Interesting post and I tend to agree. Even in SaaS businesses, I think having a recurring contract is overrated and likely actually reduces revenue at the expense of stability.
Would love for you to go deeper on this part though:
'The company we acquired was the premier provider that was best positioned to capture that growth. In the case of a downturn, we talked to several marketing firms to confirm it would be economic for us to buy jobs (cost per lead x conversion rate)'
I'm pretty deep in martech and ad-tech, and wondering a) how you did this analysis and b) what process they went through to be confident without actually running a test campaign on presumably google ads
I definitely agree that non-recurring revenue can have predictable cash flows -- it's a lot more work to figure out which business have this and the dynamics associated with them!
Interesting post and I tend to agree. Even in SaaS businesses, I think having a recurring contract is overrated and likely actually reduces revenue at the expense of stability.
Would love for you to go deeper on this part though:
'The company we acquired was the premier provider that was best positioned to capture that growth. In the case of a downturn, we talked to several marketing firms to confirm it would be economic for us to buy jobs (cost per lead x conversion rate)'
I'm pretty deep in martech and ad-tech, and wondering a) how you did this analysis and b) what process they went through to be confident without actually running a test campaign on presumably google ads
I definitely agree that non-recurring revenue can have predictable cash flows -- it's a lot more work to figure out which business have this and the dynamics associated with them!