Models, Inc: You Can Subscribe It

 

There are a number of critical things that businesses seek, but one thing that tops them all is recurring revenue. All types of revenues are good, but the recurring one is the best. Not only does it provide a regular and predictable cash flow, it also is usually less expensive compared to new revenue.

There are many ways to generate recurring revenue. One such method is through subscription, which the dictionary defines as "An arrangement for providing, receiving or making use of something of a continuing or periodic nature on a prepayment plan."

Many non-digital businesses use the subscription model to ensure recurring revenue. So it is no wonder that many also tried to implement it in the digital world, too.

In the Subscription Business Model, the user pays a fee periodically--monthly, annual, etc.--to subscribe to a service. There are a number of variants of this model:

Content Services are like newspapers and magazines. Many websites use the subscriber model for music, video and information. Some examples are Listen.com, Netflix and Wall Street Journal.

Person-to-Person Networking Services are the conduits for the distribution of user-submitted information. A good example is Classmates Online, Inc., which is an online community of more than 35 million.

Trust Services are the independent third …

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