Why the Sales Funnel Falls Short for Recurring Revenue Models

Reimagining GTM Alignment with the Bowtie Framework and the Complete Customer Journey

In the recurring revenue world, the traditional sales funnel resembles a map that leaves off the second half of the journey. It guides you to the sale—but not through what happens after. And in SaaS or subscription-based businesses, what happens after the sale is where the real game begins.

Reading Revenue Architecture by Jacco van der Kooij (Winning by Design) reshaped how I think about go-to-market strategy. The book introduces the bowtie model, a framework that bridges acquisition with retention and expansion, forming a holistic system for sustainable growth.


Why the Funnel Model Breaks Down

In subscription-based businesses, closing a deal isn’t the end goal—it’s the starting line. Traditional funnels focus heavily on the path from awareness to purchase but fail to account for where long-term value is generated: in renewal, expansion, and customer advocacy.

That’s where the bowtie model shines. It visualizes both sides of the customer journey. The left side covers acquisition; the right, retention and growth. This visual helps redefine what true GTM alignment looks like when recurring revenue is your business model.


From Fragmented Teams to Unified Systems

Having worked across marketing, sales, and customer success, I’ve seen firsthand how misaligned objectives and handoffs can create friction. Each team might optimize for their individual part of the journey without clarity or accountability for what comes next.

The bowtie model transforms that dynamic. It turns the revenue journey into an operational system—with clear metrics, responsibilities, and workflows—not just for generating leads and closing deals, but for onboarding, retaining, and expanding customers with intention and precision.

It’s a shift from viewing revenue as a pipeline to treating it as a continuous cycle—one that impacts planning, structure, and performance measurement.


Designing a Connected Revenue Architecture

What makes van der Kooij’s model so impactful is that it builds an operating system around the bowtie—one that ties together monetization strategy, GTM approaches, and data flow in a coherent way.

He breaks down the key metrics for each phase: volume, conversion rate, and time. These aren’t one-size-fits-all—they flex depending on your GTM strategy and pricing model. Whether you’re running a PLG motion or selling into the enterprise, the framework adapts to your specific needs and provides actionable guidance.


A Playbook for Modern Revenue Teams

If you work in any kind of subscription or recurring revenue model, Revenue Architecture is essential reading. It’s more than a business book—it’s a blueprint for building scalable systems that align teams and drive lifetime value.

What sets it apart is the systems-first mindset. In a world where acquiring customers is getting more expensive, companies that don’t prioritize retention and expansion simply won’t last. The bowtie model equips teams to solve this challenge at the root.

Whether you’re a scrappy startup or an established SaaS leader, the principles in this book offer a framework for structuring your teams, metrics, and customer experience around long-term success.

Because here’s the truth: real growth doesn’t end at “closed-won.” Companies that understand this—and build accordingly—will be the ones that endure.