SaaS & Apps

What kind of products can I sell with Freemius?

You can sell any Software-as-a-Service (SaaS) or downloadable or static software. This includes for example, any cloud based software application accessed via the web, desktop or mobile apps, Chrome extensions, etc. See the full list here.

Do I need a company to start selling my SaaS?

No. You can start selling as an individual. Freemius handles payments, taxes, and compliance on your behalf, so you don’t need to:

• Open a company
• Register for VAT
• Set up payment processors
• Many makers start this way and formalize later.

When should I choose an MoR like Freemius over Stripe or Paddle?

Use an MoR when you want to avoid managing tax compliance, legal liability, and payment operations across regions.

Stripe gives you full control but requires you to handle taxes and compliance; Paddle and Freemius act as MoRs, with Freemius being more tailored to SaaS, plugins, and Software products.

Can I use Freemius with Lovable?

Yes! Freemius integrates with Lovable using one prompt. See more details here

You can use that prompt to generate a working checkout + subscription flow inside your Lovable app, including payments, licensing, and webhooks. This lets you skip building billing infrastructure while Freemius handles subscriptions, global taxes, and compliance as a Merchant of Record.

How does using an MoR change my SaaS or App billing architecture?

You offload payments, tax calculation, invoicing, and compliance to the MoR, while your app focuses on subscription logic and access control.

Instead of building complex billing infrastructure (like with Stripe), you integrate a checkout and receive webhook events for lifecycle changes (purchase, renewal, cancellation).

Do I lose control over pricing or subscriptions when using an MoR?

No. You still define pricing, plans, trials, and upgrade/downgrade logic; the MoR executes transactions and ensures compliance.

Using a Merchant of record significantly reduced operational and legal overhead.

How does an MoR handle global taxes (VAT, GST, sales tax)?

The MoR automatically calculates, collects, and remits taxes based on the customer’s location and applicable laws.

This matters if you sell internationally—without an MoR, you’re responsible for tax registration, rate updates, and filings in each jurisdiction.

Example: Selling to EU customers requires VAT handling (OSS/IOSS). An MoR abstracts this entirely.

What’s the difference between one-time payments and subscriptions?

One-time payments charge the customer once for a product or service, while subscriptions charge customers automatically on a recurring schedule (e.g., monthly or yearly).

One-time payments are simpler to implement and don’t require ongoing billing logic. Subscriptions, on the other hand, require handling renewals, upgrades, cancellations, and failed payments—but they better fit SaaS products that deliver continuous value over time.

Example:

• One-time: Pay $49 for lifetime access
• Subscription: Pay $10/month for ongoing access and updates

How do I control user access after payment?

Freemius notifies your app about subscription events (like purchase, renewal, cancellation) via webhooks or API. You use those events to:

• Grant access to paid features
• Restrict access if a subscription expires
• Handle upgrades/downgrades

This gives you full control over your app logic, without handling billing complexity.

What happens when a SaaS subscription payment fails?

Freemius automatically handles failed payments for you. This includes:

• Retry attempts
• Email notifications to the customer
• Updating subscription status

You’ll also get notified via webhooks, so you can adjust access in your app if needed.

What do I pay Freemius to use the service?

Freemius has a progressive revenue share model price of 4.7% of (item price minus gateway fees), meaning we only earn when you do.