WP Perspectives Issue 27: The Hidden WordPress Growth Engine

In this issue I look at the role of lifetime licenses in the growth of the WordPress ecosystem.

There are things we repeat so often that they become unexamined truisms. Turn them on their head and you’ll find valuable insights. In this article, we’ll consider the common wisdom that lifetime licenses are bad for WordPress. This view has permeated the psyche so deeply that users now badger developers to stop offering lifetime licenses. The thinking goes like this: lifetime licenses are unsustainable; without recurring subscription revenue, the developer won’t be able to work on the product; therefore, people who like and want to use that product in the future must persuade the developer, for the sake of everyone, to stop offering a lifetime license. The name of this newsletter is WP Perspectives, and that is what I am offering. So consider this: lifetime licenses have contributed to the growth and popularity of WordPress.

The Evolution of WordPress Products

In the early days of computing, before the World Wide Web as we know it, there was a software sales and distribution system known as shareware. The idea was that you could try before you buy, and you were encouraged to share the program with friends. Shareware was the precursor to the freemium model that is so popular in WordPress.

One reason WordPress has been so successful is that, unlike Drupal, it has allowed and embraced commercial activity. This meant that a number of early developers were able to monetize their plugins and themes. The lifetime license, with its one-time payment, was an easy option before the rise of robust subscription infrastructure. There was a snowball effect: the prevalence of plugin and theme solutions fueled WordPress growth, which in turn increased demand for plugins and themes. You get the idea. Lifetime licenses were at the center of it.

As the WordPress market grew, investors showed up and acquisitions became commonplace. Outside investors often help developers grow their businesses by providing back-office infrastructure and business consulting, but growth is no longer based solely on organic momentum from within the WordPress community. Today WordPress has grown to the extent that there are programs and incubators that promote the idea of a plugin business to students and new professionals with no prior experience with WordPress or its community. If you are a longtime WordPresser, think about what that means. In any event, as the WordPress ecosystem became a big-money opportunity, there has been a push toward subscription models.

The Situation Today

Many people who are active in the WordPress community, when asked what they do, will tell you they are “agency owners.” When we hear the word “agency,” we think of a busy office with sales, designers, front- and back-end developers, network operations, accounting, and so on. The reality, however, is that most of these agencies are one or two person enterprises, and the average income is well below $80,000 a year. Some may be building websites while traveling with a laptop. Some may be parents working from home while raising children. Many want to work for themselves and get away from the corporate grind. And, of course, a large number don’t live in the United States or Europe, but in countries with lower average incomes. This blurs the distinction between freelancers and agencies, but it is how this group self-identifies.

In an ad hoc poll in the Dynamic WordPress Facebook group, “WordPress Subscriptions: Yeah or Nay?” 18% said, “I’m OK with subscriptions,” while 82% said, “I avoid subscriptions if at all possible.” One person commented that when you use a subscription plugin to build client sites and then switch to a different plugin, it’s like paying alimony: you broke up with the first plugin, but because you need bug and security fixes, you must continue paying. Several commented that they only use themes and plugins with lifetime licenses on client sites for that reason. You keep paying, or you have to go back and redo the client site, often without getting paid for the change.

Let’s face it: few themes and plugins that were popular 10 years ago are still considered best-in-slot. That is the nature of the WordPress ecosystem. Just as sellers feel that a lifetime license is not sustainable, freelancers and agencies feel similarly: it is not sustainable to pay a subscription for a product you are no longer using when building new sites. If a large percentage of buyers avoid subscriptions whenever possible, then it is difficult for sellers to force a change.

These days, a lifetime license is often promoted as a short-term launch hack. However, another characteristic of the marketplace is the large number of new products constantly being released. New Elementor widget kits and new Gutenberg block collections appear every month. Evergreen categories also see a lot of activity: SEO, backup, booking, security, e‑commerce, forms, online courses, and optimization plugins, to name some of the more popular areas. It is difficult for products to move away from a lifetime license when others in the same niche continue to offer it.

Discussion and Conclusions

I’m not saying that I am all-knowing or have all the answers. I’m saying that the popular wisdom that lifetime licenses are bad for WordPress is simplistic. There is a huge range of size and buying power, from enterprise agencies to DIY site builders, but the majority are smaller than people often think. The vast majority of buyers want to avoid subscriptions whenever possible. For a number of reasons, a lifetime license is more attractive to buyers. Even developers who sell plugins admit that, as buyers, they prefer a lifetime option.

It’s fair to ask: if lifetime licenses are so beneficial, why do so many vendors prefer subscriptions? Subscriptions can more predictably fund ongoing development, pay support reps, and cover business expenses. They reduce the risk of a “sell once, support forever” imbalance, especially for complex products that are being actively developed. For established teams serving enterprise clients, subscriptions can be part of a sustainable roadmap. The challenge isn’t whether the subscription model works in general, it’s whether a one-size-fits-all pricing model serves a diverse ecosystem and whether you can get sufficient buy-in to transition to subscription sales.

It is interesting to note that there is no good, comprehensive economic research on the WordPress ecosystem. Pricing is often based on intuition or popular wisdom. If there is going to be a major shift away from lifetime licenses, then we’ll need a new approach to pricing that takes into account the diversity of buyers and sellers.

Lifetime licenses are far more than a launch gimmick. They’re a cornerstone of WordPress’s success among freelancers, agencies, and small businesses worldwide. The marketplace proves their value every day, and for many, they remain the best way to build, grow, and thrive within the WordPress ecosystem.

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From Around the Web

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Deals

• ACPT is a custom fields plugin that is being rapidly developed – Use Coupon DYNAMIC_WP_2024_30 for 30% off.
• Launch Pricing for FluentCart is available. This is the new self-hosted e-commerce solution. An alternative to Woo.
• Greenshift is one of the most powerful Gutenberg block collections. Use coupon DYNAMICWP for 15% off.
• WPVivid is one of the few good backup and migration plugins that has a lifetime license. 20% off using coupon WEBTNG.

What’s Up Next

I’m again taking a look at Gutenberg block collections, with an eye on GenerateBlocks.

Thank you for reading. I’d like to hear what you have to say about the newsletter content and what you are excited about. Feel free to comment or send me an email through the contact form.