Many business could significantly increase revenues by adding recurring payments under a subscription business model. What does this mean? Consider this: your consulting business, your clothing store, your church, mosque or synagogues, or your website business could actually be turned into a subscription revenue business quite easily.
First, think about how you can give your customers shorter contracts like month to month payments. This will immediatcustomers the opportunity to reach new customers who might not underwise have been able to afford your product or service.
Secondly, by instituting monthly or even quarterly or yearly payments, you are able to get revenues continuously – long after initial customer acquisition costs have been absorbed. This gives you stable cash flow which is king. In validating businesses, subscription revenues can give your business substantial value.
Thirdly, giving customers the power to manage how they prefer to pay gives them a psychological feel of being in control. As long as you maintain good customer service and have a solid product or service, you can be reasonably assured of their loyalty.
To make the subscription business model work, you have to invest in a solid payment or billing system. Why? Because you don’t want to try to manage your billing using an Excel spreadsheet. Remember different customer will have different billing periods so you want a system which automates this process as much as possible. We can recommend the Azimio Billing System for Subscription Management. Check it out at www.azimiosystems.com .
See how you too can benefit from a subscription model – http://youtu.be/sc7HKYJaGDM