Joe Keny
In the subscription model, product or service is offered over a specified period. Launched by the industry magazines and journals, subscription business models have been successfully used by book clubs and music, cell phone, premium cable or satellite television services and of Other companies.
Determine if your company will be better served by a subscription model. This model should be reserved for products and services that can be enjoyed throughout the year and are not subject to seasonal peaks and valleys.
clarify the conditions of your product or service in particular and the limits of their use. For example, some business models subscription base their rates on the frequency or duration of a customer uses the service.
offer substantial savings for the customer when you offer a subscription of services or products. Motivate the client by showing him how much money it will save by committing to long term business relationship, as opposed to a purchase.
Consider offering a “life” for membership, this which allows the customer to take advantage of your products or services without limits for a certain price. Although this May make it more difficult to maintain the business model over the long term, it creates enough capital at the outset that you can use for investments and research and development.
Making the renewal process effortless. This May involve the automatic renewal, where the customer will be charged after the initial period of use expires, unless it means precisely the opposite. Be aware that many customers find this practice in May unethical, so make it as clear as you can during the initial contract.
word carefully all contracts between the client and service subscription so that the terms are legally binding. Make sure the customer understands everything before it commits.
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