9 Great Paths To Recurring Revenue For Your Startup

By Aarthi Rayapura August 9, 2016

Every new business quickly realizes that recurring revenue coming in every period on a committed basis is the holy grail to survival and growth. According to many experts, getting new customers is 5-to-10 times harder than getting additional revenue from existing customers. Thus the subscription model (low fixed monthly payments) is rapidly becoming the norm for new products and services.

Subscription pricing has been around for a long time for magazines, cloud-based software and gaming, but now I am seeing it used for just about anything, including for more stylish clothes via Mr.Conection, gourmet foods via TryTheWorld and toys for your kids via Pley. If you are an entrepreneur not using this model, it may be time to consider a pivot.

In fact, in a recent book “The Automatic Customer,” by John Warrillow, who runs the successful subscription based research business SellabililityScore, I saw the nine most common variations on the subscription model today. If you are looking to start a new business in any domain, it is definitely worth your time to check your fit for one of these models:

1. Membership website model.
2. All-you-can-eat content model.
3. Private club model.
4. Front-of-the-line model.
5. Consumables model.
6. Surprise box model.
7. Simplifier model.
8. Network model.
9. Peace-of-mind model.

Read the full article at: www.alleywatch.com

And download Zuora’s whitepaper – 9 Keys to Building Success in the Subscription Economy