- published: 20 May 2014
- views: 3250
The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites.
Rather than selling products individually, a subscription sells periodic (monthly or yearly or seasonal) use or access to a product or service, or, in the case of such non-profit organizations as opera companies or symphony orchestras, it sells tickets to the entire run of five to fifteen scheduled performances for an entire season. Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty. It is used for anything where a user is tracked in both a subscribed and unsubscribed status.
Membership fees to some types of organizations, such as trade unions, are also known as subscriptions.
Industries that use this model include mail order book sales clubs and music sales clubs, cable television, satellite television providers with pay-TV channels, satellite radio, telephone companies, cell phone companies, internet providers, software providers, websites (e.g., blogging websites), business solutions providers, financial services firms, fitness clubs, lawn mowing and snowplowing services and pharmaceuticals, as well as the traditional newspapers, magazines and academic journals.
A business model is an "abstract representation of an organization, be it conceptual, textual, and/or graphical, of all core interrelated architectural, co-operational, and financial arrangements designed and developed by an organization presently and in the future, as well as all core products and/or services the organization offers, or will offer, based on these arrangements that are needed to achieve its strategic goals and objectives." This definition by Al-Debei, El-Haddadeh and Avison (2008) indicates that value proposition, value architecture (the organizational infrastructure and technological architecture that allows the movement of products, services, and information), value finance (modeling information related to total cost of ownership, pricing methods, and revenue structure), and value network articulate the primary constructs or dimensions of business models.
A business model thus describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy.
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Subscription business models can generate a continuous stream of income for a company — but aren't easy to implement. Niko Waesche explains why subscription business models are so difficult to realise, and highlights criteria for succeeding in it.
Learn why subscription business models are startup favorites. Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. 5 advantages are: - First impression counts. Avoid sticker shock - Constant cash inflow can cover your expenses better which are usually linear as well. - Easier forecasting. If exit: better valuation. - Automation: key to growth & scale - Better value for customers: Can calculate. No surprises. Less churn. More loyalty. -- Higher LTV, revenue increases with no price increase. ----- Unlimited WordPress Maintenance & Improvement & Small Development Jobs: http://goo.gl/dcL3qF Flat-rate Graphic Design Services for Marketers and Entrepreneurs http://goo.gl/VtPe06 Free video series on how to succe...
In today's episode I talk about the subscription service model and how to launch your own subscription service online.
You’ll learn how to project subscription revenue for a Software as a Service (SaaS) or other subscription-based company in this tutorial, which is based on a case study of Netflix. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:16 Part 1: Key Drivers of a Subscription Revenue Business 5:09 Part 2: Where to Find the Required Information 10:08 Part 3: How to Put It Together in Excel + Add Scenarios 15:32 Recap and Summary Part 1: Key Drivers of a Subscription Revenue Business The key revenue drivers for subscription-based businesses include: 1) Existing Subscribers and the Renewal Rate – MOST revenue depends on the existing subscriber base unless the business is growing like a beast. 2) New...
Jesse Richardson from Subscription School breaks down how to launch a subscription box business in 3 simple steps. Includes examples, free resources, and Q+A session with real business owners. Learn more: http://www.subscriptionschool.com
"Online Subscription Businesses" is a town-hall conversation with some of the most successful founders and operators of web based subscription business talking about the keys to success to building & growing online businesses that are driven by subscription sales. It was hosted by Jason Nazar (CEO, Docstoc.com), joined by Josh Meyers CEO of People Media a subsidiary of Match.com, Jeff Tinsley CEO and Founder of MyLife, Robert Angarita Co-Founder of Cramster (recently sold to Chegg) and Mark Kapczynski VP of Corp Dev at Experian.
It's no secret a majority of companies are making the shift to subscription-based business models. IDC predicts subscription revenue will account for over $90B by 2015. If your business is making the move or thinking about it, join Recurring Revenue Alliance members Aria and ServiceSource to learn: - Ways to efficiently manage your subscription business with the right recurring revenue management system - How high-growth companies have effectively transitioned to a subscription model - Best practices for high-touch or automated communication with your customers
Subscription businesses offer stable recurring revenue built along a renewing product offering, usually on a monthly basis. In this webinar, you'll hear from industry veterans about why this business model is garnishing so much attention and how you can start your own subscription business in 30 days or less. Learn more at: http://www.subscriptionschool.com/why-you-should-start-a-subscription-business
Entrepreneur Network partner, B. Maté of Be Better Paris explains why adding a subscription to your portfolio of services is a good idea. http://bebetterparis.com SUBSCRIBE to Be Better Paris: https://www.youtube.com/channel/UC2AOiqJhFdVJn-lMOWCW9gg Join Entrepreneur Network http://entrepreneurnetwork.com Watch more videos at: http://www.entrepreneur.com/video Follow Us On Twitter: https://twitter.com/entrepreneur
An overall consumer desire to simplify life has led more people to pay for the convenience subscription-based services offer. In fact, a recent May 2015 report indicated that 18 percent of consumers buy products by subscription and the number is growing. This growth has tremendous appeal as a business model, offering better predictability for revenue forecasting and a consistent revenue stream. This Blue Paper® will review the pros and cons of a subscription-based service business model and offer how-to’s to getting started. Entrepreneurs and established businesses alike can provide ongoing fee-based services or products to meet the consumer demand and generate recurring revenue.
Subscription business models can generate a continuous stream of income for a company — but aren't easy to implement. Niko Waesche explains why subscription business models are so difficult to realise, and highlights criteria for succeeding in it.
Learn why subscription business models are startup favorites. Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. 5 advantages are: - First impression counts. Avoid sticker shock - Constant cash inflow can cover your expenses better which are usually linear as well. - Easier forecasting. If exit: better valuation. - Automation: key to growth & scale - Better value for customers: Can calculate. No surprises. Less churn. More loyalty. -- Higher LTV, revenue increases with no price increase. ----- Unlimited WordPress Maintenance & Improvement & Small Development Jobs: http://goo.gl/dcL3qF Flat-rate Graphic Design Services for Marketers and Entrepreneurs http://goo.gl/VtPe06 Free video series on how to succe...
In today's episode I talk about the subscription service model and how to launch your own subscription service online.
You’ll learn how to project subscription revenue for a Software as a Service (SaaS) or other subscription-based company in this tutorial, which is based on a case study of Netflix. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:16 Part 1: Key Drivers of a Subscription Revenue Business 5:09 Part 2: Where to Find the Required Information 10:08 Part 3: How to Put It Together in Excel + Add Scenarios 15:32 Recap and Summary Part 1: Key Drivers of a Subscription Revenue Business The key revenue drivers for subscription-based businesses include: 1) Existing Subscribers and the Renewal Rate – MOST revenue depends on the existing subscriber base unless the business is growing like a beast. 2) New...
Jesse Richardson from Subscription School breaks down how to launch a subscription box business in 3 simple steps. Includes examples, free resources, and Q+A session with real business owners. Learn more: http://www.subscriptionschool.com
"Online Subscription Businesses" is a town-hall conversation with some of the most successful founders and operators of web based subscription business talking about the keys to success to building & growing online businesses that are driven by subscription sales. It was hosted by Jason Nazar (CEO, Docstoc.com), joined by Josh Meyers CEO of People Media a subsidiary of Match.com, Jeff Tinsley CEO and Founder of MyLife, Robert Angarita Co-Founder of Cramster (recently sold to Chegg) and Mark Kapczynski VP of Corp Dev at Experian.
It's no secret a majority of companies are making the shift to subscription-based business models. IDC predicts subscription revenue will account for over $90B by 2015. If your business is making the move or thinking about it, join Recurring Revenue Alliance members Aria and ServiceSource to learn: - Ways to efficiently manage your subscription business with the right recurring revenue management system - How high-growth companies have effectively transitioned to a subscription model - Best practices for high-touch or automated communication with your customers
Subscription businesses offer stable recurring revenue built along a renewing product offering, usually on a monthly basis. In this webinar, you'll hear from industry veterans about why this business model is garnishing so much attention and how you can start your own subscription business in 30 days or less. Learn more at: http://www.subscriptionschool.com/why-you-should-start-a-subscription-business
Entrepreneur Network partner, B. Maté of Be Better Paris explains why adding a subscription to your portfolio of services is a good idea. http://bebetterparis.com SUBSCRIBE to Be Better Paris: https://www.youtube.com/channel/UC2AOiqJhFdVJn-lMOWCW9gg Join Entrepreneur Network http://entrepreneurnetwork.com Watch more videos at: http://www.entrepreneur.com/video Follow Us On Twitter: https://twitter.com/entrepreneur
An overall consumer desire to simplify life has led more people to pay for the convenience subscription-based services offer. In fact, a recent May 2015 report indicated that 18 percent of consumers buy products by subscription and the number is growing. This growth has tremendous appeal as a business model, offering better predictability for revenue forecasting and a consistent revenue stream. This Blue Paper® will review the pros and cons of a subscription-based service business model and offer how-to’s to getting started. Entrepreneurs and established businesses alike can provide ongoing fee-based services or products to meet the consumer demand and generate recurring revenue.
You may be aware that Autodesk recently announced a move to a subscription business model. Synergis is here to help you understand the timing of these announcements, how these changes may affect you, and to help you make the best licensing decisions for your organization. In this webcast as we talk through the changes and answer your questions.
The Automatic Customer Speaker: BizSmart Founder Kevin Brent The lifeblood of your business is repeat customers. But this is easier said than done. This webinar looks finding and keeping 'automatic' customers. Virtually every business can create at least some recurring revenue you are willing to think differently - and this webinar reviews different subscription business models to help get you thinking about how you could apply one or more of them to your business. This 20 minute webinar could change the whole way you look at business - can you afford to miss it?!
The subscription business model delivers predictable revenue and customer loyalty across industries, from entertainment and consumer goods to business services and tech. But, how can you cut through subscription billing complexity and get your business on the fast track to revenue? In this complimentary, one-hour webinar for IT leaders, you’ll discover: - Considerations for making your build-vs-buy decision - How to find the ideal billing management solution for your enterprise (hint: agility and nimbleness are key) - The power of streamlined integrations to your CRM and financial systems - How to minimize security risks and offload PCI compliance
(Visit: http://www.uctv.tv/) Robbie Bach joined Microsoft in 1988 and over the next 22 years worked in various marketing, general management and business leadership roles. He is a true intrepreneur, shepherding the xBox through Microsoft's colossal organization and redefining the gaming industry with xBox Live's innovative subscription business model. Since leaving Microsoft in 2012, Robbie has applied his business skills to solve major civic issues, outlining a new model for private/public partnerships in his book xBox Revisited: A Game Plan for Corporate and Civic Renewal. Recorded on 02/14/2017. Series: "Technology Management Program" [7/2017] [Show ID: 32551]
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The fashion industry is in the midst of an unprecedented sea change. From algorithms that predict the next red-hot fashion trends, the emergence of subscription business models, to the real-time management of global supply chains, tech innovation is creating new opportunities for a market of more than $765 million annually. In this panel discussion, thought leaders from the retail industry discuss how big data can be leveraged to discover the next fashion trends. Panel: -Dominique Piotet, CEO Fabernovel US (moderator) -Luke Langon, Director of Growth, LeTote -Helen Zhu, CEO at Chictopia -Ruchika Kumar, CEO at SKU IQ
Let's talk about growing subscription-based businesses. Discover our 3 wonderful guests ✨ - Xavier Zeitoun, CEO & Co-founder at Zenchef. Launched in 2010, the company has since become a major player in the restaurant online marketing industry and raised over $10M. Its mission: to help restaurant owners attract more customers through online marketing and new technologies. - Philippe Van Hove, Area VP EMEA South at Zuora. Zuora develops technologies that help companies build subscription business models by establishing, cultivating and monetizing recurring customer relationships. Created in 2007, the company has raised over $240M. - Robert Whiteside, VP of Sales at GoCardless. GoCardless is one of the hottest businesses in Europe transforming financial services and a member of the ...
We chat with Josh Waldo- VP of channels for . Nintex is a channel driven global BPM software company. Josh Waldo is going to talk about the impact to the channel when you move into the cloud with a subscription based business model. http://minhthang.name.vn Do not forget to LIKE, SHARE, SUBSCRIBE and feel free to ask me questions or discuss with everyone :]
Check out the full episode here: https://omny.fm/shows/innovabuzz/episode-23-john-warrillow-of-the-value-builder-sys In this episode number 23 of the InnovaBuzz podcast, John Warrillow, the creator and president of The Value Builder System, author of Built to Sell and The Automatic Customer, talks to us about recurring revenue or subscription business models and how they can give certainty in both cash flow, inventory and staff management to any business. Listen to the podcast to get the details. Listen to the Podcast Today we are giving away a copy of John’s book, The Automatic Customer where he talks about 9 business models that are good recurring revenue models, where those business models are well-suited and and what you need to have in place for them to succeed. Leave your comments ...
Check out the full episode here: https://omny.fm/shows/innovabuzz/episode-23-john-warrillow-of-the-value-builder-sys In this episode number 23 of the InnovaBuzz podcast, John Warrillow, the creator and president of The Value Builder System, author of Built to Sell and The Automatic Customer, talks to us about recurring revenue or subscription business models and how they can give certainty in both cash flow, inventory and staff management to any business. Listen to the podcast to get the details. Listen to the Podcast Today we are giving away a copy of John’s book, The Automatic Customer where he talks about 9 business models that are good recurring revenue models, where those business models are well-suited and and what you need to have in place for them to succeed. Leave your comments ...