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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

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  1. 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 25 Jan 2026 · How quotes work · Something wrong? Tell us

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