Pricing model
Lifetime deal (LTD) pricing model
Lifetime deals charge a one-time payment in exchange for permanent access. They produce a cash spike that can fund initial development — and a customer cohort that costs money forever after. Most indie SaaS founders regret LTDs within 18 months. The framework below names when LTDs work and when they do not.
Verified · editorial policy
How the model works
Customer pays once (typically $49-$499) for permanent access to the product. No recurring revenue from that customer. Revenue is concentrated in the launch window; support cost continues indefinitely.
Best for
Pre-launch validation (capture intent and cash, refund if you cannot deliver). Distribution-channel partnerships (AppSumo, StackSocial) that drive volume. Products with very low marginal serving cost where the LTD cohort is small relative to the eventual paying base.
Worst for
Established SaaS with healthy MRR. SaaS with non-trivial infrastructure cost per customer. Products where the LTD cohort would be more than 5-10% of the customer base — the recurring revenue lost is structurally permanent.
Unit-economics implications
- Cash-positive in the launch window, cash-negative for the LTD cohort's lifetime thereafter.
- LTD customers consume support indefinitely without further revenue.
- MRR-based valuation is hurt by LTDs — the cohort never produces recurring revenue.
- LTD cohort often produces low-quality referrals (other deal-hunters), not target-customer referrals.
Common implementation mistakes
- LTD at a price below 12-24 months of equivalent subscription value. Math does not work; the LTD cohort becomes a permanent cost.
- Unlimited LTDs without a cap. The cohort grows beyond the company's ability to serve it sustainably.
- LTD without a clear migration path. When you eventually move off LTD, existing LTDs feel betrayed.
- LTD with no usage caps. Heavy LTD users consume disproportionate infrastructure.
Positioning trap to watch
LTD often hides 'I need cash now and I am willing to pay for it forever'. The honest version: take a bridge loan against future MRR instead. Or run a presale (refundable if you do not deliver) at a normal price. LTD is rarely the best solution to the cash-now problem.
Frequently asked
- Should I run an LTD on AppSumo to validate my product?
- Validate with pre-orders refundable if you do not deliver. Same cash, different mechanics, no permanent-cost cohort. If you do choose AppSumo, cap the deal aggressively and price the LTD at 24+ months of equivalent subscription value.
Other pricing models
Diagnose the page, then pick the model
Pricing model is downstream of positioning. The free diagnostic labels which Brunson failure mode your page hits; the right pricing model follows from the positioning.