“The magic of subscriptions is that if you do build something valuable you are creating a new annuity it's like if people are using it day in and day out they could be using it for a decade... you're not having to reacquire your users all over again like we did back in the paid up front days.”

Subscriptions create an annuity — stop reacquiring users you already earned

Paid-upfront apps reset revenue to zero every year; subscriptions compound it. A user acquired in 2020 who still renews in 2025 cost one CAC for five years of revenue. That annuity math is why optimising retention always beats optimising acquisition, and why founders who grasp it build very different products than those who don't.