Re:We Wasted $50K on Google Ads So You Don't Have To (2019)
by michaelbuckbee on Friday January 24, 2020 @08:58AM
(#22138259)
Inbound -> people coming to the site (instead of salespeople calling them up)
Churn -> people canceling their subscriptions.
Churn Rate -> rate at which they're canceling (ex: 5% a month)
Net Negative Churn Rate -> if the overall dollar amount of people moving from $50/mo plans to $100/mo plans is higher than the dollar amount of people canceling subscriptions.
So while the Churn Rate doesn't change (still 5% a month) the overall monthly revenue is still increasing. This is really hard to do and it's a good indicator that they're making something that people really want and are willing to pay to use.
Churn -> people canceling their subscriptions.
Churn Rate -> rate at which they're canceling (ex: 5% a month)
Net Negative Churn Rate -> if the overall dollar amount of people moving from $50/mo plans to $100/mo plans is higher than the dollar amount of people canceling subscriptions.
So while the Churn Rate doesn't change (still 5% a month) the overall monthly revenue is still increasing. This is really hard to do and it's a good indicator that they're making something that people really want and are willing to pay to use.