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Every subscription business has a hard ceiling on its size: new customers per month divided by the cancellation rate.
Drawn from what Jason Cohen said
SubjectSaaS
What Jason Cohen actually said
- Jason Cohen Founder of WP Engine and Smart Bear
So let's suppose you add 100 customers a month and you have 5% cancellation. So 100 divided by 5% is 2,000. So a company like that will never have more than 2,000 customers.
Added to korrents 7 Sept 2026 · How quotes work · Something wrong? Tell us
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