Most businesses started out with two main challenges: getting customers and generating revenue.
A LTD is an offer / business strategy when you sell your product at an upfront price, for a lifetime. There is no recurring charges that your customers will pay, and you will have to maintain the product/service for a 'lifetime'.
This startup thinks that the exposure on a LTD platform (Appsumo, who has over 1.8 million email subscribers) is too good to turn down. They sold $160,000 in two weeks.
Drove excellent product feedback; this startup believes that the initial customers help them to develop their product better and faster than their competitors.
A great strategy to get your first customers and some cash flow coming in. This startup shared that " Getting $89 per sale means 9 months of revenue for my startup".
No recurring revenue. Most SaaS thrives on the monthly or yearly subscription fees to help them to develop/maintain their technology.
Platforms like AppSumo takes a large chunk of your sales. This startup made $214,500 in sales but only pocketed $64,350 as 70% of the revenue goes to the platform.
Lots of headaches; this startup shared the following: " it’s almost impossible to onboard thousands of people to your product within a couple of weeks. Customers who are not supported on time can mob you on many platforms. You can get several times the good reviews you received during the campaign as bad reviews. "
In my opinion, I see LTD as a marketing strategy to get your first group of customers. Most LTD involves SaaS, and not charging your customers a recurring amount of money for a SaaS business is too much for me (costs of upgrades and keeping up with tech).
Love to hear what others think of this strategy.