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TL;DR Most of our customers never heard about churn or LTV. They don't care. You raised this issue probably because you work in the "start-up industry" :) Long
by kemyd 6y ago
TL;DR Most of our customers never heard about churn or LTV. They don't care. You raised this issue probably because you work in the "start-up industry" :)
Long version, from the beginning:
When we started two years ago, the lifetime option cost $60. Why? Because we created an online editor for Bootstrap only, and Bootstrap Studio (similar software then) had a lifetime option, and it cost... $60 (I just checked, and it still costs $60 for a lifetime license).
For proof, you can check the link in my first comment. It's about Bootstrap Shuffle (and that's why today our editor is called Shuffle :)).
Please note that their software (Bootstrap Studio) is a desktop application; they don't have infrastructure cost, etc. But back then, I chose price by comparison.
In the meantime, we added support for Tailwind CSS, Bulma CSS, and Material-UI.
Today, the lifetime option price is related to our LTV and our funding (no VC funding). And that's why we prefer real revenue to imagined/estimated future revenue in excel. ;)
And lifetime option converts a lot better than annual (a mean 2x better). I tested it a few times.
We may remove this option in the future (for new customers only!), but today lifetime subscription is not something that worries us :)