Your thoughts on LTDs (Lifetime Deals)
Hey guys!
I hope everyone is having a great day/night.
I would like people's opinions on LTD (Lifetime Deals). Do you love it or hate it? From a personal or business perspective.
I first came across LTD's in the beginning of last year. I did not know there was such a thing and at first I was quite skeptical as I did not see it as a stable way for business to survive as your clients only pay once. While, the business still has to pay recurring expenses such as hosting, development, marketing etc.
However, I do see there are some benefits to LTDs, like an easy way to get a user base, revenue, traction and some brand notability, along with feedback that will shape the future of your product.
I will be sharing my experience of listing my product Dope.Link on LTD marketplaces on another post, but I'm curious to hear on what people have to say about this topic.
From a founder's point of view: I don't like it. It seems not suitable for a well-maintained company on the long run.
But, if you are making stand-alone releases and sell only the release without future updates, LTD's do make sense to me.
From a consumer point of view: I have purchased a LTD for NomadList.com (even though it was pretty high!). I consider myself less-likely to have bought the monthly payment, because this wasn't a necessity to me.
Yes, I totally agree with you. LTDs are not a suitable way to fund a company if it's for the long term. The price also has to be at least 2 years worth of the plan, so the business can continue paying off their expenses.
If the LTD price is low and if they offer it for a long time. I see both of those things as red flags, and it's most probable that the company won't survive in the next 5 years because it's not a sustainable business model to scale.
I believe the advantage is more on the client / consumer side. Imagine having to pay once for a lifetime deal? That's craz(ily good)!
As for founders, entrepreneur, or owner, the advantage is the free advertisement or marketing of the product. A word-of-mouth and 'limited-time only' promotion will hook more people to try and hopefully, buy the product itself.
I view it as a win/win for both the client and founder. However, I only view LTDs as a temporary thing because I don't see companies survive if they offer their LTD price at a low price and if they offer it for a long time. It's not a sustainable business model to scale.