Why You Should Try a Subscription Model for Your Business (and Some Tips on How to Do It)
You too can take advantage of a subscription model to give yourself more recurring revenue and a bigger customer base.
Every entrepreneur wants consistent monthly income to fuel their cash flow and business goals. However, between economic cycles and changing customer interests, that regular revenue may be hard to achieve.
Decide on a subscription model type.
There are three main sub-models that can frame your monthly business within the subscription model. The curation model involves creating a personalized box for customers based on interests they share when they sign up.
The replenishment model is the one I use most often. It offers a regular stream of products the customer uses.
The access model provides a feeling of exclusivity for customers who get products and experiences not available to anyone without a subscription. Again, let’s reference Amazon. Its Prime program gives members special discounts, offers, and products not accessible to non-Prime members.
Consider a service-oriented subscription model.
You may be wondering how to find your niche. Consider a service-oriented skill set you have that could fit this approach. For example, if you specialize in graphic design, web development, or writing, consider this model for your monthly business.
In contrast to a monthly retainer model, a service-based subscription model provides upfront revenue while giving clients the opportunity to select a pricing tier with accompanying services that fit their needs.
You are probably saying, Scott how could this work for my business? How about a plan like the heating and AC businesses have in place for the equipment you sold the account. Offer a fixed fee for tune ups and repairs with a discount for subscribers on parts. Certain accounts could use also be great candidates for the replenishment model for cleaning supplies.