Three layers: per sensor, per system, and per channel partner
Per Sensor
Per System
Per Partner
LTV & Stickiness
$122
Annual subscription / sensor
$489 ARPA / 4 avg sensors
$100–200
Hardware cost to meter.me
Mote $100 + sensor varies
$300
Hardware MSRP to customer
Sold via channel partner
Sensor-Level Revenue Streams
meter.me earns RECURRING
Subscription / sensor / year$122
Hardware marginNear passthrough
Marginal cost to serve$0
Software gross margin>95%
Channel partner earns SERVICE
Hardware markup$100
Installation labor$300–700
Warranty & maintenance / yr$100
Revenue typeLabor + service
$489
2025 ARPA / system
Growing → $525 ('26) → $563 ('27)
4 → 6+
Avg sensors / system
Customers expand over time
0%
Churn rate
Zero. Not one customer lost.
Typical System Economics (4 sensors)
Item
Year 1
Year 2+
Subscription revenue
$489
$525+
Hardware revenue (passthrough)
$800
—
Hardware COGS
($600)
—
Hosting & connectivity
($15)
($15)
Gross profit to meter.me
$674
$510
Year 1 includes one-time hardware margin. Year 2+ is nearly pure subscription, >95% gross margin. As sensors expand per system, ARPA grows with zero additional acquisition cost.
How Value Flows: meter.me vs. Channel Partner
meter.me SOFTWARE
Revenue per system / yr$489–563
Gross margin>95%
Marginal cost per customer$0
Revenue scales withCustomer count
Cost scales withNothing (software)
Channel Partner SERVICE
Revenue per system / yr$400–500
Gross margin~50–60%
IncludesMaintenance + warranty
Revenue scales withCustomer count
Cost scales withTruck rolls, labor
At Scale: 100 Systems Under One Partner
meter.me rev
$49K
meter.me cost
$2K
Partner rev
$40K
Partner cost
$20K
meter.me's cost stays flat as partners scale. The partner's economics are strong too: they keep their service revenue and customer relationship. Win-win channel alignment.
Generational Retention
$17,500
LTV per system
$0
meter.me CAC
∞
LTV : CAC ratio
LTV = ARPA / (discount rate − growth rate) = $525 / (10% − 7%) = $17,500 CAC is borne by channel partners. meter.me's direct acquisition cost is near zero.