Purchasing and selling of digital commodities infer a variety of things such as license, legal kinds of stuff, and terms & conditions that we end up reading but don’t understand. That’s why several digital agencies and deal websites frequently use Lifetime Access. It sounds interesting to many and the audience is convinced to purchase a certain commodity or service momentarily. Many do understand that through terms & conditions, payment is done through a single time owning your purchased goods with rights in place. In this article, we will focus on what lifetime access is and how it fits in the digital world.
A Brief Discussion on What Lifetime Access Means.
There are two ordinary ways to vend digital goods. For instance; –
- Lifetime Access- Whereby payment is done through a single time with limitless access to new procurement and updates with no other payments.
- Use of subscription Services-whereby users of a specified commodity or service will be invoiced periodically based on their chosen subscription plan in exchange our clients will have access to new features and updates.
However, when you purchase digital products through lifetime access the period length depends on a commodity to commodity and from service to service. This is normally determined by commodity sustainability. A year might not be sufficient but about five to ten years is a perfect idea. Sellers are tasked with deciding and writing about lifetime access length in the Terms & Conditions documents that most clients don’t read to the end.
According to research done, about 3% encountered problems with the Terms and Conditions over the past four years. The numbers have reduced but if we take a look at a ten-year record the percentage increased from 0.2% to 4%. The ultimate reason is that as opposed to ten years ago at the moment there are twenty-five times more digital products.
As part of a marketing strategy and attribute, Lifetime Access has its pros and cons. Although it brings out a remarkable advantage as opposed to the subscription service strategy.
- Higher chances of cashflow and trouble-free services.
This is a perfect marketing feature and technique that sellers can utilize when providing access to commodities and services to their potential clients. As most of the clients prefer paying once based on what they are offered, this offer increases the number of potential buyers as opposed to subscription-based commodities because there is no entirely good reason to lease digital goods. People that purchase lifetime access commodities or services are happy because they don’t get negative mixed feelings of being defrauded of their monthly payments. This is what is referred to as trouble-free services whereby as a client, you can purchase once and later on make use of your acquisition for some time, you desire.
- Easier Accountancy.
As stated earlier, users prefer payment done based on a single time compared to monthly transactions. This makes money easy to handle. However, not all sellers prefer monthly payments most especially those doing small business. Such businesses are out of both human and financial resources. In as much as monthly subscriptions bring out constant revenue, Lifetime Access still sets the record most especially in small and medium segments.
- Support for your sales and purchases.
As a seller, once you have sold your lifetime product, you don’t have to trouble yourself with maintenance and updates. As a seller, you can focus easily on your next commodity. As a buyer, if you were satisfied with your previous lifetime commodity, you will purchase more lifetime products only if the seller offers you a reasonable price-quality ratio.
- Easy Book Keeping Records.
It’s much easier to manage single payments by keeping records in your books compared to tracking recurring payments.
- Prospective leverage for other commodities.
If you offer Lifetime Access to your existing product line, the revenue stream will be increased ultimately. When you continue to offer amazing products that can attract your clients tcomeswill convince them to pay for digital goods through lifetime access.
- A perfect deal for your clients.
Clients don’t prefer getting monthly charges or invoices. If you price your digital goods right, through lifetime access they will be able to access payment done at a particular time with limitless access compared to subscription services.
Now that we have discussed some of the pros that come with purchasing digital goods through lifetime access, we also have to consider some of the cons that come with purchasing and selling lifetime access to commodities or services. In as much as buyers are not affected that much, sellers have to deal with the risks that come with offering lifetime access when selling their products to their potential buyers.
- As a seller, you can be able to regain your initial costs and adjust ongoing costs with few clients.
- With a high price, an image of dominance authority can be presented in your business causing buyers to see a high level of perceived value in your products.
- Its pricing model is very simple. You can match your clients’ acquisition cost to a revenue fixed amount. Your buyers won’t be caught by surprise because there are no refunds.
- In general, the support burden is light compared to the use of subscription services because with lifetime access you cannot educate a large number of new clients.
- Legal Obligations.
Once the commodity or services you intend to offer presumes lifetime access, the seller is supposed to emphasize on the lifetime access period to his or her clients. It’s also quite important to make it clear on what happens when the lifetime length expires. Client’s that have an eye to detail may pay close attention to the Terms & Conditions document unlike others who don’t and they might end up getting disappointed one way or the other if the lifetime access period length does not conquer to their anticipation. This does happen in the beginning. If the Terms & Conditions are not applied entirely, then trouble commences for sellers.
As a seller, you must ensure that your Terms & Conditions services are clear on the length of the lifetime access, what might happen if you end up discontinuing your purchased product, and what lifetime access is taken care of. You should also specify whether you will be able to maintain your digital product at the moment it’s purchased and what happens if technology surpasses your product or if you end up going out of business. Do not act as a liability by not making it clear to your consumers to what exactly they will be getting once they procure lifetime access. These are some of the things that will require the help of an attorney and it will cost you money for the legal services.
Some of your buyers might be alienated by interpreting something as lifetime but instead limit it’s availability to several years. As a seller, you do not need to appear deceptive or untrustworthy when advertising your digital products to your clients. Ensure that you set your legal obligations right.
- Long Term Cost.
Maintaining your product may cost you a lot of money most especially if you have a few consumers using a commodity that has been listed on lifetime access. For instance, if a certain product has five years of lifetime support and It ends up not been used by the second year by some of your clients, you are still obliged as a seller to provide full support and maintenance for the remaining few clients who are still using the digital product for the remaining years ahead.
Ensure that you know the cost of managing and keeping pace with the commodity most especially if its use substantially decreases. Before providing lifetime access to a certain product ensures that you have revenue costs to cover the said product most especially when your product ends up being obsolete due to technology or if for instance, one customer is remaining using the said product and you are required to provide maintenance services as per the Terms & Conditions agreement. In as much as you are getting paid single up-front from your consumers, it is sufficient enough to manage and cater for your lifetime access product for the period you agreed upon.
- Limited Revenue Stream.
When you offer lifetime access for single-time payment, this doesn’t assure you for future payments. Your consumers might be that they might have little or no incentives to purchase updated versions of your digital products. This being a little bit expensive as opposed to the initial investments compared to monthly payments, your potential consumers with high costs of acquisition might be scared off.
Take a look at the business you give respect and consult on what type of Terms & conditions; they offer to their clients based on lifetime access. This will help you conclude what smart business idea best suits your interests and that of your consumers. If you are thinking of selling online products with lifetime access ensure that you consult with an attorney to help you draft your Terms & Conditions services to cover up any potential contingencies.
- Measures must be taken on refund strategy to prevent fluctuations in cash flow and clients from stealing your business content.
- With high pricing in place, you will only have fewer buyers leading to fewer opportunities when it comes to upselling, cross-selling, and finally list-building.
Some companies have invested with lifetime access to give their clients complete access to over 1200 products such as; –
- Paths and Bundled Deals.
- Certification Programs.
- Real-World Projects.
With no limits. In recent years quality learning has become impossible and a little bit difficult for some people and that is why some businesses have taken a be step into investing in lifetime access with the help of advanced technology to enhance your skills.
Based on the above, selling your products through limited access gives your clients unlimited access to the purchased digital product, free updates, and access to more benefits as commodity or technology advances. It is not always a clear -cut. The seller receives a single time payment. Benefits and risks through this program vary from business to business depending on the course of price, industry and objectives.