Have you ever been tempted by a lifetime deal on AppSumo, thinking it’s a win-win for both buyers and sellers?

I used to be, too.

The idea of paying once and using a product indefinitely is enticing.

But after years of chasing these deals, I’ve realized the truth: not every deal is as good as it seems.

For buyers, it can lead to wasted money and tools that never get used.

For founders, it may generate quick cash, but it often comes at a cost.

In this post, I’ll share my journey from deal addict to skeptic and explore whether lifetime deals are truly worth it.

What are lifetime deals?

Lifetime deals offer a one-time payment for lifetime access to a product, typically software.

This business model gained popularity with platforms like AppSumo, founded in 2010 by Noah Kagan. The platform aimed to help startups gain traction and customers while offering users incredible value.

But AppSumo isn’t the only player in this space.

Platforms like StackSocial, PitchGround, DealMirror, SaasMantra, and various Facebook groups also host lifetime software deals, each catering to different niches and audiences.

While these deals can seem like steals, they often involve hidden risks and challenges for both business owners and the founders offering them.

Why are lifetime deals appealing?

Lifetime deals are incredibly tempting for buyers.

Who doesn’t love the idea of saving money and getting a lifetime of access to a tool for a fraction of the cost?

It feels like outsmarting the system.

Plus, there’s the dopamine hit—adding a new app to your arsenal feels productive.

But let’s be real; it’s often just feeding an addiction to shiny new tools rather than focusing on what truly matters.

For sellers, lifetime deals offer a different kind of appeal.

They provide an instant influx of cash, which can be a lifeline for early-stage startups.

This quick funding helps founders gather valuable feedback, refine their amazing product, and build a roadmap based on real user input.

It’s a way to kickstart growth, but it also comes with the pressure to deliver long-term value on a one-time payment.

When do people run lifetime deals?

The global SaaS market could reach approximately $908.21 billion by 2030, with a compound annual growth rate (CAGR) of 18.7% from 2024 to 2030.

For SaaS startups, it presents a formidable challenge to overcome.

Sometimes, when the company’s product isn’t gaining traction despite its best efforts, the founders often turn to lifetime deals to give it a push.

Let’s consider how these deals can be beneficial and the various motivations behind offering them.

• Immediate cash flow: It’s a way to inject some life and cash into a product that’s struggling to find its audience, especially when organic marketing strategies aren’t yielding the desired results. This can be crucial for sustaining operations and funding further product development.
• Capitalizing on product potential: Sometimes, the product isn’t great. It’s mediocre, and the founder knows it. A lifetime deal can offer a way to maximize short-term profits before the product inevitably fades away while cultivating a loyal user base that may even support future projects.
• Feedback and improvement: Offering lifetime deals during the beta testing phase allows founders to collect quick cash and gather essential feedback from early users. This helps identify bugs, suggest improvements, and refine the product.
• Establishing user base: Lifetime deals can help build a loyal user base that will contribute to the tool’s development and support in the long run.

It’s a win-win as long as the founder genuinely plans to continue developing and supporting the tool.

Are lifetime deals profitable for the founders?

After making its debut in 2019, HeySummit decided to offer a lifetime deal through AppSumo.

The result?

In just two weeks, they pulled in a whopping $140,000 in revenue. And that’s not all—it also boosted their annual recurring revenue by an impressive $100,000!

Lifetime deals can be a quick win for founders, providing an immediate influx of cash. However, the real challenge lies in making the product sustainable over the long term.

As you can see in the tweet below, a person generated $50000 with the help of LTD.

💡 Some products launched on AppSumo, like Baseline, UserGuiding, Studiocart (one of the best sales funnel builders), and even Mailshake, have turned out to be successful. However, maintaining growth post-launch depends on how well the founder can sustain growth.

If founders keep returning to platforms like AppSumo for quick cash injections, it’s a red flag.

It suggests that the product might be struggling to maintain momentum, relying too heavily on lifetime deals for survival.

A crucial factor in the success of a lifetime deal is the product’s operating costs. Software with low recurring expenses tends to fare better in the long run.

For example, digital tools like small calendar booking apps or graphic design software that leverage the user’s browser resources can sustain themselves for years, possibly even decades.

👎 On the other hand, AI-powered tools, especially those dependent on costly APIs like AI content writers or image generators, often face financial strain.

Ultimately, they might burn out, leading to the dreaded scenario where lifetime deal buyers become dead weight, draining resources without contributing to ongoing revenue.

Founders who don’t account for these long-term costs may find themselves forced to take drastic measures, like pushing out lifetime deal users, leading to significant backlash and a damaged reputation.

Wondershare Filmora is a good example of that.

In late 2022, the company found itself in hot water when it tried to switch up the terms of its lifetime deal for its video editing software.

They attempted to limit lifetime users to older software versions and charge extra for updates. This move didn’t sit well with the Filmora community, leaving many feeling deceived and upset.

The backlash was so intense that the founder had to backtrack on these changes and issue a public apology.

Some founders even launch separate products just to escape their lifetime deal obligations or change their terms in sneaky ways to sidestep their commitments.

In the end, a calculated approach is essential.

Founders need to weigh the immediate benefits of a lifetime deal against the potential long-term challenges, especially when dealing with high-operating-cost digital products.

Why I don’t generally recommend you to get lifetime deals?

Well, here are some obvious reasons that you may already know:

• Short-term focus: Many product owners run lifetime deals just to get quick cash. This often results in a lack of focus on growing the product, often leading to its eventual end.
• Risk of inactivity: There’s a risk of your account being closed if it’s inactive. Over time, lifetime deals may turn inactive.
• Product evolution: Some developers might start on another product in a similar line or release a new version of the product, trying to get rid of a lifetime deal audience.

These are only the surface level problems.

As I took a step back from my business and life over the past two years, I realized why I was buying so-called exclusive deals:

• Shiny object syndrome: This is the attraction to new and shiny products, which can distract from truly necessary tools.
• Clever procrastination: Buying a deal at a discounted price can feel like you’re making progress, but often you aren’t.

😉 This is similar to the fallacy of how opening multiple browser tabs and switching between different apps can feel like work, but at the end of the day, it’s not. It doesn’t contribute to actual productivity.

Use the best tool for the job

In the age of disruption, there can be only one big player in any one specific niche.

For example, when it comes to graphic design, Canva is the best.

I personally invested in countless graphic design apps that offered lifetime deals, but all of them are a waste.

Now, I’m paying for Canva because it’s highly worth it. For the price, you also get generative AI features.

You may have saved some money in the short term, but in the long run, many people came back to Canva.

Think about all the lost energy, assets, and designs because of this.

Here’s another example to consider:

For AI content generation, I also invested in countless AI content writing tools. If Jasper had offered a lifetime deal for $1,000, I would have bought it.

But now, I simply use ChatGPT and Notion AI for my text generation needs.

96% of even the so-called growing and well-funded SaaS companies will not be there in the next 5 years.

They may either shut down, or they end up as features in much bigger software like Google Workspace, or Notion!

When to get lifetime deals?

While I don’t frequently purchase lifetime deals, there are exceptions.

In fact, in the last two years, I bought, I guess, 2-3 amazing deals (unsurprisingly, all of them outside AppSumo).

If a deal has a real productive use case now, based on my recent projects, and it makes me highly productive and fills a gap in my workflow, I buy it.

For example, I recently bought a lifetime deal on Voicenotes (non-aff) by Jijo Sunny, who has a track record with the company Buy Me Coffee.

It uses OpenAI Whisper API to transcribe my voice and beautify it with a specific tone using AI.

I knew it would drastically increase the speed at which my thoughts would get transferred to digital text.

As a content creator, that was an immediate necessity.

🙂 I know that the money I pay for the app goes 100% to the founder. This helps make the app future-proof versus relying on platforms like AppSumo.

Even if the app disappears in the next one to two years, I would still find value in what it provided during its lifespan.

Finally, when in doubt, I won’t buy any app!

I ask myself: “Does it help me to speed up the top 20% of the high-priority actions that I do in my business?”

No?

Skip it.

For example, I don’t buy any web scraping tool (just hoping it’ll come to use someday!) if I’m not a cold outreacher.

I say “No” and move on.

I don’t buy deals in the hope they will grow someday and drive results. That mindset is outdated.

Conclusion

At the end of the day, lifetime deals can be a double-edged sword.

I’ve been there, drawn in by the allure of saving money and stocking up on tools, only to realize that not all deals are worth it.

While they may offer a quick win for founders, without careful planning, they might lead to long-term challenges.

I’ve learned to be more selective, focusing on tools that genuinely enhance my workflow and align with my priorities.

My advice?

Don’t let the excitement of a good deal cloud your judgment.

Ask yourself if it truly serves your goals or if it’s just another distraction. It’s okay to pass on a deal, even if it feels like everyone else is jumping on it.

In the long run, being intentional will save you more than just money—it’ll save you time and energy.