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Strongly disagree with the linked article. Individual customers, and corporate customers, are wildly different. The "buy it for life" business model works ver
by urthor 4y ago
Strongly disagree with the linked article.
Individual customers, and corporate customers, are wildly different.
The "buy it for life" business model works very well if you're trying to launch a mass market product to individuals.
In your first year of a product, those users who'll pay upfront 3 years of subscriptions for a "lifetime pass" are an awe-inspiringly useful customer segment to identify.
They're your way to run experiments to find "what am I doing well and how can I do more of it."
Plus, they're effectively loaning your business money against future revenues. During the first 2 years of your product, that's an amazing deal all round.
Just... never, ever, let corporations "buy it for life." Corporations will exploit by it for life dramatically.
- chillfox 4y agoLooks like short term thinking to me. Great for the next two years, but a problem after that, but hey can always have another job by then so it will be someone else problem.
- urthor 4y agoWell, you gotta make sure only 10% of users purchase. Not 50%.
- hermitcrab 4y agoAre you claiming that offering someone a lifetime license will increase the conversion rate by x 5? if so, that seems incredibly unlikely.
- hermitcrab 4y agoI was talking about never changing anyone for upgrades. Making a special deal for an early cohort is a little different. But what happens if you abandon the product before the 3 years. Do you stiff those users or give them their money back?