IPVM Celebrates $200,000+ Research Service Contracted ARR In 1st MonthBy John Honovich, Published May 06, 2022, 09:08am EDT
IPVM has contracted $200,000+ in Annual Recurring Revenue in the first month of our new Research Service with 60 organizations signing up (an equivalent of 1,000+ $199 personal Info+ annual subscriptions) compared to ~240 total users canceling (~$40,000 worth).
While IPVM focuses on our reporting rather than our financials, given the scrutiny this move had received, we felt it was important to our subscribers and the industry to understand the results and metrics of this transition.
Research Subscriber Metrics
In the first month, the Research Service has been well received across various segments of the industry, with 21 small businesses signing up for the $480 Research 10 offering, numerous end users, integrators, and manufacturers signing up for a variety of levels, and 9 large organizations at the $10,000 level.
Moreover, we have 400+ total applications, with more applications to the Research Service being received daily and new Research subscribers regularly being added.
Indeed, even a number of people who heatedly criticized the move on IPVM have changed their minds and purchased Research Service subscriptions.
More and more are becoming adjusted to the new model, gaining appropriate approvals, securing budget, etc., our conversations with prospects show.
Criticism And Improvements, e.g., $480 Plan
We are glad that subscribers spoke out, even in criticizing us, as it helped us better explain how and why we were doing what we did, improve the user interface and experience of the services plus create the $480 Research 10 offering, which helps smaller businesses.
Plus, we have now made it self-service for approved small business users to upgrade online, factoring in existing payments/credits one has and using one's existing payment method on file.
Significant Revenue Growth
The significant net growth in revenue helps us to better invest in our own people, products and infrastructure to do the best possible research and improve our reporting and resources that all subscribers access, like our books and tutorials.
Business Model Impact
Business modes are critical. What we have seen with the response is that this is a much better business model to support us in doing the type of in-depth research that is of great value to a small number of people.
Economic incentives matter. We are now much better incentivized to deliver the best research - testing and analysis possible - so we can ensure that subscribers read and benefit from as many reports as possible.
I apologize for the confusion and frustration that many of you (and our team) experienced over the last 2 months. While we provided over a month's notice before this launched, with at least 3 emails to all subscribers about this, it still took many by surprise.
I certainly see why this would be surprising, as the typical tactic is to raise rates on everyone with few media or research organizations having any model like ours.
I do believe this approach is the future for organizations that are committed to delivering the very best research in niche areas, such as we do. And the financial results show this to be the case.
Our outlook with this model in place is stronger than ever. We are now focused on delivering more and even better research, reporting, Design Calculator development, and more.
Questions / Feedback
As we have throughout, we welcome questions, feedback, criticisms, and any ideas to improve our service going forward. Feel free to post them publicly in the comments to this post or contact us anytime.
For those interested, you can apply now.
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