Lifetime deals, or LTDs, are a one-time payment option for customers to get lifelong access to your software. Simply put: pay once, not monthly.
It’s easy to see why a low one-time payment appeals to customers who are used to recurring software fees. But as a software creator, why would you want to support non-recurring customers for life?
Lifetime deals are actually a far more beneficial investment than you might think. But they’re also not for everyone. You’ll have to make sure this model matches the economics of your SaaS business.
We’ll walk you through why lifetime deals can be an awesome strategy and how to make them work for your business. Let’s dive in.
“So what’s in it for me?” An LTD is not only a sweet deal for customers, but it also offers lots of benefits to you, the partner.
Instead of letting subscription revenue slowly trickle in, you’ll get a nice boost of cash through the upfront one-time payment—perfect for businesses just starting out.
You can invest the revenue you earn right away into areas like product development or marketing that will work to grow your business more quickly.
LTDs can be extremely effective for increasing your user base through word of mouth on community-driven platforms.
As a result of attracting a ton of excited customers, you can reduce the average costs of customer acquisition compared to the usual marketing and sales strategies.
Listing a lifetime deal is a highly cost-effective form of marketing, leveraging user excitement and community engagement to boost your brand's reach and impact.
LTD buyers are extremely active and willing to provide feedback. You'll get the type of direct, honest input on your roadmap that’s invaluable for early-stage companies. This feedback is a game-changer, helping you tweak your product fast and align it with what users really want.
(For AppSumo, partners say this is one of the biggest perks of their experience!)
While LTDs can bring in a wave of new customers and boost short-term revenue, they also come with a few challenges to carefully navigate.
Here’s what to keep in mind.
When customers opt for one-time discounted offers instead of subscribing to regular services, it can disrupt long-term revenue streams.
By planning pricing strategies and incorporating upsell opportunities, you can maintain a balance between short-term gains and long-term sustainability. (Feedhive did this and walked away with $400,000 in revenue.) For example, you can introduce tiered lifetime deals that provide basic access with the option to upgrade to more feature-rich plans (more on this later!).
A sudden rush of new customers can strain resources—e.g., customer support, server capacity, and development teams. With this surge of demand, you may find your company stretched thin.
To make sure it doesn’t impact service quality, you’ll want to prepare by scaling up infrastructure, streamlining processes, and ensuring that your support team is trained to handle increased volumes of traffic.
Over time, your team, systems, and processes will get the hang of things as your product improves. You’ll want to continuously monitor performance and gather feedback to identify areas for further improvement. This proactive approach will not only help you handle the influx of customers but also strengthen your company's resilience and capacity for growth in the long term.
Sometimes, people view LTDs as “too good to be true” (i.e., lower quality). True, LTDs could dilute the value of your product in the eyes of potential subscription-based customers.
You’ll need to counter this perception by emphasizing your value proposition and showing off social proof that can make people confident in your offering.
Customers also want to see your commitment to ongoing product development and improvement. By sharing your roadmap or regularly updating existing LTD customers on upcoming features and enhancements, you not only show that you're invested in their long-term satisfaction but also reinforce the value of their initial investment.
On top of that, offer top-notch customer support. Be responsive to inquiries, address concerns promptly, and go above and beyond to assist customers with any issues they may encounter. Being proactive fosters customer loyalty but also helps to mitigate any negative perceptions that may arise from the LTD model.
Once you list an LTD, there are tons of opportunities to capitalize on the momentum of your product and drive sustainable growth.
Typically, your first LTD campaign will last 30 to 60 days. Offering your deal for a limited time creates a sense of urgency, amping up the FOMO. This not only incentivizes customers to make a purchase but also helps manage resource strain and preserves the value of the product.
Limiting the availability also positions your product as a premium offering, enhancing its perceived value and appeal.
Another great way to capitalize on post-LTD growth? Upsell. Structure your deal with multiple tiers.
By offering different levels of features, you’ll generate additional revenue streams and offset the potential loss of recurring revenue.
Plus, this approach encourages users to grow with your product, increasing their lifetime value and loyalty.
Setting the right price point for your LTD is crucial to its success. AppSumo helps you choose the optimal price for your LTD through market research and by considering factors like customer acquisition cost and lifetime value.
Pricing your deal appropriately ensures you attract the right customers without devaluing your product, setting the stage for a successful long-term relationship.
Reviews are a quick and easy way to showcase demand and customer satisfaction. Reach out to customers to leave a review either personally or by automating your onboarding process.
Our customers are big on social proof and reading reviews on your PDP. From there, you can expand your review requests to sites like G2 and Capterra.
On top of reviews, passionate LTD users themselves are your best word-of-mouth advocates. Create a robust affiliate program that incentivizes excited customers and turn those LTD buyers into revenue engines. Trust us, they’ll be some of the best people to spread the word about just how awesome your tool is.
At the end of the day, not every SaaS business is suitable for listing a lifetime deal.
As we touched on above, you may have a resource-intensive product requiring significant manual user support. For example, if your product needs a human team member to create accounts, an influx of customers may eat into your team’s bandwidth. LTDs may not be a fit for you until you’re able to scale and potentially automate such features.
Our pricing model may also be a risk for early-stagestartups that are still iterating on their product and haven’t figured out their long-term cost structure yet. A lifetime deal might restrict future pricing, limit cash needed for growth, and set user expectations that don't match the way your company evolves.
Consider these factors before committing to an LTD model:
Here’s a decision framework that considers how many LTD sales you need to break even on your costs. (This can provide a clear financial target for the campaign.)
AppSumo was created by entrepreneurs, for entrepreneurs. We want to see small businesses succeed.
With an audience of over 1.5 million entrepreneurs, a massive email list, and a robust affiliate network, you have a unique opportunity to amplify your product and your reach through our platform.
We’ve got a pretty committed customer base, many of whom trust our platform specifically to deliver quality SaaS tools. AppSumo customers tend to be enthusiastic folks you wouldn’t find anywhere else. On top of that, our Beta-lings are an incredible source of additional feedback, putting your product to the test and identifying potential bugs.
AppSumo has helped brands like Pictory go from 50 to 6,000 users in two months and Komodo Decks sell 6000+ licenses while pushing hundreds of other brands toward success in their own verticals. (More case studies here.)
TDs mean BIG opportunities for businesses to attract customers and drive short-term revenue.
While they also pose challenges that require consideration and strategic planning, you can maximize the benefits of LTDs with a proactive approach.
At AppSumo, we’re committed to supporting partners throughout the entire LTD process. Your success is our success and that means major growth opportunities for your business.
Ready to see what an LTD can do?
How does AppSumo calculate revenue share? We strategically reinvest money made from our revenue share back into resources that help you grow (AKA, everything that fuels your campaign to make it successful).
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