“the people who are gonna be willing to pay that 60 80 100 200 lifetime are the ones who are actually going to use your product for years and years and years... your best users... the average retention of that lifetime user is actually going to be way longer”

Lifetime Offer Buyers Self-Select As Power Users — Their Real LTV Exceeds Average Churn Math

Average LTV calculations miss that buyers of lifetime offers skew toward power users who would have subscribed for 5-10+ years anyway. At typical 50% annual churn, average LTV implies 2 years of revenue — but lifetime purchasers are self-selected to be in the long tail. Astropad never offered lifetime plans, but Matt found this argument compelling enough to reconsider his strong initial stance against them.