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I once worked at a company that did about $50 million / year at 19.95/mo/customer where about 99% of those customers had forgotten they ever signed up. So it is
by poulsbohemian 8y ago
I once worked at a company that did about $50 million / year at 19.95/mo/customer where about 99% of those customers had forgotten they ever signed up. So it isn’t that surprising AM is still in business.
- beering 8y agoAOL?
- poulsbohemian 8y agoNo, but more or less of that era. What was really interesting about it was that while I think there had been some dubious tactics to lure people to the product (before my time), the team I was on legitimately wanted to create a useful / valuable product for customers. Ironically, in the course of doing that it drove customers away as they became aware that they had signed up for this thing they had completely forgotten about. So in the course of making right with customers, that $50+MM/year stream disappeared from the company. There's a business lesson or two in there somewhere, but I'm not sure I like what it might say.
- AlexCoventry 8y ago> I'm not sure I like what it might say. To me it says economic performance isn't everything, and I like that idea.
- NikolaNovak 8y agoThis is not actually an unreasonable business model, and is explicitly the profitability criteria for most gyms / fitness clubs.