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Lifetime vs Trial Deals
When your membership base fills up with lifetime members, you increase focus on acquisition and acquiring more lifetime members – instead of trying to please current members.
When customers join for your lifetime membership, you will have around half of the active members that not contributing to long-term revenue. Over the short term that is not an issue, but over a decade you will have countless members with no revenue contribution.
This means you will be expected to create new services and products for members who have not paid you in years. When you do make new products or innovative services, these members will be expecting instant access automatically – no questions asked. In addition, customers may not be incentivized to upgrade their plan, product or service with you.
· Lifetime deal: 80% ($49 one time)
· Your Profit (30%): $14.70 per sale
· 1000 users/accounts: $14,700
· Active users: 500 accounts
Monthly Expenses (5%)
· 5 year expenses: $6,000
· 10 year expenses: $12,000
If your goal is to get some funds for your brand, then lifetime deals might be a good idea.
· Trial: 1 year free
· Renewal Discount: 60% OFF ($96)
· Trial accounts: 1000 users
· Renewal users: 100 accounts
· 5 year expenses: $48,000
· 10 year expenses: $96,000
If you’re looking to build brand awareness, then you don’t have to offer lifetime deals anymore!
Frequently Asked Questions
Can users create multiple accounts?
Can users sign up after after the deal is over?
Is account renewal discount required?
What is commission?
How do I know if my product is the right fit?
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