SaaS lifetime deals (LTD) – 101

SaaS Dodo July 20, 2023 57

What is a SaaS lifetime deal?

A SaaS (Software as a Service) lifetime deal is a one-time purchase that grants the customer lifetime access to the software. This means that the customer will not have to pay any additional fees or subscriptions in order to continue using the software.

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Typically, SaaS lifetime deals are offered at a discounted price compared to the regular subscription price, as the customer is making a long-term commitment to the software. Some SaaS companies may also offer additional perks or bonuses with a lifetime deal, such as free updates or premium features.

When should you offer a SaaS Lifetime deal?

There are a few situations when it may be appropriate to offer a SaaS lifetime deal:

When you have a new product that is still in the early stages of development and need to generate a customer base quickly. Offering a lifetime deal can be a great way to attract early adopters and get them on board with your product.
When you are looking to pivot your business model or make significant changes to your product that may not be attractive to current customers. Offering a lifetime deal can help you retain these customers and prevent them from leaving for a competitor.
When you are looking to generate a large amount of revenue in a short period of time. A lifetime deal can be a great way to generate a large influx of cash that can help fund future development or marketing efforts.
When you have a product that has a strong track record of customer satisfaction and loyalty. Offering a lifetime deal to your most loyal customers can be a way to reward them for their support and encourage them to continue using your product.

Pros of SaaS lifetime deals

Increased customer retention: When customers purchase a lifetime deal, they are likely to continue using the service for a longer period of time as they do not need to worry about renewing their subscription or paying additional fees.
This can lead to increased customer retention and loyalty for the SaaS company.
Increased revenue: Lifetime deals often come with a one-time payment, which can provide a significant boost to the SaaS company’s revenue.
This can be especially beneficial for companies that are just starting out or experiencing slow growth.
Simplified billing and customer management: With a lifetime deal, the SaaS company does not need to worry about managing recurring payments or tracking customer expiration dates.
This can save time and resources, allowing the company to focus on other areas of the business.
Positive customer experience: Lifetime deals can be viewed as a good value by customers, as they can save money in the long run compared to paying for a subscription on a monthly or yearly basis.
This can lead to a positive customer experience and potentially increased word-of-mouth marketing for the SaaS company.

Cons of SaaS lifetime deals

Reduced revenue potential: Lifetime deals often offer a one-time payment for access to a product, rather than a recurring subscription.
This means that a SaaS company may not have the opportunity to generate ongoing revenue from a customer.
Limited customer lifetime value: Lifetime deals can limit the lifetime value of a customer, as they may not continue to pay for the product over time.
This can make it difficult for the company to predict and plan for future revenue.
Limited upsell opportunities: With a lifetime deal, there are limited opportunities to upsell additional products or services to the customer.
This can impact the overall profitability of the company.
Decreased customer loyalty: Lifetime deals may not encourage customer loyalty as much as a recurring subscription model.
Customers may be less likely to continue using the product if they feel that they have already paid for it upfront.
Limited flexibility for pricing changes: Once a lifetime deal is offered, the company may not have the flexibility to change the pricing or offer additional pricing tiers.
This can limit the company’s ability to adapt to market conditions and changing customer needs.

Why should you offer a SaaS lifetime deal?

There are several reasons why offering a SaaS lifetime deal may be beneficial:

Customer loyalty: By offering a lifetime deal, you are essentially committing to providing the service to a customer for the rest of their lifetime. This can foster a sense of loyalty among customers and help retain them for longer periods of time.
Increased revenue: A lifetime deal typically requires a larger upfront payment than a monthly or annual subscription. This can provide a significant boost to your revenue in the short term.
Predictable cash flow: Lifetime deals can provide a more predictable stream of revenue, as customers will continue to pay for the service indefinitely. This can be helpful for managing your business’s cash flow.
Brand reputation: Offering a lifetime deal can be seen as a sign of confidence in your product and can improve your brand reputation. Customers may be more likely to trust your product if they know it will be available to them for the long term.
Competitive advantage: By offering a lifetime deal, you may be able to differentiate yourself from competitors who only offer monthly or annual subscriptions.
This can be a compelling selling point for potential customers.

Strategies in How to Launch SaaS Lifetime Deals

Build an email list: Start building an email list of potential customers well before you launch your SaaS lifetime deal. This will allow you to send out a targeted email announcing your launch and offering a special deal to your list.
Use social media: Utilize social media platforms like Twitter, LinkedIn, and Facebook to spread the word about your SaaS lifetime deal.
Share updates and teasers about the launch to generate excitement and anticipation.
Partner with influencers: Consider partnering with influencers or industry leaders who can help promote your SaaS lifetime deal.
This can help you reach a larger audience and gain credibility for your product.
Offer a limited-time deal: Create a sense of urgency by offering your SaaS lifetime deal for a limited time only. This will encourage potential customers to act quickly and purchase your product.
Offer a money-back guarantee: Offering a money-back guarantee can help alleviate any concerns potential customers may have about your product.
This can give them the confidence to make a purchase and try out your SaaS lifetime deal.
Use paid advertising: Consider using paid advertising platforms like Google AdWords or Facebook Ads to reach a larger audience and drive more traffic to your SaaS lifetime deal.
Utilize customer testimonials: Use customer testimonials to showcase the benefits and value of your SaaS lifetime deal.
This can help potential customers see how your product has helped others and encourage them to purchase.
Offer a free trial: Consider offering a free trial of your SaaS product to give potential customers the opportunity to try out your product before committing to a lifetime deal.
This can help them see the value of your product and encourage them to make a purchase.

Types of SaaS Deals

There are several types of SaaS deals that companies may offer:

Perpetual: This type of deal provides a user with access to a SaaS product for the duration of their use, even if the company goes out of business or discontinues the product.
Subscription: This type of deal provides a user with access to a SaaS product for a specific period of time, typically on a monthly or annual basis.
One-time payment: This type of deal allows a user to purchase a SaaS product for a one-time fee, rather than paying a recurring subscription fee.
Limited-time offer: This type of deal is only available for a specific period of time, and maybe a discounted price or offer additional features or benefits.
Limited-use: This type of deal provides a user with access to a SaaS product for a limited number of uses or a specific period of time.
Freemium: This type of deal allows a user to use a SaaS product for free, but may require payment to access advanced features or remove limitations on usage.

Top 12 SaaS Lifetime Deals websites & companies

Conclusion

Lifetime deals is an attractive option for some SaaS companies as a way to drive growth and acquire new customers and it is integral part of SaaS Growth Strategies .

However, it’s important to carefully consider the potential risks and drawbacks of offering lifetime deals as well. For example, offering a lifetime deal may result in a lower overall lifetime value (LTV) for each customer, as the company will not be able to generate recurring revenue from those customers.

Additionally, SaaS companies need to be prepared to continue providing high-quality software and support to customers who have purchased lifetime deals, as customer satisfaction is crucial for driving growth and retaining customers over the long term.