Ken Uchikura’s Newsletter Vol. 93 Recurring Revenue Business Model
9月
10日
Recurring Revenue Business Model
Recurring is a subscription-based business model. For example, in a non-recurring model, if you have $10 a month of new sales, your sales in 12 months will be $120/year. However, if this is a recurring business model, and you have a new customer each month paying $10 per month, at the end of the year your total sales will be $780.
Yes, if you have ‘X’ new customers each month, 78 times ‘X’ is your total revenue in recurring business for the year. So don't laugh because your monthly sales are small. The subscription model has the potential to become a big business as the number of customers stabilizes and grows.
We have always been thinking about developing new products and offering them to many people at low prices. This is what made us who we are. Certainly it looks great and stands out to make big sales on big projects. However, keep in mind that our business is based on a non-flashy subscription model.
Kenichi Uchikura
President / CEO
Pacific Software Publishing, Inc.
ken.uchikura@pspinc.com
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