If you are a software founder or running a SaaS startup, then you must know about Lifetime deals. Software lifetime deals are part of the marketing strategy that allows you to attract and gain customers for your product. It has become common in the SaaS market to have the best lifetime deals for its customers.
So, to help you know why lifetime deals are important for your business, we have come up with a complete guide on lifetime deals. Thus without wasting time, first let us understand what is lifetime deals and when a lifetime deal is offered.
What Is A Lifetime Deal?
A lifetime deal is a special offer where a product or service is sold to a customer. The term is mainly used for subscriptions to SaaS (software as a service) products. A lifetime Deal is a one-time payment to get access to the software product or service as long as the product is functioning. This deal is commonly offered for the subscription of software and applications. Many entrepreneurs look for a software lifetime deal to get the best tool for their business at affordable prices.
Lifetime software deals are popular because it offers big discount without having to pay any extra fees or charges ever. It is the best option to save money on your software purchase. Also, offering lifetime deals helps to encourage people to become long-term clients.
When Lifetime Deal Is Offered?
Lifetime Deals are offered at the time of product launch. It is a good way to get more eyeballs and early users for your software products. If you are worried about a lifetime deal, whether it will work or not. For that, you can give introductory offers to check the response of the customer towards the product. Affordable software lifetime deals provide more sales in a short period of time, which helps you to gain some cash for your business.
Also, offering a lifetime deal is a great idea when you are running out of cash. To get success it is always necessary to have enough money for your product development and marketing. So, 8 out of 10 newly launched SaaS products come with lifetime deals for their customers. But in recent years many buyers are not satisfied with lifetime deals in the long run. So to clear your doubts let’s check out the pros and cons of software lifetime deals.
Pros And Cons of Software Lifetime Deals
- A better way to get into the market and attract customers.
- Helps you gain more eyeballs and early adopters for your product.
- It is the best way to get feedback and suggestions from early customers.
- A happy customer will refer your product to others.
- It brings more sales for the product.
- You can lower your churn rate as customers are locked in.
- Less transaction fees.
- You get an opportunity to up-selling your features or subscription plans. (Customer will not look for other software products to get additional features)
- A lifetime deal is not suitable for long-term growth.
- Even though you received payment once, you’re still responsible for providing lifetime support to those users.
- A customer’s lifetime value may be less than the cost of maintaining their service.
- No monthly or yearly subscription which means no monthly recurring revenue (MRR) or yearly recurring revenue (ARR).
- A monthly subscription adds more value to the product than a lifetime deal (LTD)
- LTD platform takes a significant cut from your sales. Heavy discounts on LTD can lower your brand value.
How To Plan Software Lifetime Deals?
To be successful in your software business it is necessary to plan the best lifetime deals for your product. For the software business, it is important to have recurring money to sustain in the market. But as a founder or maker, you must be knowing the value of cash flow at the early stage of your software product.
If you’re planning to launch your software/application with LTD (lifetime deal) pricing which means you are raising money in a singular payment. So, make sure you set the right lifetime deal for your software. So, you must consider a few things before setting exclusive software lifetime deals.
Things To Consider While Setting The Price Of A Software Lifetime Deal:
Check if the product is ready:
Before going for a deal launch it is necessary to check whether the software product is fully ready to enter the market. Most online marketplaces run lifetime deals with a refund policy. This means that if the buyer or customer is not satisfied with your software then he can claim a refund. This can subsequently hamper your business as you will be running out of cash.
To avoid such failure in running a lifetime deal, you should make sure your software product runs smoothly. This helps you satisfy the target audience by offering the problem-solving product at the best deal price.
Make Sure You Define Your Deal Properly:
When it comes to a software lifetime deal, people are very curious about what you are offering. Entrepreneurs or freelancers become more demanding when it comes to their expectations from a SaaS (software as a service) product. People who look for LTD are price-conscious users, who want to solve their business problems within their budget.
So, it is necessary to inform them about your offering at Lifetime deal pricing. Also, make sure you clear all their doubts and explain the usage of the product. Every passionate SaaS user knows that there is no forever when it comes to software but they will always look for long-term benefits for their businesses.
Ideally, the user will only pay when he is motivated by the functionality of the product and LTD. So, you need to let them know whether the lifetime deal is for the current version or all future versions of the software. The deal should carry a value matric that helps the user to take decisions.
Look For SaaS launch Platform:
You need to look for the perfect launch platform for your software product. We all know that Appsumo is the giant in lifetime deals. But you can even go for other SaaS launch platforms like BufferApps that cater to a niche audience to get enough traction for your software. Their community of makers, founders, entrepreneurs, freelancers, etc. provides early customers for your software applications.
So, select the LTD platform wisely for your product launch and with a captivating deal.
Black Friday Lifetime Deals :
Black Friday sale is the best time to launch your software product through LTD(lifetime deal) pricing. During the sale, every software seeker looks for the best Black Friday Lifetime Deals to save huge on their software purchase. So make use of this opportunity and bring the best lifetime deals for your buyers.
Along with the many advantages of LTDs, there are also some limitations that a business needs to consider. Risks of software lifetime deals are that users would use your software for a long time without paying regularly. Also, on the other hand, to deliver service consistently and for maintenance you will be paying for it. So, in the long term, the LTD revenue will be less than the value you deliver. To get better value for the software, most companies come with a monthly or annual subscription plan.
To avoid such losses, you can come up with exclusive software deals for a limited time duration and specific users. This helps you to gain early customers and generate revenue for your business. The benefit of software lifetime deals is to boost the business in the initial stages. A business which only plans for a lifetime deal can create doubt in the mind of the customer. They might not fill valuable to pay even though your software is great.
The software lifetime deal strategy places an important role in your product’s success. The best strategy will always help you to sustain yourself in this competitive market.
As you have got to know about Lifetime Deals and the advantages and disadvantages of software lifetime deals. You can sell the software through an LTD(lifetime deal) and can generate cash flow for your business. No doubt monthly or annual recurring fees are the best to value your software products. But this Software Lifetime Deal helps to get more exposure, more eyeballs, early adopters and feedback from customers, which is more important for the product at an early stage.
Also, it’s better to launch your product on Black Friday, as many people wait for Black Friday lifetime deals to save huge on their software purchases. So, it is important to research Software Lifetime Deals before you launch your software product.