Lessons from Transforming a PropTech Business Model

Transforming an established business model is one of the most challenging endeavors in product leadership. When we embarked on shifting our PropTech platform from license-based to transaction-based revenue, we knew it would require more than just technical changes—it demanded a complete rethinking of how we deliver value.

The Challenge

Our license-based model had served us well, but we saw the writing on the wall:

• Customer expectations were changing – Users wanted to pay for value, not access
• Market dynamics were shifting – Competitors were already moving to transaction models
• Growth was plateauing – The license model had natural scaling limitations

The Parallel Systems Approach

Rather than a "big bang" migration, we implemented a parallel systems strategy:

1. Phase 1: Build alongside – New transaction infrastructure running parallel to existing systems
2. Phase 2: Gradual migration – Moving customers in cohorts based on readiness
3. Phase 3: Optimize and scale – Refining based on real-world feedback

This approach allowed us to:

• Maintain revenue stability during transition
• Learn and adapt without risking the entire business
• Give customers time to adjust their workflows

Results: 80% Migration in 6 Months

The numbers tell the story:

• 80% of customers migrated within the first six months
• 45% increase in engagement post-migration
• Net revenue positive within the first quarter of transition

Key Lessons Learned

1. Over-communicate the "Why"

Customers don't resist change—they resist unexplained change. We invested heavily in education:

• Detailed documentation of benefits
• One-on-one sessions with key accounts
• Regular webinars explaining the transition

2. Make the Old Path Harder, Not Impossible

We didn't force migration. Instead, we made the new system significantly better:

• New features launched first on the transaction platform
• Better support and resources for transaction users
• Clear roadmap showing where investment was going

3. Build for the Skeptics

Design your migration path for your most skeptical customers. If it works for them, it will work for everyone.

Looking Forward

Business model transformation is never truly "complete." The transaction model has opened new opportunities we're still exploring. The key is building an organization that's comfortable with continuous evolution.