Introduction to Capitalism's Favorite Business Model - Recurring Revenue

Steve Keifer, CMO of Ordway, explains how businesses have shifted from selling things “as-a-product” to delivering them “as-a-service.” Some of the best examples are industries such as media and entertainment (think Netflix and Spotify) and technology (think Salesforce or AWS). The biggest driver for the shift towards as-a-service is the desire to increase recurring revenue. Investors award premiums to businesses with recurring revenue due the predictability and consistency produced from the long-term contracts with fixed monthly fees.

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