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

Everything everyone said. Also, fyi what investors care most about is ARR - annual recurring revenue. They will heavily discount the investment value of perpetual licenses - source: the company I work for went through this when we took on Series A, and it was maybe THE number 1 priority before we secured Series B funding (from the same VCs) to convert basically all perpetual license customers to subscription customers.