Can you imagine waking up on the 1st of every month and £10k dropping into your business' bank account?
During today's episodes Robin Waite, Founder of Fearless Business talks through all of the pros and cons around building a subscription model into your business.
To determine if a subscription-based pricing model is suitable for your business, listen to the full podcast episode or reach out to the podcast host for more information
In this episode of The Fearless Business Podcast, business coach and host Robin Waite answers one of the most common questions he gets asked in Fearless Business, is a subscription model suitable for my business?
Throughout the episode, Robin delves into choosing the suitable pricing model for your business and how to maintain clientele even after you have provided your services.
Of course, any Fearless Podcast fan knows by now that the worst thing an entrepreneur can do when choosing a pricing model is deciding on one which involves charging hourly. Across the Fearless Business Website, you can find multiple reasons why charging by the hour is simply unethical.
With that in mind, what is the best pricing models and tools to utilise, especially where service-based businesses are concerned?
Robin believes that the best subscription-based pricing model primarily involves a core product where clients pay upfront and then. A subscription model which they can opt into if they wish to have any extras.
The best tools to involve (in our humble opinion) when it comes to running subscription-based pricing models are as follows:
These tools help limit the amount of admin involved when it comes to maintaining your pricing model.
To reiterate, Robin believes that the best way to ensure that a subscription-based model is successful is to run it alongside a core product. Examples of this can be found with Web Design Services.
For Example: you could go to a web design company and ask them to rebrand your website to increase traffic and help put your business on the map. As a client, you pay a fee upfront, and they provide the service for you there and then. Once completed, they may offer a subscription-based model for you to opt into. This could involve added extras such as SEO and 24/7 troubleshooting support for a fixed fee per month.
By doing this, the web design company not only gets to generate some profit off of you from you investing in their initial product, but they also get to keep you as a lifetime customer whilst earning some secondary income.
Customer lifetime value is arguably where entrepreneurs make the most money, yet it’s constantly overlooked!
In a nutshell, customer lifetime value is the total worth of a customer’s business over the whole period of their relationship. Subscription-based pricing models serve as an excellent gateway for introducing customer lifetime value into your business as the customer makes a financial commitment to your services over an extended period of time.
Understandably when making decisions about the suitable pricing models for their business, entrepreneurs need to understand the pros and cons they will incur fully. For subscription-based business models, the pros and cons are as follows:
To find out more about whether a subscription-based pricing model is suitable for your business, check out the full episode above or reach out using the links below!
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