SUBSCRIPTION & MEMBERSHIP BUSINESS MODELS ARE RECURRING REVENUE MAGIC
Subscription and membership models can be the ultimate profit-generating
solution for companies that produce almost any kind of information
deliverable. Any concepts that are best conveyed over a span of time
via print publishing, e-publishing, audio, video, webcast, etc, are
excellent kernels to grow into a new revenue stream. Education. Investment
advice. Newsletters. Podcasts. How-to guides. Customer support.
Vodcasts. Health information. Recipes. Stock, futures, options, mutual
funds, commodity, etc, trading recommendations. Specialized blog.
Comic books. Magazines. Technical niches. Etc. Virtually anything that
people might pay to read, hear, watch, learn, etc. can be ideally-suited
to be packaged and sold for an almost unlimited stream of recurring
big benefit is the obvious one. If you currently have a revenue model
that resets to zero (sales) at the start of each year, you face the
daunting task of replacing last year's numbers with this years PLUS
growth... starting from scratch! You have to replace all those customers
won last year with new ones to be found this year and the targets
are always higher though the selling resources tend to remain close
to the same.
A subscription model sells existing customers again and again. The
seller must jump through similarly-challenging hoops to win the very
first sale but sale number 2+ (the renewals) is often much simpler
yet just as fruitful. Consider this in 2 examples:
Think about a landlord:renter relationship as an
illustrative proxy of a subscription relationship. The landlord
may have to spend money on ads to attract a renter then put some
labor into showing them the product up front (not too different
than the kinds of tasks conducted in a non-subscription business
model to sell a brand new customer). However, once that renter "subscribes" the
landlord will have to do next-to-nothing to get paid just as much
in month 2, month 3, month 4 and so on. Cost of renewals are generally
far below cost of acquisition making follow up subscriber transactions
tremendously lucrative compared to having to replace each customer
transaction with a completely new customer transaction.
In annual timetables it's even more exciting.
Your auto insurance can be another familiar & illustrative
proxy of a subscription relationship. Once every 6-12 months, all
they have to do is send you a piece of paper (the bill) and you
probably pay it time after time- perhaps for many years until
you decide to shop anew for auto insurance. You had some cost to
them when they first acquired you as a customer (some portion of
their advertising, some costs of setting up a new account in their
systems, some processing to produce your policy, etc.). However,
on subscription renewals you probably actually paid more each
year and all they had to do was send you a renewal notice. The
second transaction had less cost (they didn't have to acquire you
as a brand new customer again) yet yielded a bigger, probably-more-profitable sale.
This can repeat for several years growing revenue-per-subscriber
without having to actually absorb cost of acquisition into any
transaction after the first one.
Developing or Enhancing a Subscription Business Model
Our team has decades of experience working in some of the most lucrative
subscription models on earth. We've battled fierce competition while
mastering nitty-gritty nuances of what works & what doesn't.
We've pioneered breakthroughs to rapidly grow
membership and subscriber models while dazzling customers & forging
long-term loyalty. Our latest "from scratch" subscription model installation
has already become the most profitable division of our client's company
(they didn't even have a subscription model before this one). We
are masters at helping companies turn information products into extremely
lucrative online and/or print subscription businesses.
If you already have
a subscription model we can make it stronger. Let us take a
look and we can show you ways to make it yield record results.
Our quick diagnostic processes can reveal opportunities for improvement.
And we're always ready to roll up our sleeves and turn our recommendations
into reality. Every model we've ever examined has always had ample
room for tangible gains. Our caliber of actionable recommendations
can significantly add to your bottom line. We'd love to show you
If you aren't capitalizing on subscription or membership revenue
streams now, we can design a thoroughly optimized model from scratch
catering to the unique needs of your business. This can be a turnkey
service or we can teach inside resources how to do it all right.
Or we could help you source a relevant acquisition candidate with an established subscription model on which you could build. Our expertise has been honed by engagements in every phase of subscription
models. For example, we can:
write the sharpest business
plan to maximize the agility, understanding, communications
and execution of your team so that everything gets done best-in-class,
on time & on budget. If you are wanting to attract investors for
startup capital, a great business plan is an absolute must.
help you take advantage of the massive & rapidly growing mobile app market (hundreds of millions of buyers) so you can sell & deliver subscriptions to your product or service via Apple iPhones, iPads, iPods, Google Android devices, HP osWeb, Microsoft Windows Phone and others. We offer up to turnkey services: 1) fleshing out your app concept, 2) recommending & managing the programmers and 3) doing all of the pre-launch, launch and post-launch marketing to fuel success.
source the various technologies- many off the shelf- to make it as easy as possible to manage your subscriber database and capitalize on many ancillary benefits therein.
apply marketing science via statistical sampling to cost-efficiently break into new markets and make the most of current prospect pools. Crucial among these is identifying low-cost sources of relevant leads and best practices to woo them into your offerings.
use objective information to help you make optimal decisions about how you utilize your marketing budget.
structure the smartest, most cost-effective approaches for each campaign and orchestrate the new acquisition, cross sell & up-sell, renewal and loyalty programs to maximize your success.
In short, we can do it all… best-in-class, best-of-breed subscription model
solutions. Let us build a massively successful, recurring revenue stream for
your company! If you see even the slightest opportunity for something you offer
to be repackaged as a subscription product contact us for a free