Now’s the best time to switch from Lemon Squeezy to Freemius
If you’re looking for a Lemon Squeezy alternative built for software makers, now’s the perfect time to move.
We offer free managed migration and 0% platform fees for the first 3 months.
Florian Vizethum
CEO of flowdee
Florian Vizethum
CEO of flowdee
Lemon Squeezy vs. Freemius: at a glance
Lemon Squeezy arrived on the scene in 2021 with a design-first team and a slick-looking product that quickly gained attention among indie creators.
Riding the wave of Gumroad’s pricing backlash, it positioned itself as a clean modern way to sell digital products. Its strength lies in serving a wide range of creators, with a focus on simplicity and polished design.
In 2024, Stripe acquired Lemon Squeezy and has since been developing its own “Managed Payments” solution. While Lemon Squeezy continues to operate, the acquisition has shifted and spread the core focus and left many software makers wondering about the platform’s long-term direction.
Freemius has been around since 2014, built specifically for software makers from day one. Instead of diluting services by covering all types of digital goods, it went deep into the needs of SaaS, desktop software, apps, and WordPress plugins and themes.
Beyond payments, the platform covers the essentials of running a software business: licensing, subscriptions, tax and compliance handling, churn recovery, marketing automation, and (much) more.
As a fully bootstrapped, independent company, Freemius sets its roadmap based partly on direct feedback from thousands of makers already selling on the platform. The team also works directly with makers on pricing, packaging, and growth strategies, acting as a partner that grows alongside their businesses.
This raises the question: When both merchant of record platforms can handle payments, what makes many software makers choose Freemius?
What makes Freemius the strongest Lemon Squeezy alternative
- Stronger infrastructure for software-specific needs
- Faster and more strategic support
- A community that actively helps them grow
01
Platform: Purpose-built for selling software
- Pre-purchase: Exit-intent coupons and cart-abandonment recovery to capture lost sales
- Post-puchase: Smart renewal reminders, failed-payment recovery, and card-update automation
- Pre-cancellation: Retention flows and targeted surveys that uncover why users leave
- Post-cancellation: Automated win-back campaigns with tailored discounts to re-engage churned users
Instead of patching together tools, you get a single system designed to boost conversion, reduce churn, and maximize lifetime value — out of the box.
02
Team: We grow with our makers
- Educational content backed by data from thousands of software makers
- Strategic guidance on pricing, packaging, and go-to-market strategy
- Advice on launches, retention, and scaling
- Responsive, developer-first support team
“We’ve worked with Freemius since 2018 and it’s been a great, positive experience. Their support is amazing, and they’re always improving things.”
DeoThemes
“The team at Freemius helped us get our unique code sorted and live. We now have both the Free and Premium versions available.”
ProFeedWP
03
Network:
Stronger together
- Community: 1,800+ makers learning, sharing, and supporting each other in Slack and at in-person maker meetups.
- Affiliates: A built-in affiliate platform, plus introductions to creators and marketers who can expand your reach.
- Business connections: When it’s time to scale or exit, our team helps connect you with the right investors and acquirers.
Wherever you are in the journey, Freemius gives you the tools and guidance to keep moving forward.
Lemon Squeezy vs. Freemius:
Feature breakdown
Here’s how both merchant of record platforms stack up on the features that matter most to software makers like you.
The next step is running the numbers on both payment platforms.
| | | |
|---|---|---|
| Focus | Micro-SaaS and small software businesses | Broad digital goods (courses, ebooks, memberships, etc.) |
| Licensing | Advanced engine with remote activation, deactivation, and subscription sync [1] | Basic key generator tied to subscriptions |
| Support | Fast, technical, and strategic | |
| Checkout reliability | Fast, technical, and strategic | |
| Chargeback handling | Managed on your behalf; platform fee returned | Auto-refunds; platform keeps its fee + charges a $15 dispute fee per case |
| Cart abandonment recovery | Included; 7.5% avg. revenue lift | Costs 5% extra per recovered payment |
| Trial support | Supports trials with or without a payment method required | Trials require a payment method |
| Affiliate platform | Built-in, no extra fees | Adds 3% merchant fee + 2% affiliate fee |
| Transparent fees | All fees upfront, no surprises | Hidden extras for PayPal, international, and subscriptions [1] |
| Security | 10+ years breach-free | API breach reported in 2024 |
| Global availability | Full coverage [1] (including India) | |
| Customer portal | Self-service with advanced license and subscription control | Basic billing portal; no real license management |
| Onboarding | Instant approval |
Lemon Squeezy vs. Freemius:
What you actually pay
Lemon Squeezy markets 5% + 50¢, but the real cost often runs higher. Extra charges for subscriptions, PayPal, international payments, affiliates, and cart recovery can push fees into the 10-18% range.
Freemius uses a simple revenue-share model that starts at
4.7% + gateway fees and drops as you scale, with no hidden costs
4.7%
+ gateway fees
- Immediate account approval
- Avg 24-hour support ticket turnaround
- Free¹ wire payouts² wherever you are
- Automated sales tax compliance
- Focused exclusively on selling software
- Hands-on migration assistance
¹ Wire payouts may incur intermediate bank fees.
² Supported payouts through Wire, Wise, Payoneer, and PayPal.
- 0% fee on the tax component
- No extra % for cart recovery
- No extra % for failed renewals recovery
- No setup fees, monthly fees, or hidden fees
Processing large payment volumes?
What’s included?
Merchant of record
- Global payment processing
- Credit cards & PayPal
- Automated sales tax and VAT
- Fraud protection & risk management
- Localized checkout & multi-currency
- Simplified reporting & reconciliation
- Chargeback & dispute management
- PCI compliance out of the box
Selling software
- Webhooks
- REST API
- Software licensing
Self-served customer portal
- Plan changes and upgrades
- Payment method updates
- Retention flow
Subscriptions & recurring billing
- Automated renewal reminders
- Multi-seat and multi-license support
- Smart card updates
- Failed renewals recovery
- Trials
Marketing
- Affiliate Platform
- Cart abandonment recovery
- Coupons and discounts
- Subscription recovery campaigns
- Verified reviews collection
Solution
SaaS & software
SaaS, desktop apps, Chrome extensions, Electron apps
WordPressi+2.3%
Plugins, add-ons, themes, templates, widgets, kits
- Software licensing
- Multi-site licenses
- Automatic updates
- Release management
- Beta versions
- Staged rollouts
- Single sign-on with WordPress
- Sell from WP Admin Dashboard
- Sell add-ons & bundles
- Opt-in & usage tracking
- Audience analytics
- Deactivation feedback
- WP.org compliant GPL SDK
- WP.org review automation
Real-world example
Your business is based outside the USA. You sell a $100 software subscription to a customer in the EU, paying in USD via PayPal. With 20% VAT, the gross transaction is $120. Here’s how the fees break down:
| Description | Amount |
|---|---|
| Product price | $100 |
| VAT | $20 |
| Total transaction | $120 |
| | | |
|---|---|---|
| Base price | 4.7% | 5% + 50¢ |
| Platform fee | $4.70 4.7% x $100 | $6.50 5% x $120 + 50 cents |
| Gateway fee | +$4.70 3.5% x $120 | +$1.80 International card +1.5% x $120 |
| Subscription payment | Free | +$0.60 Subscription payment +0.5% x $120 |
| PayPal payment | Free | +$1.80 PayPal payment +1.5% x $120 |
| Subtotal fees | $8.90 | $10.70 |
| Payout currency conversion | Free | $1.80 – $3.60 +2%–4% x $89.30 Applies if your country's currency doesn't match the payout currency. E.g., if you're from the EU, selling in USD. |
| Payout fee | Free | $2.70 3% x $89.30 3% capped at $30 per payout for accounts outside the US via PayPal. |
| Total fees | $8.90 | $10.70 |
| Effective rate | 8.9% | 11.6% to 17% |
*Based on Lemon Squeezy pricing.
That’s a single transaction, but what really sets Freemius
apart is how the fees scale down as your revenue grows.
Scaling with Freemius
Freemius is built with growth in mind. Instead of adding costs as your sales increase, the fee percentage goes down. The tiers look like this →
| Monthly gross | Progressive rev-share |
|---|---|
| 0–$50,000 | 4.7% |
| $50,000–$60,000 | 4.5% |
| $60,000–$70,000 | 4.0% |
| $70,000–$80,000 | 3.0% |
| $80,000–$90,000 | 2.0% |
| $90,000–$100,000 | 1.0% |
| $100,000 + | 0.5% |
Gateway fees (~3.5%) apply consistently, but there are no extras for essentials like affiliate sales, subscription renewals, or cart abandonment recovery.
Takeaway:
For simple, one-off domestic sales for a broad range of digital goods, Lemon Squeezy can appear cheaper. Once you start selling subscriptions, handling international payments, dealing with global tax compliance, or relying on affiliates, the effective cost often doubles or triples. Freemius offers a consistent, transparent model that becomes more affordable as your software business grows.
Start selling with Freemius today
Set up your Freemius account in minutes and, if you’re launching a SaaS or app, enjoy 0% platform fees for the first three months:
Create your account — instant approval
Thinking of leaving Lemon Squeezy? We’ll make it simple.
1
Export data
With guided instructions from our team
2
Set up products and plans
Pricing, subscriptions, and trials included
3
Import licenses or subscriptions
Migrated directly into Freemius
4
Launch the new checkout
Fully tested and ready to go live
5
Sync renewals
Keep customer licenses updated automatically via webhook events
6
Notify customers (optional)
Communicate changes on your own terms
FAQ: Choosing a Lemon Squeezy alternative
What’s the best Lemon Squeezy alternative for selling software?
How does Freemius handle chargebacks compared to Lemon Squeezy?
How fast can I start selling with Freemius or Lemon Squeezy?
What is better for selling software: Lemon Squeezy or Freemius?
What are the key differences between Lemon Squeezy and Freemius?
Lemon Squeezy serves a wide range of digital creators (courses, memberships, ebooks, and general software), while Freemius is built specifically for software products like SaaS, plugins, and apps.
Freemius includes advanced licensing, churn recovery, and developer-first support out of the box, whereas Lemon Squeezy requires more add-ons or workarounds for software-specific needs.
