Lifetime Subscriptions Are a Bad Idea

Generating reader revenue is paramount for publishers. And getting the equivalent of years of subscription revenue upfront appears to be a great thing. But for the vast majority of publishers, offering a lifetime subscription is a bad idea.

The problem is that you’re trading long-term optionality for short-term revenue. But that’s often the case when building a business. EBITDA doesn’t pay the bills, cash does. And so, generating a large sum of cash ensures you stay alive. So, when you can get two or three years’ worth of subscription revenue from a subscriber, it can be meaningful.