Seven Sins of Subscription Billing                               Steve Adams – CEOMarch 28, 2013                          ...
Speaker Introduction    Steve Adams, CEO                stevea@fusebill.comwww.fusebill.com      Thursday, March 28, 2013 ...
Agenda      1. Billing for the subscription economy is challenging      2. Seven Sins of Subscription Billing      3. Fuse...
Key Takeaways      • Think about your current and future needs      • No ‘one size fits all’ solutions      • The Biblical...
BILLING IN A SUBSCRIPTION         WORLDwww.fusebill.com      March 28, 2013                                               ...
Fusebill Introduction                                                 Fusebill automates                                  ...
Subscription Economy Overview    It’s no longer about selling a product    one at a time, but about offering a    service....
Billing Service Overview   Automated Billing for Subscription Based   Companies:   •    Recurring billing and payment solu...
Transactional back office systems fail                                                                          Recurring ...
The Seven Sins    1.     Rely on a gateway    2.     Do-it-yourself systems    3.     Ignore Security and PCI Compliance  ...
Sin #1 – Rely on a Gateway      • Payment Gateways are needed to process credit cards online            – Authorize.net, B...
Payment Gateways Limitations      • Billing intelligence: Gateways process        charges – don’t determine amounts       ...
Sin #2 - DIY Billing Systems      • Startups and Development shops are often tempted to build      • Why is it tempting?  ...
“Just” bill by credit card                                PCI                                            Security         ...
DIY Billing becomes Bottleneck    Resource battles:                       By automating our billing    • Core product take...
Sin #3 – Ignore Security & PCI      • PCI – security and process requirements driven by credit cards      • Protecting bil...
Sin #4 – No Product Catalog      • Some invoicing systems (Freshbooks, Quickbooks) let you        define an invoice and se...
2 @ $100                 BasicBasic      2 @ $100        2 @ 2 @ $100             $100                                    ...
2 @ $100                                       Basic      2 @ $100        2 @ $100                                        ...
Product Catalog Needs      • Define / configure products       Ask:            – One-time fees               • Can I suppo...
Sin #5 – Don’t address complexity and scale                              Multi          Pricing complexity grows          ...
Issues of Scale      • Need for automation increases as customer base grows            – New Orders            – Customer ...
Sin # 6 – Revenue Sharing      • Many services base their pricing on your revenues (e.g. 2%)                              ...
Sin #7 – Insufficient Engagement & Support      • Big or small, there are complexities and quirks in all billing        pr...
Fusebill Executive Dashboardwww.fusebill.com      March 28, 2013                                                          ...
Track Lifetime Value, Churnwww.fusebill.com      March 28, 2013                                                           ...
Fusebill Platform Overview                       Self-      Online                        Swipe &          Agent          ...
Questions or Ideas?Visit www.fusebill.comCall me 1-888-519-1425                         28
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Seven Sins of Subscription Billing

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Selecting a recurring billing platform is a risky decision, selecting the wrong one can cause havoc on your business, your customers, and your coworkers.

In this webinar Fusebill CEO, Steve Adams will share seven sins of subscription billing so you know what to watch out for when conducting your research and making your selection.

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  • Steve has over 20 years of experience in leading high-technology and software companies, most recently as VP and General Manager with j2 Global, which acquired Ottawa-based Protus. Steve helped propel Protus into one of the fastest growing companies in Canada, with over 555,000 subscribers, before it was acquired in 2010. Steve also worked at Spotwave Wireless, CrossKeys Systems Corporation, Corel and Nortel.Steve is a graduate of the University of Waterloo and the Ivey School of Business.
  • One-one mapping of invoices to clientsNot selling products – Hard to manage diversity of different optionsCant setup by themselves
  • Seven Sins of Subscription Billing

    1. 1. Seven Sins of Subscription Billing Steve Adams – CEOMarch 28, 2013 1
    2. 2. Speaker Introduction Steve Adams, CEO stevea@fusebill.comwww.fusebill.com Thursday, March 28, 2013 2Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    3. 3. Agenda 1. Billing for the subscription economy is challenging 2. Seven Sins of Subscription Billing 3. Fusebill Introductionwww.fusebill.com March 28, 2013 3Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    4. 4. Key Takeaways • Think about your current and future needs • No ‘one size fits all’ solutions • The Biblical 7 sins are more interesting than the billing sins…www.fusebill.com March 28, 2013 4Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    5. 5. BILLING IN A SUBSCRIPTION WORLDwww.fusebill.com March 28, 2013 5Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    6. 6. Fusebill Introduction Fusebill automates invoicing, billing and collections for subscription based companies. We pride ourselves on our customer support and service. We measure our success by our customer’s success.www.fusebill.com March 28, 2013 6Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    7. 7. Subscription Economy Overview It’s no longer about selling a product one at a time, but about offering a service. No matter what your industry, subscriptions are growing by leaps and bounds. Forrester Research predicts by 2016 subscription licensing models will reach 50% of the total software license market.www.fusebill.com March 28, 2013 7Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    8. 8. Billing Service Overview Automated Billing for Subscription Based Companies: • Recurring billing and payment solutions, • Invoicing and credit card collections, • Real-time visibility to key subscription metrics For businesses with products or services billed on a recurring bases, a billing service: • Reduce costs, • Improve customer response times, • Streamline operationswww.fusebill.com March 28, 2013 8Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    9. 9. Transactional back office systems fail Recurring Billing Initial Sales Process Renew Upsell Multiple Concurrent Subscriptions Cross- Usage Based sell Charges Traditional transactional systems don’t support recurring Credit Card Expiry, Fraud, etc. 9www.fusebill.comCall Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    10. 10. The Seven Sins 1. Rely on a gateway 2. Do-it-yourself systems 3. Ignore Security and PCI Compliance 4. No Product Catalog 5. Limited scope and scale 6. Revenue sharing with your vendor 7. Insufficient Support and Engagementwww.fusebill.com 10Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    11. 11. Sin #1 – Rely on a Gateway • Payment Gateways are needed to process credit cards online – Authorize.net, Beanstream, Chase, Moneris etc. • Fusebill integrates with over 30 gateways… • Most have added basic ‘recurring billing’ capabilities • Easiest solution for a raw startupwww.fusebill.com March 28, 2013 11Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    12. 12. Payment Gateways Limitations • Billing intelligence: Gateways process charges – don’t determine amounts Taxes Coupons Pro-rating • Manage Customers, not transactions Discounts Add-ons • Reduce credit card declines and chargebacks Price Plan Free Trials • Data portability Price • Insights to subscription business via reporting and analyticswww.fusebill.com March 28, 2013 12Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    13. 13. Sin #2 - DIY Billing Systems • Startups and Development shops are often tempted to build • Why is it tempting? – Everyone starts with a simple pricing model – Using existing resources – ‘Free’ – How hard can it be?www.fusebill.com March 28, 2013 13Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    14. 14. “Just” bill by credit card PCI Security Fraud Compliance Card Expiry Declines Chargebacks Fees Volume Prorating Chargebackswww.fusebill.com 14Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    15. 15. DIY Billing becomes Bottleneck Resource battles: By automating our billing • Core product takes priority • Sales, marketing, finance take with Fusebill, we’ve freed backseat up our sales and development team to Manual Processes are band-aids. focus on our business Mélanie Attia, e-signlive Internal demands ignored until critical.www.fusebill.com 15Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    16. 16. Sin #3 – Ignore Security & PCI • PCI – security and process requirements driven by credit cards • Protecting billing data from: – External risks – hacking, theft, disclosure – Internal risks - misplaced drives, backups, agent access • Downside? – Business risk – client data disclosure – Unable to process credit cardswww.fusebill.com 16Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    17. 17. Sin #4 – No Product Catalog • Some invoicing systems (Freshbooks, Quickbooks) let you define an invoice and set it to recur.www.fusebill.com March 28, 2013 17Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    18. 18. 2 @ $100 BasicBasic 2 @ $100 2 @ 2 @ $100 $100 Client AA Client 2 @ $100 2 @ $100 2 @ $100 2 @ $100 Premium 2 @ $100 2 @ $100 Client B 2 @ $100 2 @ $100 2 @ $200www.fusebill.com March 28, 2013 18Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    19. 19. 2 @ $100 Basic 2 @ $100 2 @ $100 Client A 2 @ $100 2 @ $100 2 @ $100 2 @ $100 Premium 2 @ $100 2 @ $100 Client B 2 @ $100 2 @ $100 2 @ $200 • Clients are setup individually (and manually) • Can’t answer ‘how many clients are on the basic plan’ • Can’t change the price easily • Can’t upsell/change with pro-ratingwww.fusebill.com March 28, 2013 19Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    20. 20. Product Catalog Needs • Define / configure products Ask: – One-time fees • Can I support my price – Recurring plans? • Can I report properly? – Volume / users • What happens when: • My pricing changes • Define pricing options • I have a promotion – Recurrence frequency • I have a new product – Coupons – Discounts – Trial periods – Apply taxes?www.fusebill.com March 28, 2013 20Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    21. 21. Sin #5 – Don’t address complexity and scale Multi Pricing complexity grows Product exponentially: • Product proliferation • Currencies Price • Channels Models • Promotions Simple • Sales models Pricing Price Manual Processes become error Points prone Invoicing By automating our billing with Fusebill, we’ve freed up our sales and development team to focus on our business. - Mélanie Attiawww.fusebill.com 21Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    22. 22. Issues of Scale • Need for automation increases as customer base grows – New Orders – Customer calls – Collections – and collection failures • Drive toward customer self-service – Ordering – Manage credit cards, renewals, billing questions • Integrate to related systems – CRM, Accountingwww.fusebill.com March 28, 2013 22Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    23. 23. Sin # 6 – Revenue Sharing • Many services base their pricing on your revenues (e.g. 2%) Online Payment – Ordering Rating Generation Delivery presentation Collection Billing Cost $0.20 Billing Cost $2000 It shouldn’t cost more to use bigger numbers on the invoice!www.fusebill.com 23Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    24. 24. Sin #7 – Insufficient Engagement & Support • Big or small, there are complexities and quirks in all billing processes • Most people (and companies) don’t have experience buying billing systems • Vendors should actively help: – Understand your own needs – Show how systems meet your needs – Help implement, migrate clientswww.fusebill.com March 28, 2013 24Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    25. 25. Fusebill Executive Dashboardwww.fusebill.com March 28, 2013 25Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    26. 26. Track Lifetime Value, Churnwww.fusebill.com March 28, 2013 26Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    27. 27. Fusebill Platform Overview Self- Online Swipe & Agent Lifecycle Service Analytics Checkout Subscribe Interface Management Portal API Layer – Customers, Subscriptions, Transactions Pricing Accounts Billing Invoicing Payments Products Subscriptions Rating Payment Credit Card Price Plans Invoices Usage Volumes Terms Date ACH Usage Tiers Ledgers Pro-rating Control Storage Vault Discounts Reseller Taxation Review, Edit Gateways Coupons Tracking Coupons Aging Dunning Payments Currency Adjustments Retries Adjustments Adjustments Scalable Multi-Tenant PCI Compliant Security External Payment Processingwww.fusebill.com March 28, 2013 27Call Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved
    28. 28. Questions or Ideas?Visit www.fusebill.comCall me 1-888-519-1425 28
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