the US approach to running these businesses, they’re applying their skill set, and they’re buying these businesses regardless of where they’re based around the world. So that’s been a substantial shift in the supply side of the Flippa marketplace.

Jesse Paliotto (12:22)

It’s interesting you just said that phrase literally what I was about to say. It’s interesting to see diversification as a supply side driven phenomenon rather than a demand side. Usually it’s like I want to diversify so I’m not all in one market. But this is the other way where there’s just so many good things out there around the world that people like, well, I guess I could buy a company in Vietnam as well as I could in Illinois. That’s interesting.

Blake Hutchison (12:32)

Yeah, no.

Yeah.

And there’s so many stories of that. mean, you know, there’s a San Francisco based company there, they’re called Sporcle where they’re the largest online trivia business in the world. And they recently bought a business out of Helsinki, Finland. And the AI matching connected them up with that opportunity. There’s no way that they would find that opportunity without the platform and the matching algorithm existing. So all of a sudden they find themselves in a deal room negotiating with a broker and entrepreneur based on the other side of the world. And that therefore is their pathway to growth.

Jesse Paliotto (12:55)

Mm-hmm.

Blake Hutchison (13:13)

and in organic growth through acquisition and they find that asset happens to be that the perfect asset is operating out of Europe.

Jesse Paliotto (13:21)

Yeah. Yeah, it’s interesting that AI is a key driver, at least if I infer that from that example where, because of course, I mean, it’s the problem of all digital world that we live in. There’s just so much opportunity, so much content, so many connections. And so that’s how you guys are steering people through that, that breadth of.

Blake Hutchison (13:36)

It’s

become enormous and yeah, I’m sort of jumping on the bandwagon, I, with respect to commentating about it, but the reality is it’s become an enormous driver of our business and it’s because it’s adding so much greater efficiency and accuracy to the matching process. so, know, deal flow and deal origination is one of the challenging things about M&A. And so if you are the founder, the CEO or the analyst working at Sporcle,

You can’t just be logging into marketplaces and platforms every day and seeing what’s out there. Your reliance on us pushing to you the deals that we think are the best fit. And you’ve got to get that right because if you don’t get it right, just annoy the client. And the AI, the precision that we’ve been able to build with respect to those matches has been outstanding. So what it does is it looks at intent signals. So if they are browsing the marketplace,

Jesse Paliotto (14:23)

Mm-hmm.

Blake Hutchison (14:36)

basically makes an inference as to the the fit of one asset based on other assets that they’re looking at so it’s kind of piece one that’s relatively simple and rudimentary the second thing it does is obviously read the mandate and the bio and then it picks up keywords within the mandate and bio and goes and finds relevant assets and then the third thing it does is you kind of got these graph neural networks so it looks at all the assets on the platform and that sort of

Jesse Paliotto (14:46)

Mm-hmm.

Blake Hutchison (15:06)

It creates synergy, so it’s a scatter plot. What is the proximity of one asset to another based on this network? And then it does that on the buyer side too. So it actually looks like buyers like you and what those other buyers are finding interesting. And then it infers that you will also find that interesting. In short, we then ping a text message, ping an email, and we say, we’ve got a match for you, check it out here. And that’s substantial scale in.

Jesse Paliotto (15:08)

Mm-hmm.

Mm-hmm.

Blake Hutchison (15:36)

in our magic business.

Jesse Paliotto (15:38)

Are you familiar with Pandora.com, the music company?

Blake Hutchison (15:41)

When I was living

in Francisco in 2005, they had just started and they were in West Oakland alongside me.

Jesse Paliotto (15:48)

What you just described to me is like a two-sided Pandora. It’s not only correlating the, people that like this band also, or bands like this or like this other one, but they’re correlating you. People like Jesse tend to log into this and you’re kind of doing it on both sides to kind of optimize and match, which is pretty cool.

Blake Hutchison (15:58)

Yeah.

Yeah, it is cool.

Jesse Paliotto (16:07)

Is there any, you this, may have been what you’re just talking about would answer this, but I’m curious if there’s any particular unique challenges around a place like Flippa and running that. It feels very complex, you know, in so many ways and kind of the types of deals that we’ve done, vertical industries, geographies. Is there anything about that that’s like, hey, this is really different than anything I’ve done in the past and here’s how I tackle it.

Blake Hutchison (16:30)

Absolutely, Jesse. I mean, it’s a managed marketplace. so firstly, you’ve got the marketplace aspect of that. It’s two-sided. You must fill up supply to ensure that you provide the adequate service that your demand side is looking for you provide. That’s an always-on battle. And so we’re what you call a high-value, low-repeat marketplace. And so all the transactions are…

of a high value, there’s very few marketplaces that operate at this value. You might have something like, obviously, a Zillow, a Redfin, an Opendoor, all of these are sort of managed marketplace businesses that are selling high value, and then the low repeat nature of it. So you’ve got to get it right first time around. If you don’t, you lose the opportunity to sell and collect revenue. And the likelihood of that customer coming back is quite rare. There’s very few entrepreneurs who spin up more than one asset.

mind that more than one business. And ultimately, there are buyers who are very prolific buying 10, 20, 30 assets, but in reality, most people are buying one or two. you’ve got to get the customer experience right from day dot, and that takes some time to evolve, and we’re continually evolving that. In addition to that, the matching piece is hard, the cross-border nature of it is hard.

Pricing is really difficult, so these athletes are complex. so one YouTube channel with 100,000 views isn’t the same as another YouTube channel with 100,000 views. The category is different. Where it derives its views from is different. An American audience is worth more than an Eastern European audience, just by nature of what advertisers will spend. So the pricing…

Jesse Paliotto (17:59)

interesting.

Blake Hutchison (18:22)

algorithm that goes into valuing these businesses is tricky and we got it wrong for a long time actually and I’d say it’s a lot more accurate than it’s ever been. Of course staffing, you you’ve got to have sales staff on the ground across all of these major entrepreneurship markets so that someone understands the process of selling.

It’s all good and well to do that through an outstanding onboarding experience, which we’ve clearly built. But if someone’s going to sell something for $250,000, it’s a highly emotional sale. And so you’ve got to get that right. And that requires good quality staff operating across, in our case, 20 different countries. So it is complex.

Jesse Paliotto (18:55)

Mm-hmm.

What? Yeah. And even that last comment about the emotional nature of it and that it’s a large deal. It’s maybe analogous to, people talk about if you’re if you’re buying a residence that you’re going to live in, it’s often the biggest purchase of your life. And it’s it’s this massive, massive moment for you. Like when when you’re with pricing, do you find that part of that emotional kind of like walking people through the sales process is educating them on what the pricing should be to people come loaded with a lot of maybe misconceptions around how the process works?

or most people pretty kind of hip to the flow of this.

Blake Hutchison (19:40)

Yeah, so if we step back a little bit, the first problem is most business owners aren’t thinking about exit. Most business owners are thinking about the day-to-day operations of their business, how to put a roof over their head, how to grow it, how to generate revenue and pay their staff. So the complexity of the business starts with one awareness for the problem at hand. And the problem at hand is that ultimately businesses tend to not last forever.

Businesses are assets. They are valuable and there’s a liquidity opportunity that we can provide. So you’ve got to make people aware of that. Then yes, to answer your question on pricing, they mostly have an inflated view, as you would expect, of what their business is worth and they tend to tie that to what they read about the VC industry or what they’re seeing in the public markets.

Jesse Paliotto (20:37)

right.

Blake Hutchison (20:38)

And of course, these businesses don’t have the scale or opportunity that a VC asset would typically have for growth. Its growth profile is different. And then secondly, you don’t have the always on day to day, minute by minute liquidity that you get in the public markets. So it tends to be that they are not valued as high as businesses which have that liquidity or have achieved that scale. And people need to be educated as to that. And then of course,

Jesse Paliotto (21:03)

Mm-hmm.

Blake Hutchison (21:08)

People don’t really know how businesses are valued. They’ll say, hang on, my brand’s great, my product’s great. And we’ll say, well, that’s great. We understand that, we respect that. But the way these businesses are bought and sold is on historical performance, not future opportunity. The future opportunity is for the new owner to realize, which is actually more analogous to buying property than it is to investing in a startup or buying public stock.

Jesse Paliotto (21:35)

Yeah, right. The potential

is there, but you have to put the work in to realize it. Yeah.

Blake Hutchison (21:39)

Yeah, so there’s some education that happens. The good news is we have the equivalent of like a Zillow’s estimate where we’ve got so much sales data that we can predictively price these things and tend to get it right.

Jesse Paliotto (21:46)

Mm-hmm.

Is there any advice you’d give to a SaaS or digital product company that is looking to sell their business on Flippa? What should they be thinking about? I some of the stuff you just said, obviously, anything else that you’d say, you know, be considering this if you’re looking to do an exit here.

Blake Hutchison (22:08)

Yeah, so investors are pretty savvy. If they’re buying a SaaS asset, they tend to know the metrics that matter to them. And therefore, we try to educate founders as best we can as to the metrics that matter. So you can have a SaaS business that says, hey, we’re great. We’re doing $2.5 million ARR. But the reality is they’ve got a high churn rate, their LTV is low, and their cat costs are high. And so the metrics that matter to a SaaS business, we would highly encourage most SaaS business owners.

to study, to understand and to improve and show consistent improvement or at least consistent effort to improve.

The second thing is just find a good quality sort of financial hygiene. Are you using accounting software? Do you understand your inflow? Do you understand your cash flow? Do you have a good feel for how the business is performing on a day-to-day basis? And we find that sounds simple, Jesse, actually, but we find that entrepreneurs are obviously so busy in the trenches that…

that financial hygiene is less likely to be there. So we highly encourage people to a bookkeeper and manage a clean set of books day in, day out, because it does improve their ability to run the business well, but it also sets themselves up for a better possibility at an exit long term. Probably the other thing is to start to imagine.

when the time will come that you may want to move on. And so we often find that people come to us, they suddenly say, I had a, you know, I was at Christmas lunch and I was talking to my family and I’ve decided that in 2025 is my time to exit. And then things aren’t in place. They don’t have standard operating procedures. They don’t have the financial hygiene that we alluded to before. They don’t have a sense for what it’s worth. They don’t have a sense for how much.

Jesse Paliotto (23:49)

Mm-hmm.

Blake Hutchison (24:04)

they are willing to part ways with this business for. And so we encourage people to start to think about that time. They’ll say, well, I’ll never wave the white flag. That’s okay. Think about all the things that annoy you in the business and start to plot a pathway to understanding when that time might come for you. Is it a year out, two years out, three years out? And then imagine the check. What size check will make you happy? You sort of need to work toward that and build a financial position in the business that will give you that

Jesse Paliotto (24:28)

Mm-hmm.

Blake Hutchison (24:34)

best possible chance of success.

Jesse Paliotto (24:37)

Yeah, that’s an interesting way of reframing, you know, what you had said a few paragraphs ago about people often they look at the VC markets, they look at that and they value their business according to these things, but their business is very different. But another I really like that framing like, if you think your business is worth X, then let’s build the framework and the pieces in place that value it at that. So you can feel good about that sales price and getting realistically getting it.

Blake Hutchison (24:56)

you

Yeah, mean, you know, if you take good quality public market SaaS multiples right now, they’re quite compressed still, right? And so you’re looking at maybe five, if you’re lucky, seven times for the average publicly traded SaaS business. Well, in the small market dynamic, you might be looking like sort of two and a half to five times. Two and a half for a standard business, five times for a great quality business with a reasonably low churn rate, maybe sub 7 % churn.

So for those businesses, let’s say therefore that you’re a million dollars ARR but you’re saying, I want a 10 million dollar check. Well, a million dollar ARR business that is subscale, i.e.

generating substantial revenue at this juncture, that business isn’t going to give you a $10 million check, but you can plot your pathway to that and say, okay, well, now I need to get this business to maybe three million ARR, $3.5 million ARR to imagine myself getting that $10 million check.

Jesse Paliotto (26:04)

I wanted to ask you, kind of mentioned like we have like a Zestimate type tool that will kind of value and what are the key factors that it values on? Is it mainly sort of using those default metrics for SAS multiples and then maybe considering churn rate? Or is there some other key things that people should think about when they do sort of a back of the envelope calculation of their value?

Blake Hutchison (26:24)

Yeah, those things are included, but yeah, let’s just go through them. you know, revenue, your cost base, your

profit and we understand and respect that SaaS businesses are not always profitable. They’re reinvesting for growth. The cost of the technology is high, the cost of customer acquisition is high. So it doesn’t need to be profitable, but those things are still taken into consideration. So that rule of 40 top metric is considered in this landscape. Cost of acquisition, LTV, retention rate, churn obviously.

Then location, you the reality is if you’re trading to an American customer.

Let’s say for argument’s sake you’ve got a trade, you know, a trade tech business going after construction companies or builders or plumbers or something like that. The reality is there’s more plumbers in the US than there is in Australia. So if you’ve got a trade tech business and you’re going after plumbers and you’re selling a business to an investor on Flippa and you happen to be US versus Australia, well you’re going to get a compression to your multiple if you’re Australian, unfortunately compared to if you are.

US just by nature of the target addressable market and the opportunity for that new acquirer. So those things are all taken into consideration. Growth rate is taken into consideration. Clearly a declining business. There’s very few people in the world who want to buy a turnaround. You’re talking about a very specialist acquirer.

Jesse Paliotto (27:52)

Mm-hmm.

Blake Hutchison (27:56)

And so again, this comes down to timing. A lot of entrepreneurs will suddenly say, wow, I’m down, I’m down again, I’m down again, shit, I better exit. Well, the reality is that wasn’t the time to exit. The time to was when you were moving up and to the right. Now we’re not looking for moonshots, so we’re not looking for triple digit growth. Those businesses are actually considered a little bit speculative in a market like Flippa.

We’re looking for consistently growing businesses or even flat businesses where the predictable nature of the business is what an investor is most interested in.

Jesse Paliotto (28:33)

Yeah, very interesting. So assuming somebody’s sort of got their business in a place, they’ve got realistic expectations, they have some growth going on or at least flat line performance that they’re not in this kind of bad situation of being in decline and then deciding. So they got those ducks in a row, they get the flip up and they want to pursue doing an exit. Are there any strategies or patterns or things that would be like, if you’re going to come in and do it, here’s some advice on how to pursue that.

Blake Hutchison (28:59)

Yeah.

So one of the best tactics that most people won’t do is to point out the weaknesses in the business. And the best way to do that is, know, investors buyers are pretty savvy. They can see the strengths. The strengths are obvious. What is interesting to a good quality buyer are the things you don’t do well. And so you have to be vulnerable. You have to say that

I’ve never invested in an SEO and I have no idea what content marketing is. So therefore, if you have that capability, then my business will be beneficial with it. I’ve never advertised for customers on Facebook and Google, but if you have that capability, that will be an opportunity for this business.

Jesse Paliotto (29:39)

Mm-hmm.

Blake Hutchison (29:53)

Our churn rate is poor, but we actually know why. And we haven’t got the means to develop that feature set that will help us with our churn and retention. So therefore, if you are a developer with experience in SaaS businesses in this particular category and industry, this business can be optimized. Because buyers are trying to imagine themselves.

taking over these businesses, right? Again, for the most part, they’re not investing, they’re acquiring. And so when they acquire, they then have to take it over. So they need to understand how it works today, they’re the strengths, and they need to make sure that they can continue to run it to the same level that the business owner is running it today. And then secondly, they need to then understand what the weaknesses are, so that once they’ve …

taken the asset over, understood it for some number of consecutive months, they can start to work away at those operational weaknesses and start to fast-track their ROI.

Jesse Paliotto (30:58)

Yeah, that’s interesting. It’s almost a reverse SWOT analysis. So the way I’ve done SWOT in the past, I imagine a lot people have, is you do your strengths, weaknesses, opportunities, threats, and you go, here’s an opportunity, apply our strength to the opportunity. But you’re doing it different. saying, show your weakness. And the weakness is actually where a purchaser or an acquirer say, I can turn that into an opportunity because I have a strength that you don’t. So it’s almost this inversion going on.

Blake Hutchison (31:13)

Yeah.

Yep.

Yep. And it’s an interesting one. Sometimes what is perceived as a strength, a buyer,

considers a weakness. So let me give you an example of that. Now, middly, I understand your audience is, know, SaaS, gaming, et cetera, and this is not an example of that, but I think they’ll get it regardless. So there’s an ecommerce business for sale right now. It’s a $6 million listing. It’s had a lot of attention. And what ends up happening is that acquirers and buyers find out that a lot of the stock,

that is bought is then personalized. So Jesse’s buying a baby romper and then his son or daughter’s name is stitched on the front. And so this…

Jesse Paliotto (32:11)

Right.

Blake Hutchison (32:14)

The founders consider a strength, right? The personalization aspect of what this business offers is what is most attractive to it for parents all over the world. They love the personalization of it. Jesse loves that he can have his name stitched into this romper for his new baby that’s been born in the last six months.

That’s cool for you as a customer. It actually is what sets this business apart. But it’s spooky to acquirers because the acquirer is going to spend $6 million on this business. And if they haven’t worked in or operated a business which is built around personalization before, and is more mass market, churn and burn, high speed retail, that can be…

Jesse Paliotto (32:51)

All

Blake Hutchison (32:58)

challenging. so sometimes we do get entrepreneurs come to us and they’ll say, this is a highly niche operation. And we agree that that should be a strength. And ultimately, our matching algorithm will find the relevant buyer for that type of business. But it can sometimes be a bit debilitating. And it does limit the chance of finding a buyer fast.

Jesse Paliotto (33:23)

Yeah, is most of the buyers, do you find they are people that run the business? I think you said this a couple minutes ago, it’s they are acquiring, not investing. So most of the people that are purchasing the businesses intend to run them themselves.

Blake Hutchison (33:37)

Yeah, they run or they have a team to run. We have what we call the side hustler, we have acquisition entrepreneurs, and we have institutional investors. Regardless, so the side hustler is I’ve got a job, I’m Jesse, I’m Blake, I want to supplement my income and I want to run this digital asset on the side. They’re, know, Slack Plugin, Chrome extension, SaaS business, whatever.

Jesse Paliotto (33:41)

Mm-hmm.

Mm-hmm.

Blake Hutchison (34:05)

I’ve got the acquisition entrepreneur, so that’s Jesse or Blake, but we’re gonna quit our jobs and we’re gonna buy something. We’re gonna buy our next job. So we are an entrepreneur. It happens to be that we won’t do the zero to one, we will do the one to 10. So that’s a safe play because you don’t have to invest all of that time up front in requiring your first hundred or thousand customers, building a technology, understanding how it works and then finding product market fit. Somebody else has done all of that heavy lifting for you.

Regardless to your question, yes, I’m still operating. And then you have the institutional investor. So yes, they call themselves investors, but the reality is they do have a team waiting in the wings to operate. So they’re either rolling up multiple assets that look the same, or they’re buying an asset that looks different but is an awesome extension to some of the business that they already run today. Typical PE type strategy in organic growth for a good quality business.

Jesse Paliotto (34:49)

Mm-hmm.

Blake Hutchison (35:03)

answer your question. Again, they’ve still got a team to run it so yes they are owning and operating.

Jesse Paliotto (35:07)

Yeah.

Yeah, that’s interesting. Well, this is all been extremely interesting. Blake, thank you so much for your time today. This has been great. Is there any final thoughts or comments that maybe I didn’t get to open up that you wanted to make with the audience before we wrap up here? Just wanted to see if you had any final advice for people in the SaaS and digital product world looking to sell their own business.

Blake Hutchison (35:32)

I’ll maybe two quick comments. If you want a very quick valuation, it’s completely free. Just head to Flippa.com, you’d get a free valuation. Hope you don’t mind me plugging that, Jesse. And then the second one is, you asked the question about investing versus operating, so we are imminently, we are just about to launch Flippa Invest. So Flippa Invest will basically make available just an excess of 70,000 accredited investors on our platform who are looking to invest in good quality small businesses.

Jesse Paliotto (35:40)

Absolutely.

Blake Hutchison (36:02)

only, tech only businesses. They’re not looking for moonshots, they’re not looking for IPOs, they’re looking to invest in good quality businesses where they can apply some advisory. So Flippa Invest will launch soon and if anyone’s interested in that just reach out to me on LinkedIn.

Jesse Paliotto (36:16)

that’s wonderful. To reach out to best thing to look you up on LinkedIn?

Blake Hutchison (36:20)

Yeah, LinkedIn’s my platform of choice, so grab me there. I’m pretty active there and I’m happy to chat with anyone about it.

Jesse Paliotto (36:28)

I love it. Well, thank you so much for being here today. I really appreciate it. Blake, this has been super interesting for me personally and I’m sure for people that are listening.

Blake Hutchison (36:36)

Thank you, Jesse. I really appreciate the time.

Jesse Paliotto (36:38)

Thanks everyone for joining us on the Growth Stage podcast. I’m your host, Jesse Paliotto. I support digital product. Community is part of my role here at FastSpring and I love getting to do this. Hang out and bring the best of community here on the podcast with you all. Thanks everybody. Have a great week. Catch you next time. Thanks.

The post EP28: Scaling Success: Digital Entrepreneurship and SaaS Exits appeared first on FastSpring.

]]>