ExitAdvisor Blog

3 Ways to Flip Repeat Customers into Subscribers


Repeat business drives the value of your company, and you can categorize these sales into one of two buckets:

  1. Reoccurring revenue comes from customers who purchase from you sporadically. They’re satisfied with what you offer, and they buy regularly yet not according to a specific timeline.
  2. Recurring revenue is predictable, and you get it from customers who buy on a cadence. Usually in the form of subscription or contract revenue, the main difference is your recurring revenue comes in on …

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One Bold Move That Can Make Your Company More Valuable

Henry Hyder-Smith and Steve Denner started UK-based Adestra in 2004. Adestra is a digital marketing software that helps big companies handle email campaigns, among other things.

The company grew nicely. By 2016, it had around $9 million in revenue and a client list that featured some of the U.K.'s best companies. Hyder-Smith and Denner decided it was time to go beyond their borders and enter the U.S. and Asian markets. To fund the effort, they raised $7.2 million from the Business Growth Fund (…

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Business owners might want to pay attention to the “Writing on the Wall”!


No matter what price a business owner wants for his or her company, the market is the true indicator of what buyers are willing to pay. Selling a business can be very emotional - all the hard work over the years, attachment and loyalty to employees, the profitability in the past, etc., etc. But if the business has been properly presented to the market and there are offers, the business owner must pay attention to "the writing on the wall".  He or she should negotiate hard, but must consider th…

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The Story Behind Jason Flick's $100 Million Sale to WarnerMedia

These days, you're just as likely to watch a football game on a mobile phone as you are on an old-school TV. The technology that enables you to watch your favorite show on whatever device you have handy was made possible by Jason Flick. Flick co-founded a company called You.i TV with a vision to "own the glass." He struck deals to provide the user interface, which enabled content to be viewed across devices with the likes of the NFL, NBA, and just about anyone else who produces original conten…

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How to Turn Repeat Customers into Subscribers

Many people mix up re-occurring and recurring revenue, but one is much more valuable than the other. 

Re-occurring Revenue

Re-occurring revenue comes from customers that have a re-occurring need for whatever you sell and buy from you on an unpredictable yet regular basis. 

Imagine a health food store. Customers come in to replenish their supply of vitamins when they run out. The owner is never quite sure when a customer will be back, but she’s pretty sure they will return when they run low …

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How did you come up with that number?

Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors to examine – equipment, employees, market position, technology – the list goes on and on. Business owners should get a business valuation performed by a professional to get a real sense of market value.

Let's talk confidentially about your bu…

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4 Reasons Why It’s Better to Own a Big Chunk of a Small Company

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Is it better to own a big chunk of a small business or a minority stake in a big company? 

It’s one of the fundamental questions all owners must wrestle with. Owning a relatively small slice of a big pie has worked out well for both Elon Musk and Jeff Bezos, who recently traded places on the list of the world’s richest person. Musk still owns around 20% of Tesla, and Bezos controls about 10% of Amazon, so they both have chosen to sell most of their company to fund their ambitions. The success o…

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Business Owners who “Draw a Line in the Sand” and Refuse to Update their Operations

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Successful business owners are always learning and finding new ways to improve their operations.  But business owners who "draw a line in the sand" and close the door to new methods, new technology and updated equipment can see a drop in market position, revenues and profitability.

As a result, buyers for these businesses will only offer a discounted price, and oftentimes a heavily discounted price.

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How Your Age Shapes Your Exit Plan

Your age has a big impact on your attitude toward your business, and your feelings about one day getting out of it.

For example, one person who runs a boutique mergers and acquisitions business refuses to take assignments from business owners over the age of 70.

He has found that septuagenarians are so personally invested that they can rarely bring themselves to sell their business – frequently calling off the sale halfway through, claiming they just wouldn’t know what to do with themselves …

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How to Create a Recurring Revenue Model That Appeals to Customers

Have you struggled to identify a recurring revenue model that will work in your business?

If so, you’re not alone.

Most owners understand the benefits of recurring revenue, such as predictable cash flow and an increase in their company’s valuation, but struggle with where to start. Just changing your pricing from a one-time transaction to a smaller, recurring fee does not make a sticky subscription model.

The first step of creating a recurring revenue model for your business has nothing to …

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