I had paid $400 for this plan when they were just getting started as a way of supporting them and helping them bootstrap their business. I learned my lesson, however. I had been using their main service for clients at the time and I moved everything away and never considered them again. Absolutely cost them more than the savings they thought they were gaining (probably cost them more than their savings in just the first month).
Indeed. On Facebook, I kept seeing ads for some cloud computer provider offering a "for life" VM for $100. I'm like, first off, that's going to be a very low-end VM. Second, "for life" is probably going to end in <5 years when they discover how much that actually costs them, or the company bombs.
> Absolutely cost them more than the savings they thought they were gaining (probably cost them more than their savings in just the first month).
How is it costing them money if they already got your $400 and aren't paying anything monthly? If anything, keeping you around was costing them money.
The only thing they're losing is lost sales from negative word-of-mouth, but that's very hard to quantify.
This reminds me of 1MB being free and the dev claiming it would last as long as you want it.
I got an email a while back saying it's no longer free.