Subscription Model

 

What is Subscription Model: The subscription business model is a business model where a customer must pay a subscription price to have access to a product or service. The model was pioneered by magazines and daily consumables , but is now used by many businesses. 
What is subscription based pricing model: A subscription-based pricing model is a payment structure that allows a customer or organization to purchase or subscribe for a specific period of time for a fixed price. Subscribers typically commit to the services on a monthly or annual basis. 
How does a subscription business model function: Subscription business models are based on the idea of selling a product or service to receive monthly or yearly recurring subscription revenue. They focus on customer retention over customer acquisition. The easiest subscription business model to understand is that of a magazine company.

 

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