September 23, 2013
Reversing charges can be a nightmare for the subscription based businesses. What if you are in a business of subscription, you charge on monthly basis and someone cancels, upgrades, or downgrades on 20th day of the month. Then figuring out the amount of the reverse charge becomes tricky. Also including the VAT (Value Added Taxes) and other taxes may make you pull out your hair. Fusebill claims to make these complex problems as easy as the click of a button.
Fusebill was Co-founded by Greg Burwell and Tyler Eyamie in 2011. The company acquired $2 Mn in Venture funding through investors OMERS Ventures and Covington Funds in 2013. Fusebill started as a group of former colleagues meeting in a room at the Ottawa Public Library. The company currently has 20 full time employees and over 100 customers such as Silanis, Conceptshare and Nuvio.
Fusebill automates invoicing, billing and collections for subscription based companies. It’s business model claims to offer a complete billing and subscriber management system that meets a broad range of needs at an affordable price. Fusebill allows flexible pricing, discounting schemes and manages the subscriber lifecycle from sign-up until cancellation. With the increasing adoption of SaaS and mobile technologies within the enterprise, there is a likelihood that businesses would turn toward subscription-based business models hosted in the cloud. This replaces manual processes and home grown systems. Helping in managing the customer lifecycle from selling new products, add-ons, renewals, upgrades and targeted offers based on individual customer characteristics.
With rise in subscription economy of the past couple of years and my interest in subscription billing I started to look at automated billing and payment platform providers. There were plenty of options for companies which offer credit card payment but invoicing and billings were mostly manual process or some system generated. I felt Fusebill could fill that void said Tyler Eyamie, President and Co-Founder of Fusebill.
Their billing system includes abilities such as:
i. Intelligent retries which allows processing of cards even after failing on first try. This alone can cut churn rate to half for a broad based service
ii. Better customer communication like sending notifications to both customers and staffs about receipts, upcoming renewal, credit cards failure etc.
iii. Credit card management system which provides customers with the capability to manage their own payment methods, view invoices and other information about their account
The major competitors in this field include Zuora, Recurly, PayPal and Chargify. Most of these companies target large enterprises and small businesses. Fusebill however seeks to cater to associations, freelancers, large enterprises, mid size and small businesses. While most of its competitors have features like recurring billing, subscription management, open API, one time transactions etc. Fusebill claims to offer an array of extra features such as Customer care interface, Branded PDF invoices, 2 Level tax management and more.
Recurly charges, small business users $99/month and 1.25% of revenue generated whereas enterprise users are charged $399/month (for the first 12 months only) and 1.25% of revenue generated.Chargify has a Small business plan $129/mo which allows a user to manage 500 customers and a New Idea plan $65/mo which includes 20 customers. Fusebill’s online monthly fees starts at $250 for small business users (limited to 1000 users) and $400 for enterprise users (no limitations).
LTP View: According to estimates from Gartner by 2015, more than 40% of companies selling media and digital products will rely on subscription management systems to manage their customer lifecycle. Demand for subscription management systems has resulted in a rise of startups in this space. Most of them may end up competing with each other on lower pricing and features, thus benefiting end users.