What is a subscription business model?

A subscription business model involves customers paying a recurring fee for ongoing access to a product or service.

What are the benefits of a subscription model?

The subscription business model promotes customer loyalty, ensures steady predictable revenue, and supports scalability.

What are the challenges of a subscription business model?

Operating a successful subscription business involves creating an accurate pricing strategy, scaling fulfillment, automating repetitive processes, and consistently delighting customers.

What are the different types of subscription models?

The main models are: subscription boxes, subscribe & save (replenishment), access, memberships and systems. But there are more.

What are the main metrics to measure?

When running a subscription model business, the main metrics of concern include MRR (monthly recurring revenue), CAC:LTV (customer acquisition cost to lifetime value ratio), and churn.