The dangers of pricing in WordPress business models
Tom McFarlin warns against the unsustainable practice of WordPress theme and plugin providers selling lifetime support.
But although the amount of money that the business is making increases over a short time, thereβs not a solid amount of cash flow. That means that eventually, youβre working towards a point where the amount of money coming in is not going to match the amount of money needed to pay the original team and those who offer support.
At this point, there are N-number of people continually asking for support, expecting updates, and so on, but thereβs no money coming in to support that amount of work. That is, the customers have paid a one time fee of $50 for an unlimited amount of service.
Thatβs part of where the problem lies: When you offer unlimited support, youβre not just offering support. Youβre also offering continual updates (because WordPress is under constant development), support for a variety of web hosts (because customers are not one-size-fits all), and youβre placing more demand on the staff of the product rather than on the customer base.
A great conversation on WordPress business models follows in the comments.