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by jedberg 2613 days ago
As someone who runs a SaaS business, lifetime subscriptions seem like the worst idea ever. I can't imagine it gets you that many more people who wouldn't buy otherwise, vs the incredible risk you take that you've correctly predicted the cost of providing your service forever.

That being said, this is a super helpful list!

3 comments

Yes, there surely are many pitfalls, both for customers and companies. I think it is important for the company not to overpromise in cases like this. But I guess one of the main reasons companies do lifetime deals, is to get initial traction, and fastet build a very dedicated group of beta users. If they handle that correctly, it can be a big asset, and cheaper than many other forms of startup marketing.
This is actually the reason why I do not buy any lifetime membership. Because of the risks involved it seems to me that buying lifetime memberships run the risk for the customer of overspending when the service closes shop. Or in some way getting screwed.

An obviously bad monetization strategy is more of a warning sign than no monetization strategy at all.

There was a forever hosting provider for a one-time fee in Holland.

They were very popular until they went out of business.

They weren't cheap either! I think €99 or even €199, but don't remember well. It was around 8 years ago.