When subscription fees trump usage-based billing

11/23/2009 | StartupCFO.ca (Canada)

Revenue models that charge per use work only for companies that have a unique product, Mark MacLeod writes, pointing to PayPal and Skype. But for more businesses -- wireless phone companies included -- fixed fees are the real cash cows. "You won't make money if you just run the meter and rely on usage. We are bombarded with choice these days. We come and go from new services all the time," MacLeod writes.

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