New vs renew

Suppose there is a software product that sells brand new for $99

And once you own one you can update it for 50% off

If you can attract 500 new users every year then you should go after new users since you earn more money than if 500 existing users renew. 2x as much.

Now suppose you adopt Apples full price renewal model ?

New or renewals now bring in the same amount of revenue.

So who should you focus on ?

Marketing 101 tells us it’s easier to sell to people who already use your product. And it’s easier to upsell them since they already have experience with the product. The cost to get those people to update to a new version should be lower than the costs to attract new users.

And existing users might care more about bug fixes than new features. They might actually have a more balanced preference.

Just a thought