- A product, service, business unit, or investment that consistently generates a significant profit or steady stream of income with relatively little ongoing cost or effort needed to maintain it.
Explanation
Origin
- Metaphorical, comparing a reliable profit source to a dairy cow that predictably produces milk (profit) without requiring much special attention.
- Popularized in business strategy by the Boston Consulting Group (BCG) matrix in the 1970s, which categorized business units based on market share and growth rate. 'Cash cows' had high market share in low-growth markets. The concept existed before the BCG matrix, though.
Synonyms & Related Expressions
Alternatives
Slang/Informal:
- Money maker
- ATM machine (Figurative, for something that consistently provides cash)
Vulgar/Emphatic:
- (No direct common vulgar equivalent specifically for this concept.)
Milder/Formal:
- Primary profit generator / Key revenue driver
- Stable income source
- Mature product/service (In business context, often implies cash cow status)
- High-margin, low-growth asset
Situational Appropriateness
- Very common and appropriate in business contexts (informal to formal).
- Can also be used informally to describe any reliable source of personal income (like a rental property).
Misunderstanding Warnings
- Ensure understanding that it's not just any income source, but one that is *reliably profitable* and requires *low maintenance/investment*. The cow metaphor implies steady, easy production.
Examples
- Their flagship software product, while old, remains the company's primary cash cow.
- That small apartment building he inherited turned out to be a real cash cow.
- The company uses the profits from its cash cow division to fund riskier new ventures.
Dialogue
A: Why does the company keep investing in that outdated technology division?
B: Because it's their cash cow. It brings in steady profits year after year with minimal new investment, funding everything else.
A: Right, guess you don't mess with a reliable income stream.
Social Media Examples
- Tweet: Understanding your product portfolio: Which are your stars, question marks, cash cows, and dogs? #BCGMatrix #BusinessStrategy
- LinkedIn Post: Don't neglect your cash cow! Consistent revenue from established products funds innovation. #Marketing #ProductManagement
- Forum comment: My blog's affiliate links for Product X have become a nice little cash cow over the years.
Response Patterns
- Acknowledgment: Ah, I see. That makes sense. / Yeah, those are valuable.
- Business analysis: So they're milking the cash cow to fund growth elsewhere? / How long can that last?
- Agreement: Every company wishes they had a cash cow like that.
Common Follow-up Questions/Actions
- Discussing the specific product/service and why it's so profitable.
- Analyzing the business strategy related to the cash cow (e.g., reinvestment, maintenance, potential decline).
- Considering the risks or longevity of the cash cow.
Conversation Starter
- No.
- Used within a discussion about business strategy, finance, or investments.
Intonation
- Often said neutrally as a business term, or sometimes with admiration for the reliable profitability.
- Stress on CASH COW.
Generation Differences
- Widely understood, especially by anyone with business knowledge, across generations.
Regional Variations
- Standard business idiom across English-speaking regions.