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How are lifetime deals profitable on saas? (alien.top)

submitted 11 months ago by Pure-Bumblebee-6616@alien.top to c/entrepreneur@indiehackers.space

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Since this is a one time price and you need to provide support and pay maintenance costs on monthly/yearly basis, why is this attractive to do (instead of a subscription)?

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[–] 88captain88@alien.top 1 points 11 months ago (1 children)

Typically when you buy a product with a perpetual license it doesn't include support, maintenance or upgrades. Think of Microsoft and no one runs windows 3.1 or even XP because their newer products are worth the upgrade. Typically they'll provide security patch updates but not new versions.

Other things like Plex lifetime deals are there because they either want the money on their books for investments or owners want to cash out. It also works kinda like a reverse ponzi scheme where they're relying on new sales to provide support for the existing sales.

[–] pak-ma-ndryshe@alien.top 1 points 11 months ago

Sometimes the customers won't even consider subscriptions, like people self hosting their plex servers are willing to pay for the lifetime license and equipment upfront for the sake of getting rid of recurring payments.

Sometimes people need a service once in a while and it's a peace of mind having access to it and not paying for it while you're not using the services. I myself am a web developer and I rarely use wordpress but I got a lifetime licence to festingervault which gives me all the premium plugins. Feels good knowing I will always have access to it and I won't feel bad if months go by and I don't utilize it (and feel guilty for keeping on paying the monthly fee)