Recurring revenue is one of the four levers investors love. Money that arrives like clockwork. Predictable. Bankable. The kind of revenue that lets you plan instead of scramble.
So when this company introduced a subscription model, it made sense on paper.
But how they executed it left much to be desired.
Instead of adding value, they took the existing experience and put restrictions on it. Want to keep what you had before? Now you need to subscribe.
Many customers refused. They stayed on pay-as-you-go and adjusted to the limitations.
Then the company got clever. They partnered with Amazon and others to bundle the subscription as a benefit. Smart move in theory. Wider reach. Built-in audience. Recurring revenue flowing in from multiple channels.
But here’s the problem.
The core operation broke down.
I haven’t been able to book a single service since November. Every time I try, it says unavailable. Three months of paying for something I cannot use.
Think about what that does to a subscription model.
Amazon Prime works because when you click “buy,” the thing shows up. The subscription is a gateway to reliable delivery. That’s the value exchange.
But when customers pay monthly for a service they can’t access, recurring revenue becomes recurring resentment.
Recurring revenue is powerful. But it’s not a magic trick. It only works when the thing behind it actually delivers.
Otherwise you’re not building loyalty. You’re building a list of people waiting to cancel.
More on that tomorrow.
—————–
P.S. Getting recurring revenue right is one of the core levers in Fall in Love with Your Business Again.
Not just adding subscriptions but building them so customers stay because they want to, not because they forgot to cancel.
If you want early access when we open the doors, click this link to sign up.
P.P.S. I’m not the “systems,” “finance,” or “fix your processes” guy.
I help you fall in love with your business again—Because it finally gives you the life you want today
While setting you up to exit on your terms tomorrow.
Join my list for blunt insights and practical strategies to build the business you need for the life you desire