Subscription Business Model-Secrets Revealed


Every organization has but one dream – how to automatically keep making money. Most of the founders start their journey with this objective, yet many keep struggling and fail to eventually realize that subscription business model may just not be possible. Speaking from experience, let me tell you today that It is Possible.

Subscription is in the heart of this business automation, although there is more to it, which I will discuss eventually. Subscription is not a new business model but existed since age-old times, and many traditional industries have been thriving on this model. Reader’s Digest is a pioneer in this model and has been successful since they released their first issue on Feb 5th, 1922. Your electric distribution company has also been in the subscription business since inception. In today’s times, you will find subscription model in every business – from holidays to monthly razors, diapers, children games. Recurly is a subscription to manage your subscription. Possibilities are endless – your imagination is the limit.

Warning! Not all businesses can be built on this Subscription Model. Moving business to the cloud is just half way into subscription automation and will not ascertain success.

What type of businesses can expect success from the Subscription Business Model?

Essentially, any business which sells a product or a service that is repeatedly required by the customer at a predefined frequency. You can get some clear idea from the study published below or download the research published by Innopay.


**From a recent study conducted by Innopay with European customers

But why does your business need to evolve into the Subscription business model?


  1. Lower cost of customer acquisition
  2. Easier customer acquisition.
  3. A Higher number of customer acquisition.
  4. Potential Geo-expansion at negligible operational costs (Depends on the business).
  5. Assured cash flow predictions.
  6. Better Inventory Management.
  7. A Stronger relationship with the customer.
  8. More cross-sell and up-sell opportunities.

I will be writing more on this subject by breaking down the subscription business model into smaller and easy components that can be easily grasped and implemented. Since the essence of the subscription business is on automation and robotics to achieve efficiency in every aspect, further articles will be based on that perspective spreading across the following:

  1. Marketing Robots
  2. Distribution Robots
  3. Sales Robots
  4. Service Robots

Off course, it largely depends on how many people like this introduction.

Palash Bagchi
Avid Blogger, researcher on new innovative topics, Educator, Social Media Enthusiast, Story Teller. Enjoys writing on subjects of Technology especially Cloud, Education, Finance and Operations.

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