Why the subscription model is king
Episode Stats
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Summary
In this episode, I talk about why you should consider adding a subscription to your company and why it could be a game changer for your business. If you don't have a company with a subscription service, then you're missing out on a lot of opportunities.
Transcript
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why should people consider adding a subscription to their company?
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The reason why it's so important is you create what's called durable revenue. People say,
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well, how does that software company get sold for 20X top line revenue and my restaurant is like
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two, three times EBITDA? And I'm just like, because the revenue is durable. Get to a place
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where you have what's called expansion revenue. We've all started with the free product to the
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50 bucks a month. And then you look the other way and it's 400 bucks a month. That's the expansion
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of revenue. And when you can create a business that has that built in, that's when you have an
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annuity, meaning that this revenue base today is worth more in a year, even if nobody wakes up and