I learned how this works from watching Duo. As an example, it has Trustwave as a reseller and throughout its revenue growth, I believe despite having a large sales staff it also grew through channel partners. All the revenue streams start adding up for annual recurring revenue especially when you start getting a lot of signups. I monitor the activity, for example, of noclickjack Google Chrome browser extension and am happy to see this number of users is steadily rising. I attribute this only to keystroke encryption however, and not having it be part of Out of Band Authentication/ProtectID.
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My comments are only my opinion and are not to be used for investment advice. Please conduct your own due diligence before choosing to buy or sell any investment.