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

submitted 9 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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[–] founderscurve@alien.top 1 points 9 months ago

its a short term marketing strategy to gain traction, in the hopes that longer term there will be sufficient customers that the impact of these lifetime customers is diluted. at the same time, since the lifetime customer will pay a greater upfront fee, they can use this to reinvest in growth, lastly, assuming they've done it correctly, the avg lifetime of a customer could be not that long meaning lifetime, isn't actually lifetime.