Jason Cohen via Microconf -

Crux:

PREDICTABLE ACQUISITION of RECURRING REVENUE with ANNUAL PREPAY in a GOOD MARKET creates a CASH MACHINE

What is predictable acquisition?

Find people that want your service right now. Reach out to them and talk, get their feedback. ⁠Do this before starting the project. ⁠Decide how it is valid to charge a lot of money. ⁠Don't reduce the amount. ⁠Use discounts/coupons. ⁠Money-back guarantees, no free trials.

What is recurring revenue?

% of the revenue that is fixed in the next months. No starting from zero for revenue each month.

What is annual prepay?

Annual plans discounted on per monthly basis and costly per-month plans. So what happens is if even though few customers buy the annual plan, you have cash in hand and can use it to grow the business. ⁠Try increasing the number of paying customers to as large as possible.

What is a good market?

B2B - consumers are shit and won’t pay a penny. Naturally recurring, pain inducing market, customers must continously feel pain. ⁠Minimum virality, maximum stability of products. ⁠Absolute clarity of who’s the buyer and who’s the seller. ⁠After markets like apple app store, salesforce, heroku, etc. ⁠Extensions of an already established market that help extend certain functionalities.

What is a cash machine?

Pretty easy to understand!