As a small team, Framer had to prioritize resources to have the most impact. At the time, Framer had just one person focused on the commercial side of the business. Framer knew it wouldn’t be able to figure out its billing, payments, tax, and financial compliance in-house, so it turned to a Merchant of Record solution.
Fastspring - the first solution Framer chose - brought a significant business risk. Framer wasn’t able to export subscriber details, which meant it couldn’t effectively own the subscriber relationship, should it ever need to migrate subscribers to a different platform.
Setting up a multitude of different, disparate platforms - including payment gateways, tax calculators like Taxamo, billing management systems and bank accounts - was quickly ruled out. As a small team, Framer simply wouldn’t have the time and resources to cope with the ongoing compliance, and time and effort which would be required.
As Framer grew, its team also began to receive interest from large enterprise companies with demanding procurement processes, requiring payments to be accepted via wire transfer into local bank accounts.
This growth from both individual consumers and businesses meant Framer’s support reps were burdened by billing and product queries.
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Paddle as Merchant of Record
Paddle ensures Framer has everything it needs to drastically save time and resources whilst powering growth.
Users around the world can subscribe to a Framer plan in over 20+ local currencies and local payment methods in over 20+ countries around the world via a self-service checkout on its website, whilst pricing is optimized for conversion for each region. Accepting wire transfer payments from enterprise customers is simple, without incurring additional reconciliation complexity.
Paddle operates as the Merchant of Record, so Framer remains fully tax compliant in over 40 countries (including all EU countries and US states), without hiring additional finance assistants. Framer is never at risk of falling out of compliance for one or more of the markets it sells to globally, eradicating its tax risk and liability.
Billing support enquiries are handled by Paddle, with a team working seven days a week to respond to customer questions, cancellations, and upgrade requests with fast turnaround. Paddle support agents also employ tactics to reduce churn and encourage upgrades to annual payments.
Throughout a subscriber’s lifecycle, many Framer users add new seats to bring teammates onboard. Paddle’s subscription management handles all proration logic and other billing changes as required, and sends personalized emails regarding new subscriptions, payments, renewals, and credit card expiration notices.
4% Reduction in Churn
With Paddle, Framer has seen incredible year-on-year growth, and a significant portion of revenue now comes from business customers.
As the Merchant of Record, Paddle saves Framer considerable resources without hiring additional employees or using consultants or agencies to manage tax, finance and compliance. Its billing stack is also simplified with one single platform, with no need to pay for multiple platforms.
Paddle resolves a significant number of support queries per month for Framer, taking the burden off Framer’s support reps, so it can focus solely on product support. As a result of the churn prevention tactics the Paddle support team have implemented, Framer has also reduced churn by over 4%.
By dealing with a large portion of invisible work that goes into managing billing for software businesses, Paddle enables Framer to spend more time building its product and delighting customers.
employees managing global taxation
strong international community