5 Reasons why you should be using a subscription based business model

There’s been a trend recently for so many services that traditionally would collect an up-front payment to push users to take on a subscription model. Here’s 5 good reasons why so many business are going this way, and why it works.

Reduce Up-front costs

Not everyone is fortunate to have pockets lined with gold, so anything you can do to reduce the up front barriers to entry is always a great idea. A prime example is Adobe who’s creative suite historically was something of an investment for any creative professional, without any guarantees that you’d get your money worth! Changing to a subscription model enables new professionals to try out Adobe’s suite without having to remortgage their home. It also stops customers moving to Adobe’s competitors in an attempt to save some cash.

Provide Regular Updates

Let’s face it, if you’re not earning money from the work you’re doing, you’re far less likely to do it. Nobody works for free, and whilst releasing new products and feature upgrades can lead to more sales, bug fixes and minor tweaks aren’t going to give potential new clients a reason to buy. Having a subscription product gives you the motivation to keep everything working, and your will customers the expectation that you’ll look after the product. Customers have a high quality product and you have the income in order to support it.

Regular Income

Many apps and products come with a one off pay-day. That’s great if you’re producing something new every month, but if your service is at all seasonal, or you’re not a product making machine pushing out something new every month you need the budgeting skills of a bank manager. It’s far easier to budget if you’ve got some regular money coming in and it helps with the simple things too. If you need to take a break you can without worrying about not having enough money to put your favourite artisan latte in your hands.

Lower Price

Going with a subscription model allows you to reduce the actual cost of your product. The stability of regular income and the ability to spend more of your time focusing on making the product great, rather than wasting time and money on marketing and trying to bring in new customers. You can work smarter and charge less over the short term and make it back in the long term.

Try Something New

When you’re dependant on sales of your product to make your living, you are reasonable to be afraid to take risks on something new when what you’ve got is working so well – but if you don’t innovate you’ll be left behind, so with a regular income coming in you’ll be free to explore new ideas without worrying about your rent getting paid this month.


I’m not advocating that subscriptions work for everything, but there’s a good reason that the industry is moving that way. It’s great for consumers, great for developers, and keeps the whole industry moving forward with regular investment funding innovation. We’ve worked with a couple of subscription services who’ve really taken the business model and made it their own, and we offer all our clients the flexibility to subscribe to our services to aid with ongoing maintenance and budgeting.

Related Posts

Copyright © Glue Digital Studio Ltd