They’re probably thibking of something like: I buy x seats or x installs for $A/month.
I charge a one time fee of $B to people to use in perpetuity, but require that when they’re not actively using it (or build it into my resell layer software) that a seat is released for someone else.
The assumption is that even though people pay the lifetime fee they won’t actually use it for a lifetime. Some might use it for 20 years and some for 5 days.
In that margin you hope to make a profit where SUM($B) > SUM($A).
Most of finance is financial products that look like this in one way or another.
Comments
They’re probably thibking of something like: I buy x seats or x installs for $A/month.
I charge a one time fee of $B to people to use in perpetuity, but require that when they’re not actively using it (or build it into my resell layer software) that a seat is released for someone else.
The assumption is that even though people pay the lifetime fee they won’t actually use it for a lifetime. Some might use it for 20 years and some for 5 days.
In that margin you hope to make a profit where SUM($B) > SUM($A).
Most of finance is financial products that look like this in one way or another.