In this episode of the Business Lunch podcast, Host Roland Frasier and guest Richard Lindner break down the subscription trap and why recurring revenue isnโt always the ultimate solution itโs made out to be.
From the outside, subscription models look like a dream: predictable cash flow, higher valuations, and a business that doesnโt start at zero each month. But as Roland and Richard reveal, the reality can be far more complicated.
They dive into real stories from their portfolio companies, showing how recurring revenue can backfire through hidden churn, customer support debt, and endless innovation demands. Youโll hear how even big players like Netflix constantly battle to keep customers engaged, and why smaller businesses often underestimate the true cost of service.
This episode is a must-listen if youโre considering shifting to a subscription modelโor if youโve already launched one and want to make sure itโs sustainable.
HIGHLIGHTS
โRecurring revenue is greatโฆ until youโre losing more members each month than you know how to gain.โ
โThereโs voluntary churn, where people cancel. But the killer is involuntary churnโdeclined payments, expired cardsโthat can quietly eat your business alive.โ
โIf youโre creating content subscriptions, pair them with community. Access is the real value that keeps people sticking around.โ
โDonโt fall in love with the model. Define your business by who you serve, not just how you charge.โ
Mentioned in this Episode
The difference between breakage vs. consumption models (think Netflix vs. gym memberships)
Why AI in customer support is changing the economics of subscription businesses
How to tell if your business should pursue a bolt-on subscription or avoid it altogether
๐ง Whether youโre launching your first subscription offer or scaling an existing one, this episode will help you see beyond the hype and make smarter decisions for long-term growth.
Timestamps:
00:00 โ Intro & The Subscription Trap
02:10 โ Should Every Business Go Subscription?
04:58 โ Understanding Churn & Retention
07:52 โ The Innovation Challenge
10:23 โ Cost of Service & Support Debt
13:35 โ Smarter Models: Community + Content
19:31 โ Key Questions Before You Launch
CONNECT
โข Ask Roland a question HERE.
RESOURCES:
โข 7 Steps to Scalable workbook
โข Get my book, Zero Down, FREE
To learn more about Roland Frasier ๐ https://msha.ke/rolandfrasier/
Connect with me on social:
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๐ผ LinkedIn: https://www.linkedin.com/in/rolandfrasier/
Subscribe to Roland Frasier ๐ https://www.youtube.com/channel/UCkHnnFgdaTCg8KBd7W_LGSw?sub_confirmation=1
Mentioned in this episode:
Join Roland & Ryan at Get Scalable Live
If youโre a founder, CEO, or operator running a 7- or 8-figure business, Get Scalable Live was built for you.
This is not your typical business event. Itโs 3 days of hands-on strategy, real-world frameworks, and next-level networking with the smartest operators in the game.
Event Link: https://business-lunch.captivate.fm/gsl
๐ November 18โ20, 2025
๐ San Diego, CA
๐ Hosted by Ryan Deiss, Roland Frasier, and Richard Lindner
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