The State of Chargify Billing: Important Changes to Our Billing & Collection Method

by Paul Lynch

Since I joined Chargify in August 2019, we’ve worked to become the world’s leader in billing and subscription management. Our mission is to be your partner in billing, providing more than just a platform, but the support of over a decade of experience.

That said, the continual evolution of our technology is still a top priority. In the past year alone, we’ve enhanced the Chargify application through improved integrations, the introduction of additional billing models, and a better user experience. And that’s just the beginning. As we kick off 2021, our team is hard at work, putting the final touches on upcoming releases. (Keep an eye out for powerful new data analysis & price experimentation capabilities to support your broader business needs.)

Of course, as our product continues to evolve, so must our business practices. Extensive market research has highlighted the need for some minor changes in the way we bill. While most of our customers won’t be impacted by this change, we’ve no desire to make it in the dark. That’s why we’re offering open and transparent communication about what we’re changing and why. If you are an impacted customer, we’ll be reaching out to you individually.

The What: Upcoming Changes to Our Billing

For the past 3 years, Chargify has provided services for a percentage of revenue. This percentage was calculated using only your successfully collected payments from credit cards, ACH, and direct debit. Through careful consideration, we’ve determined this model no longer meets market norms.

We believe in the power of value-based pricing and counsel our customers to align their billing to the value provided through their services. Chargify isn’t a payment processor, so billing like one doesn’t make sense. The value we provide (in our simplest form) is through billing and subscription management, which happens to result in the automated creation of accurate and timely invoices.

To that end, we will now bill based on the revenue we manage on your behalf, regardless of the collection method.

The Why: Alignment, Investment, and Leading by Example

We have three motivations behind this update:

1. To align Charigfy’s pricing model to the industry standard. If we want to continue supporting your needs as a growing organization, we must also remain competitive in the billing and subscription space.

2. To invest revenue back into our product. We’re not interested in lining the pockets of our investors. We’re interested in evolving our product to better support your needs. That’s why we invest in research and development. That’s why we’re expanding our team by acquiring top talent. That’s why we’re ultimately creating the #1 billing and subscription management tool.

3. To—quite literally—put our money where our mouth is. I’m sure you’ve heard us talk up Events-Based Billing as the industry-leading subscription billing model. Well, it’s not just talk. This change allows us to support you with our very own Events-Based Billing platform. Finally, our own billing directly connects value and price.

What’s Next?

We understand these changes may directly impact your business. The health of your organization and our ongoing partnership is my top concern. Thus, we strive to continue charging a fair and reasonable amount for the services we provide. Ultimately, I believe these changes are the best way to offer you ongoing support of the highest quality.

If you do have questions or concerns about this shift, please reach out to us. We’re happy to provide you with further context.

Finally, thank you for your continued support and loyalty to the Chargify team. We appreciate your trust in us through one of the most tumultuous years many of us have seen. And, we look forward to continuing our partnership with you in the years to come.

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