This is my Fourth post on the series of making money with your site or blog. In today’s Post I shall be discussing about subscription, its meaning, types and how can we use it in our web or blog as a method of earning money. Now let’s have a look at the subscription:-
A payment for consecutive issues of a newspaper or magazine for a given period of time.
Agreement expressed by (or as if expressed by) signing your name
A pledged contribution
The act of signing your name; writing your signature (as on a document); "the deed was attested by the subscription of his signature"
The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service and such product or service is offered for a specified period. The model was pioneered by magazines and newspapers, but is now used by many businesses and websites. Rather than selling products individually, a subscription sells periodic (monthly or yearly or seasonal) use or access to a product or service, or, in the case of such non-profit organizations as opera companies or symphony orchestras, it sells tickets to the entire run of five to fifteen scheduled performances for an entire season.
Thus, a one-time sale of a product can become a recurring sale and can build brand loyalty. It is used for anything where a user is tracked in both a subscribed, and an unsubscribed status. Membership fees to some types of organizations, such as trade unions, are also known as subscriptions.
There are different categories of subscriptions:
A subscription for a fixed set of goods or services, such as one copy of each issue of a newspaper or magazine for a definite period of time.
A subscription for unlimited use of a service or collection of services. Usage may be personal and non-transferable, for a family, or under certain circumstances, for a group utilizing a service at one time.
A subscription for basic access or minimal service plus some additional charge depending on usage. A basic telephone service pays a pre-determined fee for monthly use but may have extra charges for additional services such as long-distance calls, directory services and pay-per-call services.
How to Use the Subscription Business Model
First of all determine whether your business will be best served by a subscription model.
Secondly define the specific terms of use for your particular product or service and the limits of their usage.
Thirdly motivate your customers that how much they can save by committing to a long-term business relationship, as opposed to a one-time purchase.
Fourthly offer a "lifetime" membership, which allows the customer to enjoy your products or service without limits for a certain price.
Fifth make the renewal process effortless. This may involve automatic renewals, where the customer will be charged once the original term of usage expires unless she specifically designates otherwise.
Sixth carefully wording of all contracts between the customer and the subscription service to make it legal. Make sure that your customer understands everything before he commits.
In my next post I shall be discussing some other methods of earning money from your blog or website.