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How money comes in

Learn the tradeoffs between the core startup business models and pricing structures — recurring revenue vs. take-rate vs. billable hours, and per-seat vs. usage vs. free-to-paid pricing.

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SaaS Subscription

Customers pay a recurring monthly or annual fee for ongoing access rather than buying a license once, so revenue compounds as you add customers and they renew. It's predictable and easier to raise on, but revenue is rented, not owned — churn directly erodes what you've built, and you must keep delivering value to justify every renewal. It's the default choice for most software startups, but only works if churn stays low enough that growth isn't just replacing what you lost.

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