Thursday, July 25, 2024

Can SaaS Companies Sustain with LTD (Lifetime Deal)

The resilience of the SaaS industry amidst the challenges posed by the global pandemic has been nothing short of remarkable. As many businesses struggled and closed down, the SaaS industry grew a lot because more people needed digital solutions. But for new companies trying to stand out in a crowded market, it has been tough.

Emergence of SaaS Lifetime Deals

As startups strive to gain traction and visibility in the competitive SaaS landscape, a unique strategy has gained prominence—the SaaS lifetime deal (LTD). Basically, these deals let early users get a product forever by paying for it just once. It might seem like a great chance for new companies without much proof or data, but it is simultaneously important to know the good and not-so-good parts of these lifetime deals.

Drawbacks of SaaS Lifetime Deals

Lifetime Customer Support

A significant drawback of SaaS lifetime deals is the commitment to provide customer support for the entire lifespan of the product. Unlike traditional subscription models where revenue is generated monthly, lifetime deals create a long-term liability, obliging companies to support users for an indefinite period.

Mitigation Strategies

  • Implement robust customer support strategies.
  • Consider tiered support options for different levels of lifetime deal purchasers.

The 30/70 Revenue Split

Platforms like AppSumo, popular for launching lifetime deals, often take a substantial 70% of the revenue, leaving SaaS startups with only 30%. Getting a lot of users through lifetime deals can be good, but handling the money part and keeping up with support can be tough.

Mitigation Strategies

  • Explore alternative platforms with more favorable revenue-sharing models.
  • Make the most of the exposure and users you get from these platforms to make money in the future.

Growth Urgency

The lump-sum nature of lifetime deal payments means startups must act swiftly and efficiently to allocate funds for marketing, sales, and development. Urgent growth is necessary to acquire new customers and offset the costs associated with lifetime deal cohorts.

Mitigation Strategies

  • Develop a comprehensive strategy for allocating lifetime deal funds.
  • Plan marketing and sales campaigns before launching the lifetime deal to ensure swift and efficient growth.

Demanding Clients

Lifetime deal clients, often attracted by lower prices, can be demanding. Keeping up with these expectations can be stressful, especially when thinking about the ongoing commitment tied to lifetime deals.

Mitigation Strategies

  • Set clear expectations and communicate product limitations.
  • Listen to customer feedback to enhance the product and build a strong community.

Advantages of SaaS Lifetime Deals

Passionate Community

Despite the drawbacks, the most significant advantage of lifetime deals is the passionate community they foster. Early supporters, inspired by the product’s vision and team, become champions and offer valuable feedback to make the product better.

Leveraging the Community

  • Engage with the community through forums, webinars, and feedback sessions.
  • Encourage happy users to tell others, using the strength of word-of-mouth marketing.

Revenue Cushion

The revenue generated from lifetime deals, albeit in a lump sum, provides a cushion that can be strategically utilized. Startups can expand teams, upgrade features, and navigate the competitive landscape with the financial flexibility afforded by lifetime deal revenue.

Strategic Utilization

  • Plan a roadmap for feature upgrades and developments.
  • Use the extra money to hire more support, developers, and marketers.

Strategies for Success with SaaS Lifetime Deals

Proper Pricing

Pricing lifetime deals requires careful consideration. Multiplying the monthly subscription model by a specific factor can help establish an attractive and fair lifetime deal price.

Creating Tiered Offers

  • Introduce different tiers of lifetime deals with increasing benefits.
  • Tailor offers to cater to various customer needs and budgets.

Refund SOP

Anticipating refund requests is essential. Establishing a clear refund standard operating procedure (SOP) communicates transparency and reduces the perceived risk for potential lifetime deal purchasers.

Managing Refund Requests

  • Ensure multiple team members are well-versed in the refund policy.
  • Use clear communication channels to address and process refund requests promptly.

Specific Coverage Clarification

Clearly defining what a lifetime deal covers helps manage user expectations and reduces confusion. Creating a dedicated FAQ section or page addressing common questions about coverage can be beneficial.

Transparent Communication

  • Answer questions about future updates, switching to subscriptions, reselling, and other important issues.
  • Give clear details to potential buyers to manage expectations effectively.

Upsell Plans

Upselling plans to lifetime deal users presents an opportunity to convert them into monthly or yearly paying clients. This strategy involves introducing premium features or subscription plans that appeal to the existing user base.

Strategic Upselling

  • Develop a roadmap for future product upgrades and features.
  • Time feature releases strategically to coincide with the expiration of lifetime deal benefits.

Dedicated Launch Preparation

Adequate preparation for the launch of a lifetime deal is crucial. Plan ahead, be ready with a helpful support team, and consider using tools like chatbots to handle the influx of questions efficiently.

Effective Launch Strategies

  • Extend the launch preparation timeline to account for unexpected challenges.
  • Ensure a well-prepared support team capable of handling diverse time zones and high inquiry volumes.

Choosing the Right SaaS Marketplace

While some startups opt for a solo approach to lifetime deal launches, partnering with a SaaS marketplace can provide significant advantages. Platforms like SaaSZilla offer expertise, beta testing, and extensive promotion to structure successful lifetime deals.

SaaSZilla’s Contribution

  • Beta testing with community members to refine user experience.
  • Leveraging data and testing to advise on optimal pricing tiers and discounts.
  • Utilizing a passionate community, influencers, and multi-channel marketing for maximum exposure.


To sum up, whether SaaS companies can succeed with lifetime deals is a bit of a puzzle. These deals have their pros and cons, and the key to triumph lies in smart planning, connecting with your community, and handling the challenges that come with lifetime deals. As the world of SaaS keeps changing, diving into lifetime deals is like jumping into a moving river – it can be a great opportunity for startups if you take the plunge with thoughtfulness and wise choices.


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