The Real Estate Database (RED) has always strived to provide a seamless and efficient experience for its agents. Initially, we operated with an invoicing system for annual subscriptions. However, it quickly became clear that this model had significant drawbacks. Agents could delay payments for months, while using the active services as a means to extend their subscription without paying the full amount upfront. This not only caused cash flow issues for RED but also added administrative overhead in chasing down these payments.

The Rise of Mobile Money: A Game-Changer.

The introduction of mobile money completely transformed the way RED handles payments. By allowing online prepayments in smaller, manageable amounts, agents could now conveniently pay in advance without feeling the pressure of settling a large annual bill. This shift saved RED from the time and resources involved in collecting partial payments, which often required multiple trips.

Why We Moved Away from the Invoicing Model.

It became clear that clients who received invoices often preferred to pay in installments. This highlighted the need to move away from an annual subscription model and instead adopt smaller, monthly payments. Many agents simply did not have the full amount at the time of invoicing, leading to delayed payments or requests for smaller installments.

The online subscription payment method addresses these challenges by offering a more flexible and convenient solution.

Here’s why it’s superior to the old invoicing model.

1. Automatic Renewals: Once a payment is processed, your account is automatically renewed, no need for manual intervention.

2. Ease of Use: You can make payments directly from your phone or device, simplifying the process.

3. Convenience: You no longer have to wait for someone else to renew your account; you can do it yourself whenever it’s necessary.

4. Flexibility: Payments can be made in any amount above 10,000 UGX, giving agents the freedom to pay what they can afford at the time.

5. Speed: Completing a payment only takes a few steps, making the process quick and efficient.

Eliminating the Drawbacks of Invoicing.

Under the old invoicing system, many RED subscribers developed a habit of requesting invoices and then going silent, often pushing overdue payments for months, sometimes into the next year. This pattern created a financial strain and a time-consuming administrative task of constant follow-ups.

Some clients would claim they couldn’t pay immediately and ask to defer payment, assuming RED had ample resources to cover the delay. However, the reality is that deferred payments disrupt cash flow and impact service delivery. The new online subscription model solves this issue by requiring payment in advance, eliminating the risk of delayed or overdue payments.

Breaking Down Payments for Easier Management.

The online subscription model breaks down payments into smaller monthly chunks. RED covers annual costs, such as domain name fees, web hosting, and other essential services, on behalf of the client. In return, the client makes manageable monthly payments. While this model factors in administrative costs for managing smaller transactions, it also accounts for months that may have been skipped without payment.

Collecting smaller amounts does have operational costs, such as increased transaction fees and the opportunity cost of delayed full payments. To mitigate this, we’ve made smaller payments slightly more expensive, while offering significant discounts for larger, upfront payments. For example, one month costs 195,000 UGX, but if you pay for two months, it costs just 286,000 UGX. This means each month comes down to 143,000 UGX, saving over 40,000 UGX per month. The more months you pay for, the larger the discount.

Why the New Model is Superior.

Ultimately, the online subscription model offers a more flexible, efficient, and cost-effective solution compared to the previous invoicing system. It puts control into the hands of the agents, allowing them to make payments on their own terms, while ensuring RED maintains a consistent cash flow to continue providing high-quality services. By paying in advance and opting for bulk discounts, agents can also save money in the long run. The online subscription payment model is not just an improvement, it’s a game-changer for both RED and its subscribers.