Everyone wants "Passive Income." Everyone wants the holy grail of Monthly Recurring Revenue (MRR). But in the early days, MRR is a trap. It builds too slowly to pay your bills.
You don't need $500 a month. You need $30,000 now to hire a freelancer, run ads, or just buy yourself 6 months of runway to work full-time.
Mike, a founder with five SaaS apps making $200k/month, uses a specific strategy to fund every new launch: The Private Lifetime Deal (LTD).
Why You Need an LTD
When you launch, your product is likely buggy and incomplete. Asking someone to pay a subscription for a buggy product is a hard sell.
- Subscriptions require a polished product.
- Lifetime Deals require a promise.
Early adopters will pay you a lump sum ($99–$299) for the future potential of your tool. They know it's beta. They are paying to be part of the journey.
The Mike Playbook: Raise, Then Close
Mike raises $30,000 to $100,000 upfront for his apps (like Curator and Frill) using this method. Here is the protocol:
- Set the Price: Charge between $99 and $299. Never give away free accounts. Free users complain; paying users give constructive feedback.
- The "Private" Launch: Do not put this on your public homepage forever. Offer it to your waitlist and early communities (like Indie Hackers or LTD Facebook groups).
- The Cap: Limit the deal to the first 50 or 100 users. This creates urgency.
- The Closure: Once you hit your cash goal (e.g., $30k), kill the deal.
Why You Must Kill It
You cannot survive on LTDs forever. You need to switch to subscriptions eventually. Mike uses the LTD cash to fund Content Marketing (SEO articles, videos) that will drive the long-term subscription business.
The LTD is not the business model. It is the Seed Round—but instead of giving equity to a VC, you give software access to your early believers.
The Protocol: The Cash Injection
- Add a "Founding Member" tier to your pricing page today.
- Price it at $149 (One-time).
- Email your list: "I am moving to subscriptions only on Friday. Get lifetime access now."
- Use the cash to survive the "Valley of Death."