Recurring Revenue Quotes

When I ran a small IT services business in the 1990s, it had strong recurring revenues - yet I couldn't accurately forecast cash flow for even the next few quarters. Small changes in the customer base or losing/hiring a few key employees could create massive swings in cash flow.

When you are skinning your customers, you should leave some skin on to grow again so that you can skin them again.

I like the honesty about direct selling because it openly tells people the way to get rich is residual income: Get paid tomorrow for something you did yesterday - and let it accumulate.

The motivation to start the infrastructure business was to have at least one business that gives you annuity income. Others are services businesses that don't give you annuity income. If you keep the customer happy, you make money. But in a household, if there are five people, keeping all of them happy is also difficult.

Subscriptions is the bulk of our business; ads are nice to have on top of that.

In some respects, the video-game business is a lot like the razor business, which follows a simple model: Give away the razor, gouge 'em on the price of the blades.

They tend to lay dormant for a while but often come back, and then the cheques come in!

If you can find a company that can get away with raising prices year after year without losing customers (an addictive product such as cigarettes fills the bill), you've got a terrific investment.

From a producer's point of view, of course, 'Law & Order' presents an ideal - a show that is almost entirely actor-proof, that can keep going and going no matter what happens to the cast or how many actors demand raises.

The criteria, the only rule you should follow - the only rule - is to never touch a product or service unless, every time it is sold, part of the profit has to come back to you.

You take something like RingCentral. It doesn't need any more money or financing: it is relatively mature, recurring revenue business - not really worried - but you know, we could sell it tomorrow. We have not been in a rush to sell it. We don't care about exits as much. We care about building fundamental value.