Chasing high commission vs low churn: pick your lever

Chasing high commission vs low churn: pick your lever

New to recurring? Two numbers decide your income: the commission rate and the churn rate (how fast customers quit). Beginners obsess over the first and ignore the second.

Compare two tools:

— Tool A: 40% commission, but 10% of customers cancel every month.
— Tool B: 20% commission, but only 3% cancel monthly.

The sticky tool keeps paying long after the flashy one's customers have vanished.

In plain English: a small slice of a long meal beats a big slice of a meal that ends fast.

Example: $30/month, Tool A's customer survives about 10 months ($120 total to you). Tool B's survives about 33 months ($198 total) on a lower rate.

Try today: ask any program one question: how long does the average customer stay?