> but it’s still debt and you have to “service” it by providing products and services that do have a marginal cost. This should be accounted for. Say you sign

> but it’s still debt and you have to “service” it by providing products and services that do have a marginal cost. This should be accounted for. Say you sign a customer for $100 for a year. You should be able to estimate up front that it will cost you $5 in service costs, $15 dollars in support, $5 in ... then you can book the $75 as expected profit. Some of that can be put back into marketing in a short loop. The main difference from monthly is that it takes N months for that revenue to be captured. However you are more certain about it. (Especially in pay-after where you can subtract actual support and infrastructure costs from the revenue.)