Subscription -based business models are built on a recurring customer base, in which customers, rather than owners, usually have access to the product or service. The customer can have the benefit of the service, without owning the underlying asset, which is maintained by the company that manages the subscription business Cool monthly box subscriptions.
With the business model subscription , customers or members pay a certain amount each week, month or year and, in return, receive a product or service in return. Let’s take the case where you sell a service from $ 100 to 100 people. In this case, you have earned $ 10,000. Yet, in the next month or year, you will not be starting from scratch but will have a predictable turnover (at least in theory, we will see why in practice this is not yet the case). This is why many companies are adopting the business model subscription .
In other issues, like Amazone Prime members, these aren’t just additional revenue streams, but also programs that help those companies block repeat customers.
Finally, the subscription business model has also grown over the past decade as an alternative to the advertising-based employment model dominating the web.
So the business model subscription is not new. However, the novelty is where it is applied. For example, for some decades it was difficult to think of music as a service (see Spotify ) or the support that was previously consumed in fixed time slots is now served at any time with streaming (see Netflix ).