Lifetime plan vs. subscription model? Sustainability issue
More and more companies are using a subscription model instead of a one-time payment for a product.
Duolingo, CapCut and the like are examples of subscription models (monthly or annual), while DaVinci Resolve, for example, has a lifetime license.
From a customer's perspective, it is most convenient for me to have a Lifetime option, but from a marketer's perspective, I see a more sustainable subscription model for the survival of the company.
On what basis do you decide how to price your product and what form you choose (lifetime vs. subscription)?
When do you think a lifetime is beneficial for the company?
Sometimes I feel like the lifetime option will soon disappear.
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If your product has no recurring costs per user (like LLM API fees), offer a lifetime deal. People are exhausted by endless subscriptions (Netflix, Spotify, Canva — it adds up). They’ll eventually quit just to simplify their bills. You can calculate an amount considering average churn duration, which can even make you more money at the end.
minimalist phone: creating folders
@thisiscetin Agree, if the product remains the same, you can afford a lifetime plan. Otherwise, a subscription is required.
There's no way I could offer lifetime for my app. The app depends on API access and every use takes resources, which of course cost. So despite being niche, it just wouldn't work.
minimalist phone: creating folders
@r221 What API do you use?
Velocity: Prompt Co-Pilot
minimalist phone: creating folders
@aakashpuri They are a fully subscription model, it seems to be sustainable, but I reckon they had to advise with ithe nvestor board to customise it so that it will be profitable.