"The Most Difficult Thing"

Happy Friday Doriot Community!

High five to the 8 new members this week! ✋ 

🤓 Official Pronunciation of Doriot: dor-ee-oh (What’s up with the name?)

Our Pitch

Bring elite venture to underdogs, outsiders, and non-millionaires—both investors and founders—built on the foundation of Human Alchemy, a disciplined process that transforms bold ideas and capital into valuable outcomes, where mindset, strategy, and execution converge.

Thus, each week, we intend to explore the principles of Human Alchemy, applicable to many areas of life, along with key lessons on the business of venture as the foundation upon which a new venture system might emerge.

If this approach resonates, welcome—there’s much more to come! And if you think others would benefit from this journey, please forward our newsletter!

Human Alchemy - This week’s discussion

“The most difficult thing is the decision to act. The rest is merely tenacity”

Amelia Earhart, the daring aviator who defied the odds with her solo flight across the Atlantic, captured a timeless truth when she said, “The most difficult thing is the decision to act; the rest is merely tenacity.”

Earhart's words reflect a universal principle: the biggest barrier to achieving greatness is often simply the courage to take that first step. Once the decision to begin is made, the real battle is no longer against fear, doubt, or inertia but in the relentless pursuit of the goal.

It’s not about spectacular leaps but about the steady, determined march forward—persisting when the path gets rough, and refusing to give up when challenges arise.

Applying the Human Alchemy formula:

• Mindset: Make the Decision
  If you are receiving inspiration from within to take a new journey but are paralyzed by fear and self-doubt, the only way forward is to make the decision to pursue despite the uncertainty. This decision—a commitment made to yourself and not shared with others until you’ve already made it—is the crucial first step that breaks the inertia and sets everything in motion. Of course, no major decision about one’s life should ever be made without knowing your “why.” Your why has to be strong enough to carry you through the tough times and keep you from quitting. And remember, if your goals are truly audacious relative to your current situation, you will need a miracle or two on your path to success. Those who caught their "break" had no idea when or how it would come; they were simply prepared to capitalize on it through the Human Alchemy formula.

• Strategy: Gather data and make a list

  Research others who have gone down a similar path to decipher how they achieved success. Seek mentorship from those who will not deter you from your goals (i.e., others practicing Human Alchemy) to offer their perspectives and support. Bring all of this together into a list and break it down into tiny steps that you can act upon. Some needs will be out of your control, so focus 100% on what you can control and allow everything else to play out naturally. You’ll add, amend, and delete from this list as you uncover more insights over time. This is your roadmap.

• Execution: Consistency and Adaptation
  Work your list by taking action accordingly. When something doesn’t work, learn from it and try different tactics. Imagine yourself as a scientist, constantly in experimentation mode, finding what works by discovering what doesn’t! It’s the small actions taken every day, not the giant leaps, that will lead to your success.

In every venture, personal transformation, or new endeavor, it’s the decision to take action and unwavering tenacity that ultimately separates those who merely dream from those who achieve. Good luck!

Venture Lesson: Recurring Revenue

By: Gerry Hays

Last week, we discussed the basics of analyzing revenue models. This week, we’re going to focus on the importance of recurring revenue.

Not all revenue is created equal.

A dollar in sales is a dollar in sales, but the more predictable that dollar is the more valuable it becomes. When a startup begins to multiply that dollar by adding new customers and creating a steady cash flow, it reaps the benefits of a recurring revenue stream. And this is what drives future value.

Recurring revenue allows a business to focus on growth rather than constantly chasing new sales to match previous revenue levels. For instance, if a startup generates $1 million in sales with 90% being recurring, it can already bank on $900,000 at the start of the new year, needing only an additional $100,000 to match the prior year’s results. Anything beyond that is pure growth. Compare this to a company without recurring revenue, like a custom software development firm, which starts every year at zero regardless of its previous successes.

Investors favor recurring revenue because it provides predictability about future growth, which translates to higher valuations. The more recurring revenue a company has, the more attractive it is to prospective investors and buyers, who see this as a lower-risk investment. Conversely, businesses relying solely on one-off transactions present a riskier proposition, as there are no guarantees of future income.

What strategies do companies employ to drive Recurring Revenue?

There are a number of strategies that are utilized by by companies to drive recurring revenue. Here are some of the more obvious:

1. Affinity: Loyalty and rewards programs, like Dicks Sporting Goods’ “Scorecard” or Delta SkyMiles, are designed to increase purchase frequency and loyalty, turning occasional buyers into repeat customers. The idea is that customers are rewarded for giving more of their business to one particular company instead of spreading it around.

2. Membership: Companies like Costco and Amazon (Prime membership) offer products at a discount and/or free shipping to those who pay an annual membership fee. This approach is particularly effective for companies selling products that are routinely purchased by customers, helping Membership-based models drive revenue predictability within their customer base.

3. Subscription: A few decades ago, software was sold as licensed seats, with additional revenue coming from optional upgrades. However, this model changed dramatically with Salesforce, which led the shift toward “monthly software subscriptions” that included automatic upgrades—giving rise to the Software as a Service (SaaS) industry. Today, around 80% of venture capitalists invest primarily in SaaS businesses because of their powerful recurring revenue model. Subscription strategies aren’t limited to software; content giants like Netflix and YouTube also leverage subscriptions to generate consistent, recurring revenue.

4. Marketplace: Before the internet, local markets depended on offline platforms like newspaper classifieds and the Yellow Pages to connect buyers and sellers. Today, digital marketplaces have revolutionized this process, enabling people worldwide to buy, sell, and trade with ease. However, building these marketplaces is no easy feat—it demands significant investment and solving the “chicken or the egg” dilemma of attracting both buyers and sellers, with only a few emerging as winners. Those that succeed, like Airbnb and eBay, establish businesses that leverage powerful recurring revenue strategies and dominate their markets.

   

5. Community: Startups that can create and nurture a large, engaged community around their products also unlock a formidable recurring revenue strategy. These brands don't just sell products—they build a loyal following that identifies with their values, culture, and mission. Think Trader Joe’s with its cult-like customer base drawn to a unique shopping experience, Tesla’s community of enthusiasts who champion sustainability and cutting-edge tech, or Patagonia’s loyal customers who support its environmental advocacy. By fostering deep connections with their audiences, these companies don't just drive repeat purchases—they create brand evangelists who fuel word-of-mouth marketing and protect market share.

There are more strategies covered in the QAI program, and smart companies will try to apply as many as possible to drive recurring revenue. The key takeaway is that entrepreneurs should always focus on developing their recurring revenue strategies, as this is what investors are looking for and it’s the pathway to long-term success.

Next week, we'll dive into the concept of “Free” and explore why it has become such a powerful force in shaping modern revenue strategies.

New DVC Released

For DVC Premium Members, we released our analysis of Jurney yesterday, currently raising on Wefunder. 

Have a great weekend everyone!

Sincerely, Team Doriot