{"id":3939,"date":"2012-04-30T09:00:07","date_gmt":"2012-04-30T13:00:07","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=3939"},"modified":"2012-04-30T08:28:19","modified_gmt":"2012-04-30T12:28:19","slug":"want-to-join-the-billion-dollar-club","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2012\/want-to-join-the-billion-dollar-club\/","title":{"rendered":"What It Takes To Join The Billion Dollar Club"},"content":{"rendered":"<p style=\"text-align: center;\"><img decoding=\"async\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2012\/04\/043012_1225_WantToJoinT1.png\" alt=\"\" \/><\/p>\n<p>With Instagram being valued by Facebook at $1 billion, Patrick Moran took a look at what it took to start your own billion dollar company:<\/p>\n<ul>\n<li>To be valued at a billion the conventional wisdom is that it must have revenue of around $100 million.<\/li>\n<li>However the market seems to be willing to tolerate lower annual revenue if the revenue is growing and recurring.<\/li>\n<li>Recurring revenue is easiest in the world of software where the &#8220;Software as a Service&#8221; model is becoming dominant.<\/li>\n<li>In Software as a Service customers pay a periodic (weekly\/monthly\/annual) fee for a service rather than pay a high up-front cost. The aim is to lock your customers into long term contracts.<\/li>\n<li>A growth rate of 20% is healthy. A churn \u2013 the rate at which you lose customers \u2013 of about 2% is acceptable.<\/li>\n<\/ul>\n<p>To read more details about these requirements, why it&#8217;s important to get Instagram out of your mind, what Oracle, Microsoft, and IBM have yet to get, and the importance of paying top dollar for sales and marketing, click <a href=\"http:\/\/techcrunch.com\/2012\/04\/29\/how-much-revenue-does-it-take-to-be-a-1b-public-company\/\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/techcrunch.com\/2012\/04\/29\/how-much-revenue-does-it-take-to-be-a-1b-public-company\/\">TechCrunch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With Instagram being valued by Facebook at $1 billion, Patrick Moran took a look at what it took to start your own billion dollar company: To be valued at a billion the conventional wisdom is that it must have revenue of around $100 million. However the market seems to be willing to tolerate lower annual [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2012\/04\/043012_1225_WantToJoinT1.png","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/3939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=3939"}],"version-history":[{"count":4,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/3939\/revisions"}],"predecessor-version":[{"id":3942,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/3939\/revisions\/3942"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/3938"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=3939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=3939"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=3939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}