A subscription model is a revenue model that charges a recurring fee for access to a product or service. Its recurring nature is attractive to businesses as a stream of income and as a means for improving customer lifetime value. The following are illustrative examples of a subscription model.
TelecomA telecom provider charges customers a monthly fee for broadband access with unmetered bandwidth. SoftwareA cloud services company charges a monthly fee per user for access to a sales automation platform.Gift BoxA cosmetics brand offers a monthly gift box service that sends customers a variety of product samples each month for a fee.Theme ParkA theme park offers an members pass sold as a recurring monthly service fee.
Members ClubA ecommerce retailer offers benefits such as free shipping in exchange for an annually recurring fee.Service PlanA maintenance company offers home owners a service plan on equipment such as air conditioning units. Customers pay a monthly fee and get free repairs when something breaks.MediaA streaming media service offers unlimited access to videos and music for a monthly fee per person or household.
Non ProfitA non profit asks for donations as a subscription that may include benefits such as a monthly magazine that outlines the group's work.Information AccessA national newspaper charges a subscription fee to access web based content.
Business Models
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