For many software companies, running a lifetime deal is a great way to generate quick revenue and increase brand recognition.
But is it really a sustainable business model?
On paper, it may seem like the perfect solution; however, the underlying benefits of a lifetime deal might not be so clear-cut.
So why should a SaaS Startup bother running a Lifetime Deal when it is not a sustainable revenue model?
Lifetime Deal is Not a Sustainable Revenue Model
There is no moment of truth or a surprise reveal. Running a Lifetime Deal is not a sustainable revenue model.
But it doesn’t stop there. Running a Lifetime Deal should not be considered a revenue model at all.
A lifetime deal is more of a marketing channel for SaaS startups, rather than a revenue-making strategy. And it should be treated like any other marketing channel like PPC ads where you spend money or SEO where you put effort to see results in the long term.
Only, a lifetime deal is more of an unconventional marketing channel where the money comes in as a byproduct.
Lifetime Deal is a Unique SaaS Marketing Channel
A Lifetime Deals is a unique beneficial addition to your SaaS startup’s marketing strategy.
It can help you acquire new customers quickly and cheaply, as well as give you the opportunity to upsell these customers in the future.
SaaS startups and founders should not only accept that a Lifetime Deal is not a revenue model, but they must also beware of it. Otherwise, treating a Lifetime Deal as a revenue model can affect your product and business growth for a long time to come.
One of the major risks is that you may end up selling too many lifetime deals, thereby reducing your long-term revenue prospects. Additionally, if the lifetime deals are not properly managed or monitored, there is a risk of abuse which can have serious financial implications for your business.
However, as a SaaS marketing channel, a lifetime deal offers a unique benefit by providing an opportunity to acquire new customers at a low cost. It also allows for upselling of these customers in the future, which can help increase revenue and profits.
Additionally, this type of marketing strategy can help increase brand recognition through popular deal sites and word of mouth.
This can be beneficial in the long term by increasing customer loyalty and allowing you to stand out from the competition.
Why is Lifetime Deal a Powerful SaaS Marketing Channel?
Lifetime Deals is a powerful marketing channel since it allows you to understand your target market and your audience.
Once you go live with your lifetime deal, your target audience will come your way to engage with you. By properly planning your Lifetime Deal duration, you can make the most out of your engagement with your potential customers.
And the more you engage with your LTD customers and audience, the more you can increase the reach of your Lifetime Deal and your Brand visibility for all the right reasons.
Moreover, by offering a lifetime deal, SaaS companies can incentivize customers to become early adopters and brand advocates. Thereby inducing a sense of loyalty to the product and the company in your LTD users, which can lead to positive reviews, referrals, and repeat business.
A Lifetime Deal is an effective SaaS marketing channel, but it should not be considered a sustainable revenue model.
A Lifetime Deal is more of an unconventional marketing strategy that can help acquire new customers while increasing your brand visibility. Still, managing and monitoring the lifetime deal is essential to ensure long-term success.