Splurge with the profits and you know what happens. With the profits you get from this entity (and all others combined) minus the liabilities, your owner's equity grow in strength. In a scenario where an entity is less likely to be a repeat customer, you have basically secured an investment from him/her/them. However, not all is lost - there is an advantage in that you get an early investment in your product. I will be stating the obvious that in a lifetime license model, you don't get continued flow of cash from the same entity. In a market where consumers can switch brands/vendors easily, who's to say that your existing consumers will be your future customers in the years to come? Economic variables like purchasing power and real income also comes to play. I'm not calling it 'wrong' but more often than not, there's hasty generalization when other factors are not taken into account. Proponents of subscription models also tend to assume that customers will come back. License renewal or subscription models are often touted as the guarantee for flow of income. Since many have done the opposite, I thought of making a small argument for lifetime license model (just for fun).Ĭommon argument against lifetime license is due to the prediction of market saturation. I dislike residuals because I think they are just another scam to get people conditioned to paying 'forever' on crap.Ĭlick to expand.Many seem to echo this statement. If the lifetime wasn't available I wouldn't have purchased it. For example yearly admuncher I think is a ripoff, regardless of how much I like the product, so I purchased the lifetime. When I buy a product, I want to make sure it doesn't come with strings attached as a general rule I try to follow. When I had metrics done on it, I discovered only 20-30% of the signed up folks actually logged in to download the textures, it was then I turned off the service as I considered it unethical at that point. It was only $5-$6 a month but I had 2,000 people that signed up. One of the things we released was a monthly texture pack for graphic designers.
In the 1990s I had a software firm with 12 programmers.
Also statistics show, many people ignore a 'few dollar' charges on their CC for residual services, even if they stop using the service. They DO NOT want you to buy something and then run off, they want to milk you incessantly for more money. Back when I went to marketing and business school we were taught that companies want to drive everything into a residual, they make a ton more money that way. Nobody considered it for anything else, because it was viewed as a ripoff. It was unheard of except for the basics like gas and electric. Just a couple decades ago if you asked anyone about paying monthly or yearly for much, they'd laugh at you. Residual incomes are the driving force of corporate corruption.
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