Different subscription models

When designing new types of subscription services, it is important to decide which one of the following subscription models you want to use:

User based: Subscriptions are priced based on the number of users who will have access to the service. This is a model that businesses in the software industry frequently use.

Pay-per-item: This is the model that is most common when it comes to transaction-based business. You pay for a given item based on actual delivery. Delivery and billing is an automatic process. Magazines and publishers often use this model.

Consumer based: You pay for what you use. Electricity providers utilize this model.

Unlimited: Use as much or often as you want for a given price. A model often used by digital services where the cost is not linear to the customer’s use. Spotify and Netflix are the most widely used examples.

Package / modules: The customer is given the choice of different service levels. Often linked with a maximum limit of consumption.This model is also commonly used by software vendors.

Combinations: Frequently used combinations of the different models mentioned above. Mobile telephony often use a fixed amount as a basis of the subscription, adding actual consumption as an extra. This is a hybrid model, where the fixed part is invoiced in advance while consumption is added afterwards.

Our own software

We also offer our own software as a subscription service. We use a hybrid model with the consumer model as a basis. This is untypical for our industry, but we think it is a good model for the customer, as it provides a cost that matches your success. For us at Infosoft, the customers success will also make us successful. A typical win-win situation.

Since we charge for subscription, and have helped many successful subscriptions, we also have the assumptions to assist your business.

Please contact us if you want a non-binding conversation with us.

 

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