In this blog, we are taking a look at the subscription revenue model. In the past couple of years, this has been a more popular way of making money, and with good reason! For both the customer and the supplier, it offers a lot of great benefits compared to regular revenue models.
Slowly but surely the market is turning into a so-called subscription economy. In this type of economy, both parties come to an understanding about the prices of a product or service.
Is the subscription revenue model something you would like to explore with your business? Read all about the pros and cons of it in this blog!
Traditional subscriptions vs. Modern subscriptions
Traditional subscriptions easily make your mind go to newspapers and phone subscriptions. However, more businesses such as HelloFresh or DollarShaveClub are starting to dominate the market. Customers are more likely to commit to suppliers that they trust.
This doesn’t only apply to tangible products, however. Products like Video on Demand are returning more often with subscription options. Services such as Netflix, YogaTV and e-learning website are becoming more popular by the days.
We at AudiencePlayer do notice that the need and demand for one’s own video platform is rising. With your own platform you can decide with revenue model fits your company! >>
Benefits subscription as a revenue model for your business
- Monthly a steady source of income
- Easy upsells (a more expensive subscription at a low rate)
- Customer loyalty: customers won’t go to a competitor as quickly
- High customer value: when you bring in a customer, it remains a continuous stream of income
Benefits subscription as a revenue model for the customer
Not only you, but also the customer benefits from the subscription model.
- You know where you stand financially: a fixed price per month
- Access to the latest products (such as new video content)
- Overview of expenses: automatic debit
- Positive feeling, binding yourself to a supplier that you trust
Perhaps you think that a subscription model does not suit your business? At AudiencePlayer we offer you alternatives. How about adding ads to your videos, or a pay-per-video model?
Our newest customers
Want to start your own video platform? At AudiencePlayer we make that task extremely easy for you. Just choose your desired revenue model, create some powerful landing pages and start selling immediately! >>