John Warrillow: Why a subscription business model will increase the value of your business

John Warrillow author of The Automatic Customer

If you are considering starting a business or have a business with fluctuating revenue and it’s a struggle for you, then this episode is for you.

Today we are talking to John Warrillow, serial entrepreneur who built and exited 4 businesses and sold off one of them to NYSE listed company Corporate Executive Board.

John Warrillow is a hugely successful author with over 20 years of research experience into the small and medium business (SMB) market. You will know John’s books like “Built to Sell: Creating a Business That Can Thrive Without You” and “The Automatic Customer: Creating A Subscription Business In Any Industry” and if you haven’t, you need to.

John founded The Value Builder SystemTM which we’ll talk about in a minute.

What we will also talk about today is why subscription business is evaluated so much higher than other businesses, what type of businesses can adopt the subscription model and how we can do it.



Some questions I ask

  • Why is a subscription model so valuable?
  • Give us some examples of how much more a subscription business is valued at vs a conventional.
  • What are the some of the unusual subscription businesses that you’ve seen?
  • How is running a subscription model different from running a conventional lumps business?
  • What are some of the things to look out for, which is critical in a subscription business?
  • What if you have a business you want to turn into a subscription business?



Resources mentioned in this episode

The Value Builder System is a statistically proven methodology for increasing the value of your company.


Book: Built to Sell

Book: The Automatic Customer


Subscription Metrics mentioned in this episode and applicable to SaaS (Software As A Service)

SaaS 2.0 Metrics by David Skok


The episode with Will Fraser, founder of How a million dollar business was created in five short days.



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