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The author hates subscription services, but the author doesn’t fit the ideal customer profile. Someone who only pays for something once isn’t a customer that a
by dangus 4y ago
The author hates subscription services, but the author doesn’t fit the ideal customer profile.
Someone who only pays for something once isn’t a customer that any company should want to attract in the first place, especially when you consider marketing costs.
The author would pay the LTV or even more, but the author is in the minority. Most people would pay some small amount of money once and then happily never pay another dime. They don’t drop hundreds of dollars on their LTV.
The author used Adobe as an example, and that’s where I should point out that it was one of the most pirated pieces of software on the market. SaaS basically eliminates that issue entirely.
Also, most consumers budget on a monthly basis. Ten bucks a month is easier to swallow than $150 all at once for a permanent copy of something like Microsoft Office.
For businesses, they were buying support contracts anyway, SaaS makes even more sense for them.
So, yes, that’s why everyone is SaaS. These businesses that operate on the model know it’s successful and more lucrative than one-time sales.
You might hate it, but the balance sheet doesn’t.