Hello everyone, today we've got some exciting news about the service, we have changed business models slightly, instead of having you purchase an entire years worth of service up front we've changed to offering a monthly subscription.
There are many reasons for this change which we're going to go through in this blog post but before that, check out the new snazzy subscription buttons we've got!
Before we get into the why, I just want to assure everyone reading, if you're one of the many people who purchased a years worth of service up front your service is not ending or being cut short in any way. Your entire full years worth of service will continue and once it ends then you can choose to change to one of our new subscription plans or return to the free plan we've always offered.
And to our customers using our free plan, don't worry we're not getting rid of it. The free plan is very important to us and as you know we do not segregate features so those of you using our free plan get every feature our paid customers do without exception.
So why did we do this?
Paying for a year up front is expensive
Firstly asking people to pay for an entire years worth of service up front is a big ask especially for startups and smaller developers. They may not have the funds to pay $100 or $200 dollars for the hundreds of thousands of daily queries their new site or app has. So turning to a subscription allows the cost to be spread out and thus entices more people to pay for a paid plan when they just didn't have the money before.
Hard to try before you buy with a costly 1 year commitment
Another reason is a lot of our potential customers told us, can I just get a monthly plan to try the service? and you may say couldn't they just use the free 1,000 queries to test it? Well yes, but if you're running a huge website that small number of queries will get eaten up in minutes (as we have seen with some customers already). So they would prefer to try the service with as many queries as they need but not break the bank in the process.
We undervalued our service to make the 1 year commitment not feel so expensive
The third reason is that we were significantly undervaluing the API, our low per year cost was to reduce the sticker shock. We believe we were underpricing by 2-3x on the plans we offered. Again making people pay for an entire years service in one go is a difficult proposition. If we leave money on the table that's less money we have to invest in new servers and technologies.
It allows our customers to upgrade sooner and as their needs require it
Since you were locked into a year commitment, if you needed more queries sooner than that you would need to purchase a larger paid plan sooner and that can get very expensive especially if you're seeing explosive growth but not explosive profit margins.
It allows us to offer bigger plans
Due to the high cost in buying plans that you had to pay 12 months up front for we were reluctant to offer very high query allotment paid plans, at-least on the website itself, we have accommodated some customers after they contacted us with larger needs than we presented on the site.
But now that we're charging monthly we can offer larger plans and that is exactly what we have done. Previously 240,000 daily queries was our largest paid plan and it cost $360 for 12 months. We now offer 2.64 Million queries per day for $100 a month. And we also now offer 320,000 queries for just $30 a month which is the same price users paid for only 240,000 queries previously. Spreading the cost certainly makes it much more attractive.
In-fact the first six plans we offer priced from $5 to $30 double the previous plans query allotment. So as your service grows and your needs grow you need only pay an extra $5 per month to get twice as many queries as you were previously.
Now we understand a switch like this may make people disappointed, our most affordable plan has gone from $15 to $60 when extrapolated over a years worth of service and any way you slice it, that is a big increase. The fact the up front cost has gone from $15 to $5 isn't so great when you look at the annual cost, we know this.
But I hope you can understand that we undervalued these plans on purpose because we did not have the resources at the beginning to offer monthly paid subscriptions, setting up reoccurring payments even with stripe is time consuming and we have been building out the entire service over the past year. In-fact we only launched paid plans very late last year, some 7 or 8 months after the site first started.
As you can imagine having to pay $60 up-front for only 10,000 queries wouldn't have been very attractive to anyone. Most of our customers actually purchased our middle tiers around $60-$120 because they needed those high query packages (40,000-80,000). Now customers can get those same plans for only $15 a month which makes them much more attractive up front.
If you have any questions about these changes or anything else related to our service please do email us as many of you have been doing, it is important that we hear your feedback. Thanks