My Favorite Business Model [subscriptions]

Well exciting times, things are moving, even more so for my buddies at, Analytics 2.0.

They are going to be doing a business partnership with a very large website, which should make their company do over one million dollars in sales.  Not bad, the company has been in existence for about one year right now.  Their success reminds me of the best revenue model in my opinion. 

It is exciting to see your friends move ahead, some of my friends say, they are jealous of me [that i got a house, and some other things].  Well, when I see my friends taking off, I don’t get jealous, I get excited, and apprecative for what they have done.  I’m excited for them, and wish them even more success, even if it means they are going faster than me.  I want my friends to do better than I, so when our friends do good, say thats awesome, and instead of a jealous feeling that someone else is doing more than you [which just makes you feel bad anyways] be excited for them, because as your five closet friends start earning more income, they will normally help you out too by sheer association with successful people.

Especially more true because the project I’m working on now [or actually the programmer i hired] should have a beta test done pretty soon.  I told him if he could get the beta test done by the end of this month I’ll give him another extra $100 cash, we’ll see what happens.  As a friend’s business starts to move, there is always opportunity to build off of it.  One of the things I’m going to do it latch onto their success and they may be helping me market a viable product that will have similar target market.  They are doing my favorite business model, and I’m going to do the same type of model.

So what is my favorite business model, well it clarified the thought after I read Ryan Allis’ book, Zero To One Million, sharp 23 year old, who now has a company that does over 3 million dollars a year in gross sales, – email marketing software. Awesome. He also has the model I love, and which makes so much sense.  So what is it?

My favorite model is from the book, and a quote by Paul J Getty, known for a famous quote, “I’d rather have one percent effort coming from 100 people rather than 100% effort coming from myself.”  You’ll hear that one alot.  But he also said was this, not specific quote. But here it is:

“Build a company that offers a product/service that you can charge a monthly/yearly subscription fee for, that way your new sales are always building off of old sales, and soon you have a massive overlapping residual sales every year.”

That is so awesome, think about it, that is the way I’m going to do it.   My service towards internet entrepreneurs will be something I’m able to take in a monthly subscription from users, and then my sales will continue to build.

This is how now does over 3 million dollars in sales after several years, sales they made 6 years ago are still on the books.  24 Hour Fitness a huge fitness business has reoccurring people who go in every month to work out, they have so many customers now.  Although I can’t disclose how much getclicky is making they are generating sales every month, and pretty soon they will be hitting their 2nd year, and they will be getting new sales on top of their old sales.  Or take Ben Casnocha, a 19 year old entrepreneur out of Silicon Valley, his product is a government feedback generation, their reoccurring software fees are about $10,000 a year, and they have a bunch of customers.  Image those residuals.

My favorite model, an online software product you can sell for a monthly subscription. 

That is what I’m going to do, and it will work, I’m confident in this web 2.0 project when it is released will be the ticket to financial freedom after 3 years of working every day non stop, trying to make something work.  The ants work all season long, lets keep working so we can catch that next boat to financial freedom.

  • Good luck Wes. Let me know if I can be of any help!


  • Felicia Rauelo

    the famous quote that i really like is “its always darkest before the dawn”. in life there are things that gets worst first before it gets better.-

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