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SUPER GUIDE: Subscription Business Model

The Super Guide about Subscription Business Model is a complete guide on a business model that predicts revenue, brings active communities online, promotes long-term customer relationships, and makes people love your brand.

Table of Content

Here’s the content you’ll find in this guide

  1. Introduction
  2. What Is Subscription Business Model
  3. History Of The Subscription Business Model
    1. Booksellers And Book Clubs
    2. Theater Subscriptions
    3. Charities And The Subscription Model
    4. Live Opera Subscriptions In The 19th Century
  4. The Present Of Subscription Business Model
    1. Car Ownership Vs Subscription
    2. Video Rentals, Sales Vs Video Subscription
    3. Subscription Meal Kit Services
  5. The Future Of Subscription Business Model
  6. The Rise Of The Subscription Economy
  7. The 2 Different Types Of Subscription Business Models
    1. 1. Access: Premium Content For Dedicated Subscribers
    2. Subscription Video On Demand (Svod)
    3. Written Content
    4. Software As A Service (Saas)
    5. 2. Repeat Services: A New (Or Restocked) Product Every Month
  8. How A Subscription Model Works
  9. How Do Subscription Models Make Money?
  10. Why Is The Subscription Business Model Sustainable?
  11. What Is The Difference Between Subscription Business Models And Paid Loyalty Programs?
  12. Five Stages Of The Subscription-Based Model
    1. Stage 1: Ad Hoc
    2. Stage 2: Opportunistic
    3. Stage 3: Repeatable
    4. Stage 4: Managed
    5. Stage 5: Optimized
  13. Pros Of Subscription Business Models
    1. Better Demand Forecasting
    2. More Insight Into Customer Behavior
    3. Robust Cross-Selling/Upselling Opportunities
    4. Lower Customer Retention Costs
  14. Cons Of Subscription Business Models
    1. High Customer Acquisition Costs
    2. High Competition
    3. Operational Complexity
    4. Subscription Fatigue
  15. Popular Subscription Business Models
    1. Saas
    2. Subscription Boxes
    3. Publications & Newsletters
    4. Media Subscriptions: Video & Music Streaming Services
    5. Traditional Industries Moving Into Subscriptions
  16. How To Move To A Subscription Business Model?
    1. Novel Stage
    2. Experimental Stage
    3. Scale Stage
    4. Leverage Stage
  17. Why Does Moving To A Subscription Business Model Initially Decrease Revenue And Increase Expenses?
  18. Why Use A Subscription Business Model?
  19. How Do You Transition To A Subscription Business Model?
  20. The 5 Steps Of The Subscription Revenue Cycle
    1. Acquire Customers
    2. Deliver Consistent, High-Quality Service
    3. Look For Opportunities To Upsell Or Cross-Sell
    4. Work To Retain Users And Reduce Churn
    5. Rinse And Repeat
  21. Essentials To Run A Successful Subscription Business
    1. Product-Market Fit
    2. Subscription Pricing Strategy
      1. Value-Based Pricing
      2. Cost-Plus Pricing
      3. Competitive Pricing
      4. Demand-Based Pricing
    3. Exceptional Customer Service
    4. Subscription Revenue Tech Stack
  22. What To Consider When Planning A Subscription-Based Offering?
    1. Decide On Your Point Of Difference
    2. Choose The Frequency
    3. Have A Recurring Payment System
    4. Have A Plan For How To Fulfill Subscriptions Effectively
  23. How To Get Your Subscription Pricing Right
    1. Offer More Than One Subscription Plan
    2. Avoid Hidden Charges
    3. Offer A Free Trial Or A Freemium Product Option
    4. Measure Everything
  24. Six Metrics All Subscription Businesses Should Track
    1. Monthly Recurring Revenue (Mrr)
    2. Annual Recurring Revenue (Arr)
    3. Average Revenue Per User (Arpu)
    4. Customer Lifetime Value (Clv)
    5. Customer Acquisition Cost (Cac)
    6. Churn Rate
  25. 9 Keys To Build Successful Subscription Business Models
    1. Pricing In Support Of Your Business Goals
    2. Acquiring Customers Across Any Channel
    3. Billing With Accurate, Intuitive Invoices
    4. Collecting Fast Cash And Easy Settlements
    5. Nurturing And Developing Deeper Customer Relationships
    6. Accounting For Revenue And Closing Books Faster
    7. Measuring To Get Visibility Into The Right Consumer Metrics
    8. Iterating And Rapidly Deploying New Pricing
    9. Scaling With Mission-Critical Infrastructure
  26. The 4 Innovative Subscription Business Models
    1. Personal Styling
    2. Shaving Gear
    3. Kids’ Toys
    4. Travel Clubs
  27. Other Examples Of Subscription Business Models
    1. Cars
    2. Airlines
    3. In-Home Fitness
    4. Gaming
    5. Health & Wellness
    6. Education & Professional Development
    7. Home Maintenance
    8. Consumables
    9. Entertainment
    10. Fashion/Clothing
  28. Conclusion


Read an excerpt from this Subscription Business Model Super Guide:

“A subscription business model is a model that focuses on getting customers to sign up for regular payment options for access to the product or service the business provides. Users are charged either weekly, monthly or yearly for the services provided. A clear example is the Netflix business model. Netflix charges its customers monthly or yearly for access to its catalog of movies and games.

The subscription business model guarantees a business of recurring revenue while granting customers the convenience of automatic regular payments and the use of the services and products at a lower cost. Another example is Adobe products, their upfront payments will usually set you back a few hundreds of dollars, but with a subscription service in use, users get to use their software at a low monthly price while Adobe is guaranteed a regular revenue stream.”

This is must-have knowledge for entrepreneurs and business model analysts, and consultants if you want to dominate business models, this super guide was made especially for you.

subscription business model

subscription business model

Subscription Business Model

Subscription Business Model

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