{"id":3044,"date":"2013-10-21T16:41:59","date_gmt":"2013-10-21T16:41:59","guid":{"rendered":"http:\/\/insideintercom.io\/?p=3044"},"modified":"2020-07-30T13:03:59","modified_gmt":"2020-07-30T12:03:59","slug":"the-right-type-of-revenue","status":"publish","type":"post","link":"https:\/\/www.intercom.com\/blog\/the-right-type-of-revenue\/","title":{"rendered":"The right type of revenue"},"content":{"rendered":"<p class=\"opening_paragraph\">Don&#8217;t confuse consulting revenue, one-time deals, or charity donations with actual recurring monthly product revenue. They&#8217;re very different beasts.<\/p>\n<p>Articles that boast titles like &#8220;<em>How I built a product in a weekend that makes more money than Quora\/Medium\/Tinder\/etc<\/em>&#8221; always seem to miss the point that a few goodwill gestures are not the basis of a business. They provide a nice quick hit of emotion, but your friends can&#8217;t be your only customers. They&#8217;re the wrong type of revenue.<\/p>\n<p>Just like any teenage rock band is guaranteed a friends &amp; family crowd at its first few gigs, any new start-up is guaranteed a spike right after launch. And in much the same way rock bands start to run out of good will and good friends, start-ups start to run out of customers.<\/p>\n<p>Yes, revenue is important, but only when it&#8217;s the right type. It&#8217;s not the right type if:<\/p>\n<ul>\n<li>they&#8217;re paying to support you, not to get the value your product delivers<\/li>\n<li>they&#8217;re paying for a custom white-labelled version just for them, not the SaaS product you&#8217;ve built<\/li>\n<li>they&#8217;re paying for your time and consulting, not just for your product<\/li>\n<li>they&#8217;re paying a heavily discounted price rather than what you wanted to charge them<\/li>\n<li>they&#8217;re paying because you&#8217;ve promised to add a feature specifically for them<\/li>\n<\/ul>\n<p><a href=\"http:\/\/paulgraham.com\/ds.html\">Doing things that don&#8217;t scale<\/a> is what it&#8217;s all about in the early days, but there are some fundamentals that you can&#8217;t run away from. Getting the right type of revenue is one of them. Until you&#8217;ve sold a product that <em>you haven&#8217;t customised<\/em>, at a price <em>you haven&#8217;t adjusted<\/em>, to a customer that <em>you don&#8217;t know<\/em>, then you&#8217;re not growing a SaaS business. You&#8217;re growing a services business, or a short-term charity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t confuse consulting revenue, one-time deals, or charity donations with actual recurring monthly product revenue. They&#8217;re very different beasts. Articles that boast titles like &#8220;How I built a product in a weekend that makes more money&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"category":[1],"tags":[33,45,151],"coauthors":[348],"class_list":["post-3044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-revenue","tag-saas","tag-startups-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The right type of revenue - The Intercom Blog<\/title>\n<meta name=\"description\" content=\"Don&#039;t confuse consulting revenue, one-time deals, or charity donations with actual monthly recurring revenue from your product. 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