A Model Subscription Model
Out of all the business models that a company can use to make money, I have a love-hate relationship with only one, subscriptions.
As a business I love the idea of a recurring revenue stream from a dedicated customer base. Not only does it make predicting the financial books easier, but it clearly identifies who you should be focusing your efforts on day to day.
As a customer however, I hate it. Time after time I’ll make one-off transactions over a reoccurring charge on my credit card, even if it means spending more. Something about the commitment and forcing myself to justify a long term perceived value makes me hesitant.
But when you play off of my irrational subscription fears you’ve got a business model powerhouse.
