Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.
Cracking the Code
OCTOBER 10, 2008
This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Ramping up too quickly will burn precious cash reserve and could sink the business.
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