Remove Advertising Remove Cash Flow Remove Metrics Remove Sales
article thumbnail

A Blueprint for Digital Companies’ Financial Reporting

Harvard Business

The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. However, the real revenue-providing customers are companies that pay for advertisements (they may be called “revenue units”). Many of these metrics are disclosed in Facebook’s financial statements.

article thumbnail

Subscription Business Models Are Great for Some Businesses and Terrible for Others

Harvard Business

Identify the right metrics. In the transactional economy, the most important measures are new customer acquisition and sales. In the digital membership economy, the metrics best apt to indicate success are more likely to be around member churn and engagement. Subscription is a pricing structure. Membership is a mindset.