Advantages for Vendors
Building a subscription website or adding a subscription component to an existing website is a rapidly growing trend, offering vendors a host of benefits, including the opportunity to increase revenues exponentially. Subscription models allow you to establish long-term relationships with customers as opposed to settling for a one-time purchase. They offer predictable monthly or periodic revenue with the ability to add new goods or services to an existing plan. Moreover, online subscription models build brand loyalty, the type of commitment made possible by solid customer relationships.
Advantages for Customers
Online subscriptions offer customers the opportunity to receive ongoing content or promotions from your company and to subscribe to a service rather than buying outright. Typically subscribers have a clear understanding of or interest in the goods, services, or support services you are offering. Accordingly, they often prefer thelow up-front and more manageable costs inherent in monthly or periodic payments (as well as the ability to renew, upgrade, or cancel their subscription).
Any Business Can Profit from a Subscription Model
The recurring revenue stream provided by online subscription models benefits small and large businesses alike. In fact, startups in the software-as-a-service (Saas) segment of the industry are seeing profits increase at an up-to 6x growth rate. As a result, more and more businesses are adding a subscription component to their website or even changing from a single point-of-sale model to a subscription model, with the goal of capitalizing on a sustained and long-term predictable income.
Types of Website Subscription Models
Nowadays, everyone seems to be subscribing to something. The notion of receiving services or content one enjoys (or depends upon) on regular basis is highly appealing. In general, there are two ‘archetypes’ of subscription models – those which are used primarily for monetization and those which drive traffic. If you are thinking of introducing a subscription component ton your website, consider the following types of online subscription models:
- Freemium Model: Websites offer free content but add a “subscribers-only” link, providing paying subscribers exclusive access to premium features (such as archives or special promotions).
- Newsletter Model: Access to a digital or print newsletter is provided to subscribers only.
- Membership Model: A user-driven, content-based model wherein paid members enjoy access to a library of information on topics related to your business. Membershipsubscriptions create an online community of users who share a common interest or passion.
- Magazine Model: Subscribers gain access to issues of a print or digital magazine related to your website (the magazine should be issued with regular frequency and be easily downloadable as a PDF, viewed in HTML, or stored in a closed document format).
- Blog Model: Readers who subscribe become part of a community and are welcome to post comments. While originating as ‘personal soapboxes,’ blogs are increasingly being used by businesses as part of their online strategies. Blogs can introduce a new product, announce upcoming events, get news out publicly and quickly, or share company news/information. Many bloggers also use their blog to boost visibility by announcing speaking engagements, books deals, work in other publications, and more.
To capitalize fully on a subscription model for your website, consider investing in subscription management software, designed to help you manage all aspects of the platform – including billing, managing recurring payments, providing multiple credit card payment options, and canceling/upgrading/changing plans.
Businesses are increasingly adding a subscription component to their existing monetization strategies.
Eldad Ben Tora has Over 12 years of experience in the strategy and development of products for social and commercial platforms with strong emphasis on product positioning, strategy and design. Our great eCommerce Service can provide all the subscription services tools you need, allowing you to capitalize on the technology and enjoy the expected increment in revenue.