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Definitely. SaaS can be ridiculously profitable if you provide enough value that customers stay with you for a long time. I wouldn't have paid "$100 for life" w
by manuelflara 14y ago
Definitely. SaaS can be ridiculously profitable if you provide enough value that customers stay with you for a long time. I wouldn't have paid "$100 for life" when I signed up to Basecamp, but I picked the (old) $12/mo plan. Considering I've been happily using it for 6 years, I've spent close to a thousand dollars already. Pretty crazy.
- jaggederest 14y agoMaybe I'm crazy, but when I see people offering a service for a fixed lifetime subscription, I buy the hell out of it. Like guaranteees on car batteries and mufflers, it's usually a bad deal for the person providing it, with the proviso that you remember to use it.
- lutusp 14y agoConsider this -- if they're offering it and they've been in business more than 15 minutes, it must be to their advantage and not yours. It's like electronic extended warranties and service plans -- retailers offer them because they're money machines.
- niggler 14y agoS/minutes/months/. Early on the prices might be at-current-cost or even a slight loss (to gain traction) and then creep later on.
- manuelflara 14y agoNot necessarily. Sometimes they just need the cash now. Think about the famous American Airlines lifetime tickets: http://articles.latimes.com/2012/may/05/business/la-fi-0506-golden-ticket-20120506 http://articles.latimes.com/2012/may/05/business/la-fi-0506-...
- corry 14y agoThis is true, but for most startups the 'advantage' is that cash now is much more valuable than cash later (since it can be plowed back into growth). It's not that it's more profitable for us to strike sweetheart lifetime deals (it's actually less profitable overall), but by having the money up-front we can grow more quickly. My $0.02