Dan Martell - Why the subscription model is king

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00:00:00.000 why should people consider adding a subscription to their company?

00:00:04.080 The reason why it's so important is you create what's called durable revenue. People say,

00:00:08.800 well, how does that software company get sold for 20X top line revenue and my restaurant is like

00:00:14.080 two, three times EBITDA? And I'm just like, because the revenue is durable. Get to a place

00:00:18.960 where you have what's called expansion revenue. We've all started with the free product to the

00:00:22.900 50 bucks a month. And then you look the other way and it's 400 bucks a month. That's the expansion

00:00:26.900 of revenue. And when you can create a business that has that built in, that's when you have an

00:00:31.240 annuity, meaning that this revenue base today is worth more in a year, even if nobody wakes up and

00:00:36.500 does anything in the business.

Dan Martell - October 28, 2023