3 ms·
Sounds like OP doesn't understand the business-and-personal value of a subscription Let's take a "traditional" sales model: you spend T amount of time (and mon
by warrenm 5y ago
Sounds like OP doesn't understand the business-and-personal value of a subscription
Let's take a "traditional" sales model: you spend T amount of time (and money) to get a customer. They pay you M money. Once. You want to sell them something else? Gotta go through the whole song-and-dance circus all over again.
Now look at a subscription: you spend T amount of time (and money) to get a customer. They pay you S subscription fee (way lower than the M in the previous example (per unit time)), but includes the fact that they're already paying a [small] amount to have your thing. To keep* them, all you have to do is NOT SCREW UP. And if they do want to cancel, you can offer them a time-sensitive/-dependent/-limited "discount"; if they stay, you - basically - didn't lose anything (except a couple bucks for a few months); if they leave, then they're gone, and get no more updates, support, etc for whatever they were paying for.
It's why magazines have a newsstand price of, say, $7.99 an issue, but you can subscribe for a 12-issue yearly subscription for $12. The major cost of acquiring a customer is up-front. Once you have them, it's "cheap" to keep them.