Subscription Business Model
A revenue model where customers pay recurring fees for ongoing access to a product or service.
Also known as: Subscription model, Recurring revenue model
Category: Concepts
Tags: businesses, revenues, models
Explanation
The Subscription Business Model generates recurring revenue through regular payments (monthly, yearly) rather than one-time purchases. This creates predictable income, encourages ongoing value delivery, and builds long-term customer relationships. For creators, subscriptions (newsletters, memberships, communities) provide stability and incentivize continuous improvement. The challenge is maintaining value that justifies ongoing payment and managing churn (customers who cancel).
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