Why Subscription Form of Monetization is our Future and How Deep is it Now?

In recent years, the subscription model has become a popular monetization strategy for businesses of all sizes. From software companies to media outlets, more and more businesses are turning to subscription-based models to generate revenue. Personally, I believe that this monetization model is our future and many businesses that currently work according to the classical scheme - the production of a product and its sale, will sooner or later switch to a subscription scheme. Yes, you got it right - I believe that very soon we will be paying a monthly subscription for Coca-Cola. It's like that.

Why Subscription Model Is Our Future?

The subscription model offers numerous benefits for both businesses and customers. Here are a few reasons why it's the future of monetization:

Stronger Customer Relationships

By subscribing to a service or product, customers are making a commitment to the business. This creates a stronger relationship between the customer and the business, leading to increased loyalty and reduced churn.

If you have ever supported the authors on Patreon, then most likely you understand what I mean. When I arrange monthly support for the author, when a couple of bucks automatically go into the pocket of a blogger, artist or designer from my card every month, I automatically become interested in what he is doing, what he is currently working on and what his plans are. I think it's a matter of psychology.

We don't have much motivation to go to the free gym, but once we buy a membership to a full-fledged gym, we will go there three times a week, if not more often. At least that's how it worked for me. I am not strong in psychology, but I think that psychologically, having spent money on supporting a person or paying a subscription for some services, we thereby become attached to this product or person. In other words, we associate our work, for which we received these few bucks, with the work of another person or company.

Predictable Revenue

One of the biggest advantages of a subscription model is predictable revenue. Instead of relying on one-time purchases, businesses can rely on a steady stream of revenue from subscribers. This allows companies to plan and budget more effectively.

Freshly - Food Subscribtion Example

Freshly - Food Subscribtion Example

Put yourself in the place of a manufacturer of goods or someone who provides services. Let's say you're delivering pure mineral water for $30 a month in your little minivan. You have a base of clients who use your services because they are used to you, because you have won their trust. The number of clients may not be constant, but this is all stipulated by the terms of your contract or other agreement. By doing so, you have a fairly clear estimate of how much your business will receive funds this month, and how much it will receive next month if you retain customers.

With such a business model, it is very easy to predict the future of your business and, most importantly, plan for its growth. You can safely plan your expenses for the next month and be sure that you will have the funds to pay your rent and pay your gas bills.

Increased Customer Lifetime Value

Subscription models offer the opportunity for businesses to increase customer lifetime value. By providing ongoing value to customers, businesses can retain them for longer periods of time and generate more revenue over time.

Beachly - Clothes Subscribtion Example

Beachly - Clothes Subscribtion Example

How often does it happen that you forget about a subscription that you signed up two years ago? I had it. Once I signed up for a minimalist online store. The essence of the business was that every month you receive a certain set of clothes in several color shades. This is done in order not to waste your time on shopping. It seemed to me very convenient, and I subscribed to the address of my parents, with whom I lived then, probably in 2019.

After some time, I moved after graduating from university and, of course, forgot about the subscription. I did not notice how every month a few dozen bucks flew off my card. Meanwhile, the clothes didn't stop coming to me in the mail. It wasn't until a year later, when my parent's closets were already bursting with this junk, that I canceled my subscription. This is often used by companies that provide such subscription services. They are well aware that many people completely forget about this and choose this particular part of monetizing their business.

Improved Product Development

With a subscription model, businesses can gather valuable feedback from subscribers and use it to improve their products or services. This can lead to better products and more satisfied customers.

Patreon - Subscribtion Example

Patreon - Subscribtion Example

Firstly, I attribute this to creators. I already talked about a subscription to Patreon. In many ways, the creativity and activity of the creator depends precisely on the desires and preferences of the public, those who are subscribed to the person. It is for them that the authors post votes on which song to cover, which character to add to the comic, what topic to shoot the next video on. For the author, this is quite logical, because he has an audience that subscribes primarily to a person, to a person, and the content and type of activity all follow.

A more complex and complex example can be given. I am subscribed to one independent political media, the editorial office of which exists and develops solely on donations from viewers. Viewers cannot influence the content directly. Agree, it is difficult to influence the format of news blogging, but the authors give users the choice of which area to give preference to in case of increased workload of the editorial team. In other words, if there are hot topics about politics and finance, which topic should be preferred, and so on.


Now, let's take a closer look at how deep subscription-based monetization has penetrated various industries.

ahrefs - Software Subscribtion Example

ahrefs - Software Subscribtion Example

In the software industry, subscription-based models have been widely adopted. Many software companies, including Microsoft and Adobe, now offer their products on a subscription basis. This has allowed them to shift away from one-time purchases and build more predictable revenue streams.

The media industry has also embraced subscription-based monetization. Netflix, for example, has built a massive subscriber base by offering a wide range of movies and TV shows for a monthly fee. Similarly, many newspapers and magazines have shifted to digital subscriptions in order to stay profitable in the face of declining print revenue.

Subscription-based monetization is also gaining traction in the e-commerce industry. Companies like Amazon and Walmart are offering subscription services that provide customers with free shipping, discounts, and other perks in exchange for a recurring fee. This can help to build customer loyalty and increase sales.

My Forecast

I sincerely believe that this is the future. Let's take a look at my example. I will give examples of subscriptions that I have, and you will understand everything yourself. I'm signed up for a weekly healthy food delivery - I pay a monthly subscription and I get containerized ready meals every week in a giant box. Thus, I have food on a subscription form. I also receive clothes by subscription. Above, I already gave an example with clothes of a color palette from black to white. And that's not counting the classics that have long been part of our lives, like Netflix or Spotify.

The purpose of my article was to show you and tell you why anything can be turned into a business just by adding a form of monetization in the form of a subscription. Want to fix bikes? Great, just fix them not piece by piece, but provide your customers with your monthly services. So, the likelihood that they will return to you is higher. I met such a brilliant entrepreneur in Turkey when I was traveling.

Do you love your native language? Great, it can be taught in such a way that clients pay not for an hour of classes, but for a month or a week. This will allow you to think less about how much you will earn next month, and less about the training program or individual approach to students.

I hope I convinced you of my vision of a beautiful future.


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