Imagine this: You're looking for a new platform to use for your digital marketing (think: website, social media, funnels, graphic design) when you spot a one-time payment deal for lifetime access.
Your eyes widen, your heart races, and you think to yourself, "Wow, this is the deal of a lifetime!"
It's tempting, right? Who wouldn't want to pay just once and enjoy unlimited access to all the goodies a platform has to offer? It sounds almost too good to be true.
Well, it is too good to be true.
Let's take a moment to analyze why such a "deal" might not be the golden ticket it seems to be.
In my history of working for and with SAAS (software as a service) start-up platforms, I've seen these one-time payment deals over and over again. They pop up for two main reasons...
Reason #1: Start-ups Leverage One-Time Payments to Boost User Numbers for Investors
Before a start-up can get investors they need to prove there is market interest in their platform.
They prove this by having a large number of people sign up for their platform.
It's like dressing up a storefront to draw customers in - the more people they have on board, the better they look to those willing to invest in their growth.
Now, let me share a little secret with you. Once you've made that one-time payment and you're locked into their platform, things might not be as rosy as they seemed at first. As the start-up receives an influx of funds from investors (if they can get them at all), they'll begin making updates and changes to the platform. And guess what? Your access and functionality may not keep up with the pace of these improvements.
Why? Well, you paid for access to the platform before...not in the future.
Remember that time you bought a new gadget, only for it to become outdated within months?
That's similar to what could happen with your one-time payment platform deal. You expected continuous enhancements and top-notch features, but instead, you find yourself stuck with a version that doesn't quite meet your expectations.
Reason #2: Start-ups May Offer One-Time Payments to Stay Afloat Amid Financial Struggles
Have you ever faced a situation where you needed a quick cash infusion to keep things running smoothly? Well, start-ups often face similar challenges. Their finances might not meet projections, and they need an immediate boost to stay afloat.
This is where one-time payment deals come into play.
While the deal might look appealing on the surface, the start-up could either be on the verge of collapsing or not planning to provide a consistent level of service to its customers. I remember a friend who signed up for a lifetime subscription to an online learning platform, only for the platform to shut down after a year. That "lifetime" deal suddenly turned into a short-term disappointment.
What Happens After You Buy a One-Time Paid Platform? The Unfortunate Surprise
You've already learned about how you could be locked into a certain level of access or functionality when you buy platform access with a one-time payment, but here's another twist:
You might be phased out of your platform access altogether unless you transition to a monthly payment plan. Let me explain.
You buy platform access with a one-time payment. Everything seems perfect at first - you're enjoying the features and feeling like you've made a smart decision. But then, a few months or even a year later, the platform announces a change in its pricing structure. Suddenly, your "lifetime" access isn't so lifetime anymore.
Now, you might be wondering, "Why would they do that?" or even "Isn't this a breach of their terms of service?" Well, it's simple - companies evolve, and their business models change. And sometimes, those changes can lead to surprises for their customers. And, often, they only need 30 days to inform you of these changes.
In the first start-up I worked with, this exact scenario happened. The first users they had for the platform paid for lifetime access. The pricing model changed to subscription-based within a year and a half. At first, the lifetime access users were limited in what they could do with the platform, but eventually, they were phased out of their access altogether.
Those customer service emails were...not great to have to respond to.
Subscription Models are the New Normal for Online Platforms: Pros and Cons
Over the past decade, the subscription model has become the new normal, and there's a good reason for that!
Pros of Subscription Models
- Continuous updates and improvements: Unlike one-time payment deals, subscription models ensure that you'll always have access to the latest features and updates. This keeps your platform fresh and relevant, helping you stay ahead of the game.
- Scalability: As your needs change over time, subscription-based platforms can often be easily adjusted to match your requirements. Whether you need to add more users or access advanced features, subscriptions provide the flexibility to grow with you.
- Predictable expenses: With a monthly subscription, you can easily budget for your platform costs. No more worrying about unexpected fees or price increases!
- Customer support: Subscription-based platforms typically offer better customer support, as they have a vested interest in keeping you happy and subscribed. You can expect quicker responses and resolutions to any issues that may arise.
Cons of Subscription Models
- Recurring costs: Yes, subscriptions mean you'll be paying a monthly fee, which can add up over time. However, the value and peace of mind you receive in return often outweigh the costs.
- Dependency on the platform: As you become more reliant on a subscription-based platform, it may become challenging to switch to another service if needed. But remember, this also means that the platform will work hard to keep you satisfied and loyal.
The next time you're faced with a decision between a one-time payment deal and a subscription, think about what matters most to you - short-term savings or long-term success?