Complexities of Subscription Business Models

Complexities of Subscription Business Models


There’s a lot of talk out there right now about subscriptions. And subscriptions from the sense of monthly or annual, right? You’re billing your customers on a monthly basis or an annual basis. What you may not be thinking about (and I
want to challenge you today) is are you thinking about not only subscriptions, but other options
for billing your customers? Whether it’s on-demand [billing]. Whether
it’s a specific additional one-time transaction with the subscription that the customer’s
buying. Because what that does to your business, it makes it much more complex for you to find the right partner or find the right solution to
solve your problems. If you think about Uber, it’s all on-demand
billing. But what that on-demand billing does with
Uber, is it’s really a subscription in the sense that you have a relationship with that
customer. And where Uber will go, it may turn into a
subscription model as well, and you may have a little bit of everything. That’s a very complex scenario and if you’re
in that situation you really need to evaluate closely what you want your business to be
selling and how you want to sell it and find the right solution for that problem.

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