In the publishing industry, which you're certainly a part of with this substack, the rule for measuring gross *net* income (rather than gross income, which is what you're counting) is to distribute the yearly subscription dollars over the duration of the subscription. To wit, if you promise 52 weeks of content for an annual subscription, after week 1 only 2% of the dollars you received from that subscription are actually yours. The rest represent a liability you have to that customer, which is reduced with each week.
It's a helpful distinction to bear in mind, so that your budgeting correctly reflects what dollars are truly yours--a number that will change every month, to the extent that you have annual subscriptions.
Your post underlines the importance of having a paid launch strategy that is well thought out. Even Lenny Rachitsky wrote about this and how he saw a significant rate of conversion on paid launch day. The other takeaway is creating significant FOMO can increase sign ups too! Thanks for sharing.
In the publishing industry, which you're certainly a part of with this substack, the rule for measuring gross *net* income (rather than gross income, which is what you're counting) is to distribute the yearly subscription dollars over the duration of the subscription. To wit, if you promise 52 weeks of content for an annual subscription, after week 1 only 2% of the dollars you received from that subscription are actually yours. The rest represent a liability you have to that customer, which is reduced with each week.
It's a helpful distinction to bear in mind, so that your budgeting correctly reflects what dollars are truly yours--a number that will change every month, to the extent that you have annual subscriptions.
Stripe does a good job of reflecting that in the MRR. I appreciate your reminder that I accept a year-long liability in return for the $250.
Your post underlines the importance of having a paid launch strategy that is well thought out. Even Lenny Rachitsky wrote about this and how he saw a significant rate of conversion on paid launch day. The other takeaway is creating significant FOMO can increase sign ups too! Thanks for sharing.
Congrats on this acheivement (big spikes of signups). 1.8% of the total subscribers converted in one day is a LOT! Appreciate you sharing this.