Subscription or sell?

andrea_a
Posts: 4
Hello everybody, I'm a new type designer and I'm creating 3 new fonts. I hope to finish them in July. I have a doubt: selling or subscription font? Thanks. Have a nice day.
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Best Answers
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Hi Andrea,
If you are asking about the license type, it depends on your business plan. I would say that the permanent licensing model is more suitable for new typefoundries that have yet to establish a customer base. My impression is that clients in general prefer permanent licenses and will tolerate being disturbed each year only if they respect the typefoundry or typeface above a certain point.
Subscription makes more sense for the web, because it is harder to control desktop use than web use.
If the subscription plan is such that its price really reflects the limitation that was imposed on the client, then clients might be interested. Let's say that the basic (10k views) permanent web license is $40, and the expected term of its usage is 8 years. A yearly subscription for it would be $5 (mathematically), but let's say $15–20 in reality ( because otherwise the typefoundry loses the opportunity to get a safe $40 at once).
But my impression (maybe wrong) is that foundries that go with subscription don't follow this line, but rather tend to somehow sell at the same price ($40), but just impose a yearly limitation on top of that.1 -
True subscription only works as a service, i.e. it requires infrastructure to manage the subscriptions and to ensure that the fonts are being used within the permissions of the subscription service. Usually, such services include things like hosting of webfonts, so that’s an added cost that the subscriptions need to cover. This is why font subscription services tend only to be offered by larger and well-established companies, resellers, or software providers.
Some foundries charge an annual fee for some use types—e.g. web or app embedding—, which is sort of like a subscription without the overhead. They mostly rely on customers to pay the license renewal fee and not to continue using the fonts beyond the license term, but have no technical mechanism to prevent infringement, only legal remedies (cease and desist letters, demands for fees for the unlicensed uses, taking customers to court).
Personally, I decided when we launched our retail licensing—after three decades in the business focused on custom fonts, so with an established reputation—, that we would use a one-time-fee perpetual license model for all use types. I am aware that some people will say that doing so is ‘leaving money on the table’, but I am okay with that. I don’t want to be a rentier, and would rather our customers know that they’re paying for what they need and won’t get charged againg for the same things down the road.8 -
Perpetual licensing is all that Terminal Design sells. We have been doing it for 30 years and it works well for us and our clients.1
Answers
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Hi Igor, thank you for helping
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Hi James, thank you for helping
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Hi John, thank you for helping
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