Lifetime Premium Membership Offer

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Lifetime Premium Membership Offer

Postby x » Sat Aug 24, 2013 12:29 pm

So, I've been using your services and absolutely love how much it has simplified my life.

That said, as with most online services such as yours (where the load on your servers from a single user is so negligible), I would really like to see an option for use to pay X amount, and have a lifetime premium account with you guys. I'm a recent political economy major who has done a fair amount with online services and programming, and I have become truly convinced that this option is good for business.

It was very unlike me to pay for a year of your service to begin with (but I felt like you guys deserved to be paid for this awesome product you guys have created); but I've spent some time looking at other services recently, and will likely be switching to a different service unless a lifetime option is added. The reason the lifetime option is good for you guys? (1) There are users (such as myself) who will use the service for free (or not at all) unless a lifetime option is available. (2) There is some number N that is equal to the average number of years users pay before deciding they no longer need your service, no longer need to pay for your service, etc.; if you price your lifetime option at a higher rate than that, there will be a number of people who are paying for more of your service than they otherwise wood. (3) As with gym memberships, people who (like myself) dislike the feel of reoccurring payments will pay for the lifetime account and either not end up really using it, or using it in such a manner that it doesn't affect your servers in any measurable way. (5) A large number of people will choose not to enroll in the lifetime option (a vast majority of them, really) and so you will still have many users ultimately paying you more money over the course of their lives than if they had decided to purchase a lifetime account (by paying every year).
*(6) The sixth reason, at least for me personally, is that when lifetime accounts are an option and I enjoy the service as much as I do yours, I buy premium accounts for my friends and family (most of whom almost never take full advantage of the service).

In short, there is definitely a way for your team to employ such a feature/option in a way that is not only beneficial for myself, but helps grow your business.

Thanks for your time!
x
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Re: Lifetime Premium Membership Offer

Postby jpenny84 » Sat Aug 24, 2013 2:11 pm

You can prepay for up to 10 years currently.
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Re: Lifetime Premium Membership Offer

Postby x » Wed Aug 28, 2013 10:04 am

Although I understand why that might seem like it renders all this moot, it doesn't. It doesn't really matter how many years you can pre-pay for; it's still recurring payments (and I plan on living longer than 10 years more).

I'd also like to suggest that the fact that LastPass allows you to purchase a 10 year account is them basically employing the business element of LastPass I mentioned--that many people will pay much more in one lump sum than they would ever come close to paying with recurring payments.
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Re: Lifetime Premium Membership Offer

Postby Hammerice » Fri Mar 27, 2015 12:07 pm

Good day, i would like to check if there is any updated on Lifetime premium Membership. I would like to get couple of account for all my family.
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Re: Lifetime Premium Membership Offer

Postby as14 » Sat Mar 28, 2015 11:09 am

I would also like to see an option to purchase a lifetime subscription. Paying for 10 years in advance seems silly when there is no discount or anything. May as well just pay every year for the next 10 years. No incentive for anyone to buy 10 years at once.
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Re: Lifetime Premium Membership Offer

Postby jpenny84 » Sat Mar 28, 2015 11:10 pm

as14 Wrote: No incentive for anyone to buy 10 years at once.


Prepaying protects you from future price increases.
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Re: Lifetime Premium Membership Offer

Postby as14 » Sun Mar 29, 2015 1:26 pm

jpenny84 Wrote:
as14 Wrote: No incentive for anyone to buy 10 years at once.


Prepaying protects you from future price increases.


It also harms you if prices decrease. And you have to give money to lastpass 10 years in advance, so you lose out on interest for that time period (not that it is much, but it is still a loss), meaning real cost is more than $12/year when you factor in the cost of tying up your capital. I see several negatives, and no real advantage (they may never increase price...or may increase price less than the cost of 10 years worth of interest....hard to predict)
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Re: Lifetime Premium Membership Offer

Postby joris57 » Mon May 25, 2015 1:05 pm

Just a quick note to let you know I have abandoned LastPass due to lack of a perpetual license.
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Re: Lifetime Premium Membership Offer

Postby k3V!n » Fri May 29, 2015 6:12 pm

Advantages for LastPass offering a lifetime subscription option:
1 - reduced overhead - no need to process those transactions ever again - at a minimum it is costing you the broadband traffic, the per transaction fee and factoring to process the payment. You may be able to negotiate a better rate with the company that processes your payments if the amount is over an agreed minimum; i.e., the 3% you pay for each $12 transaction might be reduced to 2.5% for transactions over $75 - You are also paying for the network traffic which costs you the same for a $12 transaction as it does for $100 transaction - Cost of IT systems (applications and hardware) to manage your business - People required to answer questions to purchasers Many times the question is the same whether it's for a 1 year subscription or a lifetime With luck, you never have to pay human to talk to the customer again
2 - Established customer base - Everyone who buys a lifetime subscription is your customer for life. That means they aren't looking at the services offered by your competitors. Also, a new competitor may be heavily bankrolled by vulture capital. The easiest and least expensive way for them to get customers is to BUY them; i.e., buy YOUR company - The value of your company is primarily based on the number of subscribers you have - While your lifers aren't a source of Premium subscription income, they are the prime customers as the bigger company that bought you rolls out additional products
3 - Unanticipated income - Let's say you sell the lifetime subscription for $120. 1000 users take you up on it. That's 10,800 you get to deposit that you had not anticipated. It's not in the budget! Because you're paranoid you invest it in something safe yielding 2%. That's $216 that didn't cost you anything, didn't increase the load on your servers, etc. It's as if you signed up 18 new users. Of course, if you do a lot better than that, say get 10,000 people to sign up, then you're looking at $108,000 laying around in cash - Companies looking to feed on smaller companies for growth have a special warm spot for any company that has cash on the balance sheet.

The rest of this is just some experiences from my prior consulting and business diary:

I would like to add my voice in support of a lifetime membership. It's extremely rare that a subscribe to any service or product that requires repeating payments. Of course, right now LastPass fits my needs particularly well. I feel a level of loyalty as for several years I was able to do everything I needed to do with a free membership (the fact that you offer a free membership is evidence that the load and traffic created by a single user is negligible in your business model). I opted for a Premium membership when LastPass began supporting Android. Still, every first of the year I worry that I am going to miss that email or not update my billing info and have to go throw a substantial process to rescue my account. A lifetime account makes that whole worry go away.
Additionally, with several other services creating tools (mostly by analyzing LastPass and developing from your model) competitive products are increasing daily. There is always the question of whether LastPass will be acquired by one of these other companies that is heavily bankrolled (the cheapest way a business gets customers is to buy them through the acquisition of a competing business that's too small to say "no"). If I have prepaid 10 years of service the takeover company can usually wriggle out of LastPass' obligation simply by stating that the service LastPass offered no longer exists. However, I have discovered that when a takeover happens, the new company MUST honor lifetime obligations of the takeover target. I don't know the law behind, but it really came to my attention when Delta Airlines bought Western Airlines. I had a lifetime membership to Western's Horizon Club (private lounge, private check in, free drinks and munchies, clean bathrooms, TV, etc). Delta tried to avoid offering those of us who had signed up an equivalent membership in their Crown Room. FTR - Airline clubs are a huge profit center and for those of us who fly a lot, a great way to streamline travel. If you don't believe me, next time you travel pay the shocking fee for membership during your travel. Although your wallet will be screaming, your body and mind will be saying, "I'm pretty sure it was worth it." All I can remember is that people who had prepaid their membership at Western were offered Delta membership through the end of the year, regardless of the term they had prepaid. Any subsequent years were lost. Delta was forced to give all of us who had lifetime memberships equivalent access to the Crown Room. I still have my card today and I always appreciate the pampering.

Another benefit for you is that the cost of the Premium membership is a paltry $12. Even if it should go up, most of us won't respond violently. You, however, have to go through the entire accounting procedures for this amount of money as you would for a $120 transaction. It probably costs you about $3 in office overhead to process the Premium membership renewal and verify/maintain rights and privileges (based on standards with time and motion studies). With a lifetime account there would be no need to run the decision tree, you would simply BUN and continue. Simply stated, since you don't have to determine if this user is up to date, you save a few cycles on the CPU, I/O traffic and the "lifers" actually get a couple of milliseconds faster service.

One of the few subscriptions I have purchased is with PLEX. I have been a free customer for about 7 years, but again, it was the mobile access that triggered the upgrade. Additionally, I receive new and more capabilities. Recently PLEX became Amazon Fire TVs go to DLNA application. With that, development at PLEX has taken off. By offering lifetime subscriptions they were able to acquire a sizable chunk of money. I'm sure a lot of it went into development, but a sizable portion may have been invested providing the company with another source of income: interest income and increased values if they have invested wisely. Even at a lowly 2% should 1000 customers opt for a lifetime subscription at $120 (just throwing a number out there) you would enjoy an income of $2,160/year that would be new money. That's like acquiring 180 new Premium customers with ZERO impact on resources or office activities. You don't even have 180 new customer records that someone might be tempted to hack!
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Re: Lifetime Premium Membership Offer

Postby k3V!n » Fri May 29, 2015 6:24 pm

jpenny84 Wrote:You can prepay for up to 10 years currently.


If I pay for 10 years today each of those years will cost me $12. Meanwhile if I pay each year as it comes that $12 gets whittled down 2-3% through inflation and currency devaluation. Here's what that looks like if we decide that we're going to lose 2% (24 cents) of the value of that $12 every year the "real costs" of each year are as follows:

Year 2 - $11.76
Year 3 - $11.52
Year 4 - $11.28
Year 5 - $11.04
Year 6 - $10.80
Year 7 - $10.56
Year 8 - $10.32
Year 9 - $10.08
Year 10 - $9.84

Of course, if a substantial number of customers are looking for the lifetime subscription and LastPass fails to offer it, that pretty much demonstrates a level of disregard for those users. This will be more effective in prompting those users to check out alternative services than any actual technological benefit might.

juss sayin'
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