I think you mentioned something like the SaaS model is similar to the gym business model in your…
Nate Tsai

I did! I think that was just improvisation on the fly. ;)

In most recurring revenue models you don’t make your profit in the first month; you make it over the lifetime of the customer’s subscription.

So let’s say you need $1,000 per customer to be profitable. If you charge $100 / month, you would need the average customer to stick around for 11 months.