Should You Offer a Lifetime Deal?
WanNa. Start today's than by explaining why businesses consider offering lifetime deals. The bottom line is, is that lifetime he is often generate a large lump sum of revenue of cash. It's a cash grab really they might partner with a deal signed with large affiliates or they offer it to their list, and because such an incredible deal, it's a lifetime deal. They'll get lots of sales at the start people see this as a way. To Fund, their business at the star. So that's kind of the motivation behind lifetime deals outside of that. It also gives you new users, new customers, people to give you feedback the star and people that are invested. That's really the positives and and there's not really much outside of that. That's positive. Just being frank but for many people, that's a lot. You know making a lot of money at the start to fund the business. Can, really help them and really propel the business to avaiable full-time option for them and allow them to make some hires and scale quickly the issue is that most products and services have a running cost. So even if you say for example, sell a lifetime deal for a thousand dollars per customer yes. You'll earn a thousand dollars, but each customer will have a cost for each subsequent year to come. Agree. Thirty forty, fifty, sixty years for long as that person is alive right and some of us don't really do the math and that leads me to my I tip. You got to do the math. How much does it cost you per customer per year and a lot of people are like well, I sell my product it's course it's a forum it's something that really has a minimal cost on my end. And that's pretty much it. No you gotta dig deeper. You have cost Phantom costs that you're not counting like how much it cost you per customer for your web hosting to host your community to host your APP how much that cost on a monthly basis divided by the number of customers is cost more per customer. It's not a once in done kind of thing, the more traffic you have the more you have to pay what about customer support the more customers you have the more support staff you need the more time take from them you need. To factor that in, are there any other costs whether it's your time or money that's involved every time you have a customer, break it down because you might find out yes. This might be a very small amount per customer in it's worth to offer the lifetime deal but often more times than not when we do the math, you're like, wow, we start to break-even after five years and after five years we're losing money. Then after ten years, we're really losing money. So this really is a red flag that you can raise before you offer a lifetime deal. My next tip is you have to make sure that if you're going to offer a lifetime deal, you don't offer a deal or a plan or a product that they will not outgrow. The play of the lifetime deal is to give them something that is valuable, but is just to get them started. The point here is that get them onto your platform onto your product. And therefore get used to it. Love it enjoy it. But at some point, they're going to outgrow whether they need more contacts in your APP or the want to get access to more training. Basically, we're talking about here is you want to offer them the basic of basic plans. It's still valuable. It's still something that you would charge a monthly or annual basis for normally but. You, WanNa push them towards upgrading anytime. You're running a lifetime plan you should aim for seventy percent of the people that by will upgrade out of the lifetime plan. So lifetime is something that's basically temporary this takes a bit planning the six a bit of a branding and package INC when it comes to offering this lifetime deal so don't rush into a lifetime deal if. You're not ready. Make sure you're crafting the right one. So you know that people will be graduating to different plants off the lifetime. The third thing I want to mention is often in my experience lifetime customers in general, not all of them of course, but in general will tend to be difficult customers to deal with what you mean by that well, people that don't invest much. Will actually cost you more time and more headaches people that actually pay you a lot of money. They do the work that get the most out of it and they're professional they get it. They understand the onus is on them to make it happen. But those who pay the minimum and Gopher lifetime deals people that maybe don't really take action but they will complain about every little thing if they have the opportunity of course, I'm speaking in. Generalities of course, there are lifetime deal customers that are hard working that are serious about their business and they are great and they're not headaches. But if we're talking about a percentage or a majority of the users, higher paying customers are lower maintenance customers that's just the facts of business. So I want to give you some direct advice. If you do the math, you have a graduation plan a plan to get them to upgrade out a lifetime. And everything pans out and it's very, very minimal cost on you. Even if you stretch out of twenty thirty years of this customer being active, then go for the lifetime plan if not avoided if you can even if it means growing slower if you're still looking for that cash grab, my advice is limit the number of lifetime members whether it's one hundred or two hundred people Max and then you. Close it. This will create scarcity and it will also allow you to say, Hey, this is the amount of money I will get from this lifetime offer I can work with us the influx of cash I need, and from there you're only dealing with a minimal number of customers that are dealing with the lifetime planet you have to pay for for the longevity of your business in for their