Building Subscribers to your Products

This is a guest post.


Quite a few marketers assume that a subscription model only applies to offline things (e.g. magazines, newspapers, DVDs, or other various paid products). As a result, they miss out on the benefits provided.

Many offline businesses have adopted the subscription model, such as health clubs and spas, DVD rentals, cell phone services, and so on. It has been an effective strategy for many parties involved. If you’re assuming that the subscription models can only apply to certain business types, you should change your view…

The subscription model can provide benefits to many different industries- it creates a win-win scenario for owners and customers. As the owner, you receive guaranteed sales and, in some cases, advanced payment for the services customers will enjoy in future. The subscription model also builds customers loyalty and reduces the marketing / customer acquisition costs for small business owners.

Customers benefit due to overall lower fees. In addition, it’s less hassle for them to remember to make a payment individually. By giving the business their credit card number, they’re automatically charged certain amounts each month (and don’t have to worry about scheduling the payments in advance).

• Product of a Month Club –The owner of a small business can create a product of the month, where customers get a special type of product each month at a special discount. You can require customers to pay up front to guarantee sales.
• Annual Coupon Book –A coupon book will cost a small amount to the consumer and give them discounts on certain types of products throughout the year. The customer benefits by getting large discounts and saving money in the long run.
• Pre-paid Services –If you’re billing by the hour or charging for some kind of customer service, you can have the customer pay a certain amount upfront that gives him additional hours at no cost. In the long run, they save more.
• Product for a Life –The customer will pay upfront for a service they’re free to use for the rest of their life. Many clubs have lifetime membership options such as this one. If you’re running a business where incremental costs of serving more customers are low, you can offer the lifetime membership option.