A Smart Bear · Jason Cohen
articleprincipleHow annual pre-pay creates an infinite marketing budget
14 July 2024Profit
Source excerpt
About A Smart BearDozens of founders have used this technique to transform the cash-flow of their businesses. Now it's your turn.
This is a limited feed-provided excerpt, not the full original work.
Apollo layer
What a founder can learn
Founder takeaway
Use annual pre-payment to bring cash forward, then reinvest that cash into marketing rather than waiting for monthly subscription revenue to accumulate.
Why it matters
Payment timing can constrain or accelerate growth. Collecting revenue upfront may improve cash flow and give the business more capacity to fund customer acquisition, though the economics still need to remain sustainable.
Put it to work
Model an annual pre-pay offer: what discount or incentive would customers require, how much upfront cash would it generate, and how much could you responsibly reinvest in acquisition?
Private notes