> that takes continual work, so the only way to make that possible is to somehow provide ongoing funding.
Not really, perpetuities have existed for a long time in finance, even longer has the concept of ‘time value of money’ existed.
You can turn $3m in revenue today into a US treasury bond portfolio that delivers $120k a year. That’s enough to pay for maintenance and minor development of new features.
You can also say: I’ll just charge 120k a year in fees infinitely. But it has the same present value (see time value of money) as 3m today. These worlds are interchangeable, only in the upfront world there is no risk that some of your customers walk away at some point making further upkeep untenable for the remaining customers.
Not really, perpetuities have existed for a long time in finance, even longer has the concept of ‘time value of money’ existed.
You can turn $3m in revenue today into a US treasury bond portfolio that delivers $120k a year. That’s enough to pay for maintenance and minor development of new features.
You can also say: I’ll just charge 120k a year in fees infinitely. But it has the same present value (see time value of money) as 3m today. These worlds are interchangeable, only in the upfront world there is no risk that some of your customers walk away at some point making further upkeep untenable for the remaining customers.