In 2022 the era of “grow at all cost” came to an end, and with it a new era began, the era of the revenue factory. The goal of a revenue factory: is cost efficient growth. The analogy of a subscription business with a factory extends beyond mere automation. Just like a factory that produces revenue growth, a subscription business operates with similar objectives. In fact, the goals of a factory align to those of a recurring revenue business perfectly: The first goal in both factories and subscription businesses is clear: increase output. In factories, this means more production, akin to achieving growth in subscription businesses. Historically this was driven by a growth-at-all-costs approach. Today’s emphasis on sustainable growth in subscriptions mirrors the factory’s aim for efficiency. The analogy further extends to the methods of increasing output: just as factories use different production lines to create a variety of products from the same materials, subscription businesses deploy various GTM motions to diversify their revenue streams.
Jacco van der Kooij, Founder, Winning By Design
Keynote at SaaSiest Amsterdam 2024
