All revenue is not the same

Too much focus on only revenue can be a very bad thing.

The metrics and focus on revenue have changed in the last 20 years as business have been moving increasingly to subscription models.

Customers only want to pay for value, so the subscription/service model makes sense. Companies that can deliver on this customer need are in great position to secure the best kind of revenue, profitable, recurring and highly predictable. 

So when analyzing revenue, these are at least a few points of view to think about. 

1 - How profitable is the revenue you are generating?

2 - How recurring is the revenue you are generating?

3 - How predictable is the revenue you are generating? 

 

Written by: Jan Ropponen