Not exact matches
While a
high customer acquisition cost (CAC) could make sense if those customers generate consistent, long - term
revenue — like in a
subscription - based business — most startups can't afford to indulge in
high CAC.
The four critical factors are: (a) businesses with recurring
revenue bases — like a renewable
subscription — are far better than ones dependent on constantly securing new customers; renewals are much easier and less expensive to secure than new sales; (b) customer retention is absolutely critical — all customers are very costly to acquire and very easy to lose in a world of almost infinite choices; (c) businesses based on products that require constant replacement or renewal (the «razor blade» model) are much more attractive than durable goods businesses (like selling refrigerators) where the products have very long repurchase or replacement life cycles and where the market could even fairly quickly reach saturation points; and (d) businesses that offer products or services that had a predictably
high rate of obsolescence were much more attractive than those where the products had long, useful lives.
One other worrying element on its Q2 income statement is its cost of
revenue for
subscriptions which, at 34 %, is substantially
higher than the same cost for products at 4.6 %.
Apple originally had planned to pay music owners 71.5 % of Apple Music's
subscription revenue after the trial period ended, Re / code previously reported, which was «a few percentage points
higher than the industry standard,» to account for the longer trial period.
CBS Corp, which is in tough merger talks with Viacom Inc, topped
revenue and profit estimates on Thursday, helped by healthy ad sales and
higher revenue from affiliate and
subscription fees.
I think a lot of these business models are moving towards a
higher percentage of
subscriptions, where the people who are getting the most value from you are contributing a disproportionate amount to the
revenue.
New York Times Co. on Thursday reported a 66 percent surge in profit for the first quarter from last year on
higher revenues reflecting strong growth in the company's digital
subscription business.
Most of the industry's $ 1.4 billion in yearly
revenues comes from
subscription fees, even though most of the
highest - traffic sites are free.
The addition comes after a successful 2017 for Tinder — new Gold
subscriptions have driven
high revenues at the dating platform.
IHS is also optimistic about the PS4's overall profitability saying that «lower research and development costs for PlayStation 4 hardware, additional
revenue streams from online service
subscriptions and a more aggressive transition to
higher margin digital content sales are combining to strengthen Sony's games business outlook even in the face of increased competition from cheap Android consoles and alternative devices eating into consumers» gaming time, including smartphones and tablets.»
-LSB-...] the combined earnings for the
subscription service for Sony and Xbox — PlayStation Network and Xbox Live, respectively — generated around $ 3 billion in
revenues last year, and has proven a key component in transitioning consumers to the
higher - margin side of the business in digital distribution.
«The professional division... saw strong
subscription revenues in its large legal business, WestLaw, but further declines in its
high - margin print products, dragging operating profits in legal down 6 per cent.
Revenue in the Thomson tax and accounting business was also up significantly, led by Checkpoint, InSource and UltraTax, reflecting strong new
subscription sales and
higher retention levels.
I think a lot of these business models are moving towards a
higher percentage of
subscriptions, where the people who are getting the most value from you are contributing a disproportionate amount to the
revenue.
The average
revenue per paying user also increased slightly between periods primarily due to an increased mix of sales towards our
higher priced
subscription plans, including our new Dropbox Business Advanced plan.
«The connection is not terribly clear, but presumably Apple wants to drive more
revenue from
subscriptions and
higher - value content in general, so this may be a move to bias affiliate - driven traffic in those directions,» he told the E-Commerce Times.
Instead of generating
revenue from fees, Robinhood relies on interest accrued in user accounts plus a fee - and tier - based
subscription model for users who upgrade to Robinhood Gold for
higher instant deposit amounts and access to borrowed funds for trading.
SUMMARY Skilled marketing professional focused on exceeding
revenue goals, driving
high - volume new user acquisition and growing
subscription - based businesses.
Skilled marketing and sales professional focused on exceeding
revenue goals, driving
high - volume new user acquisition and growing
subscription - based businesses.