Chapter
Finding Profit in Service Fees
22:24 - 25:48 (03:23)
Many software companies are finding that adding a layer of service and maintenance to their relatively inexpensive software is proving to be a successful business model. For example, Atlassian, a large company, generates half of its revenue from maintenance and service fees.
Clips
This transcript discusses a successful SEO consultancy that was started by hiring a CEO, opening offices in inexpensive locations, and using blog posts for leads.
22:24 - 23:33 (01:09)
Summary
This transcript discusses a successful SEO consultancy that was started by hiring a CEO, opening offices in inexpensive locations, and using blog posts for leads. The founder's insight came from reading Slack's S1, where he noticed the majority of the revenue came from larger companies and service revenue had larger margins than software revenue.
ChapterFinding Profit in Service Fees
Episode#69 - Paid News, Burning Money & Solving Climate Change
PodcastMy First Million
Some companies have started shifting their business models towards a service fee rather than selling their software, as the revenue from maintenance and service can generate as much as half of a company's revenue.
23:33 - 24:57 (01:23)
Summary
Some companies have started shifting their business models towards a service fee rather than selling their software, as the revenue from maintenance and service can generate as much as half of a company's revenue. Neil Parikh is one of the advocates of this model for his company.
ChapterFinding Profit in Service Fees
Episode#69 - Paid News, Burning Money & Solving Climate Change
PodcastMy First Million
The episode highlights that the way to sell relatively cheap software is by adding on a layer of service and maintenance, and the speaker also mentions their impatience regarding hiring people to accomplish their ideas.
24:57 - 25:48 (00:50)
Summary
The episode highlights that the way to sell relatively cheap software is by adding on a layer of service and maintenance, and the speaker also mentions their impatience regarding hiring people to accomplish their ideas.