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Almost all the comments are focused on the "recurring revenue" from the side of the business. We're looking at subscription from the point of view of the custo
by pedalpete 4y ago
Almost all the comments are focused on the "recurring revenue" from the side of the business.
We're looking at subscription from the point of view of the customer in our start-up.
We're in the neurotech/sleeptech business, and competitors (Dreem, Philips) were selling products for $500+, and we see other start-ups in the space apparently doing about the same.
We're looking at a subscription cost because it lets us get into the hands of more customers, which means we can bring our production costs down, and everyone wins.
Yes, our LTV, should we have churn right, will be more than the up-front cost, but as we say "I can't help somebody sleep if I can't get them to try the product".
So please don't ONLY look at SaaS from the perspective of the business. For many businesses, it makes more sense from the consumer side as well.