Glossary
What is a lifetime deal (LTD)?
A lifetime deal (LTD) is a one-time payment for permanent access to a software product, instead of a subscription. Startups use LTDs, often through marketplaces such as AppSumo, to raise cash and get early users quickly. The risk is serving lifetime customers forever without recurring revenue.
How LTD marketplaces work
Marketplaces like AppSumo list software deals to an audience of deal hunters. The marketplace takes a share of revenue and sets the purchase terms. Deals usually come in tiers with usage limits.
Pros and cons
| Pros | Cons |
|---|---|
| Upfront cash without investors | No recurring revenue from those users |
| Many users and feedback fast | Support load forever |
| Reviews and social proof | Deal hunters may not be your ideal customers |
| Validation of demand | Can anchor your price low |
Limiting the risk
- Cap usage (projects, seats, credits) so heavy users still upgrade.
- Exclude costly features, such as AI usage that costs you per call.
- Limit the number of codes sold.
- Run it once, early, rather than repeatedly.
Example
A bootstrapped tool sells a capped LTD to 800 buyers, funding six months of development. A year later, 15% have upgraded to subscriptions for more usage; the rest cost little because of the caps.
FAQ
Is a lifetime deal good for a SaaS?
It can fund early development; it can also create a long-term support burden without revenue.
What does AppSumo take?
A revenue share that varies by deal and terms.
Do lifetime deals include AI usage?
Often with caps or credits, since AI costs scale with use.