Emergic: Rajesh Jain's Blog

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Subscription-based Business Models

July 16th, 2004 · No Comments

TJ links to comments by Paul Allen: “I have concluded that the best and fastest way to build another billion dollar company is to create a subscription product that one million people will eventually pay $10-20 per month to use. A million customers paying $15 per month would generate $180 million in revenue. If the company had a profit margin of 25% and a P/E ratio of 20, the company’s market cap would be $900 million.”

This is exactly what we need to do in Emergic – provide hardware, software, content, connectivity and support for $15 per month to homes, SMEs and education markets.

Tags: Management

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