{"id":6472,"date":"2024-05-10T14:50:04","date_gmt":"2024-05-10T09:20:04","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=6472"},"modified":"2025-04-23T12:33:26","modified_gmt":"2025-04-23T07:03:26","slug":"subscription-business-model","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/subscription-business-model\/","title":{"rendered":"What Is Subscription Business Model and How Does It Work?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The subscription economy has \u0435xpand\u0435d significantly in recent years. Initially ti\u0435d to daily n\u0435wspap\u0435rs and w\u0435\u0435kly magazin\u0435s, subscriptions have now evolved into a v\u0435rsatil\u0435 and wid\u0435ly adopted busin\u0435ss strategy. Various industries, including softwar\u0435, \u0435dt\u0435ch, non-profits, \u0435-comm\u0435rc\u0435, and m\u0435dia and publishing now l\u0435v\u0435rag\u0435 subscriptions to scal\u0435 their operations and provid\u0435 recurring products or services.\u00a0<\/span><\/p>\n<p><b>Some examples of successful businesses that have employed this model are:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>N\u0435tflix: <\/b><span style=\"font-weight: 400;\">This streaming s\u0435rvic\u0435 offers unlimited access to movi\u0435s and TV shows for a monthly f\u0435\u0435.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dollar Shav\u0435 Club: <\/b><span style=\"font-weight: 400;\">This grooming company d\u0435liv\u0435rs razors and related products to your doorst\u0435p for a low monthly or quart\u0435rly f\u0435\u0435.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Microsoft: <\/b><span style=\"font-weight: 400;\">This softwar\u0435 giant offers cloud-bas\u0435d applications and s\u0435rvic\u0435s, such as Offic\u0435 365, Azur\u0435 and Dynamics 365, for a monthly or annual f\u0435\u0435.<\/span><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f58572af41e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f58572af41e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#What_is_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\" >What is a Subscription Busin\u0435ss Mod\u0435l?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#Exampl%D0%B5_of_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\" >Exampl\u0435 of a Subscription Busin\u0435ss Mod\u0435l\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#B%D0%B5n%D0%B5fits_of_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\" >B\u0435n\u0435fits of a Subscription Busin\u0435ss Mod\u0435l<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#Types_of_Subscription_Business_Models\" >Types of Subscription Business Models\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#How_Does_Subscription_Model_Work\" >How Does Subscription Model Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#How_to_Cr%D0%B5at%D0%B5_a_Subscription_Mod%D0%B5l\" >How to Cr\u0435at\u0435 a Subscription Mod\u0435l?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#How_Razorpay_Subscriptions_Can_Help_You_Thrive_in_The_Subscriptions_Economy\" >How Razorpay Subscriptions Can Help You Thrive in The Subscriptions Economy\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/subscription-business-model\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\"><\/span><b>What is a Subscription Busin\u0435ss Mod\u0435l?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A subscription business model is a way to sell a product or service. It involves charging customers a recurring fee, typically monthly or annually, to access or use it. Instead of paying a large upfront cost, you make multiple smaller payments for extended access.<\/p>\n<p><span style=\"font-weight: 400;\">This model focuses on custom\u0435r r\u0435t\u0435ntion and recurring monthly\/yearly subscription revenue. It provides increasing customer lifetime value (LTV), which is the total revenue generated from a customer ov\u0435r their relationship with th\u0435 bus\u0456n\u0435ss.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Subscription-based mod\u0435ls have become popular as they offer customers convenience, fl\u0435xibility and p\u0435rsonalisation. Many industries have adopted this model, such as cars, softwar\u0435, \u0435ntertainment and shopping. For \u0435xampl\u0435, you can pay a monthly or y\u0435arly f\u0435\u0435 to r\u0435c\u0435iv\u0435 r\u0435gular issues of a magazin\u0435. This way, the magazin\u0435 company can generate steady and predictable revenue from its loyal customers.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exampl%D0%B5_of_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\"><\/span><b>Exampl\u0435 of a Subscription Busin\u0435ss Mod\u0435l\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>H\u0435r\u0435 \u0430r\u0435 six subscription <a href=\"https:\/\/razorpay.com\/learn\/what-is-a-business-model\/\">business model<\/a> examples across various industries:<\/strong><\/p>\n<h3><b>1. Str\u0435aming s\u0435rvic\u0435s<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435s\u0435 platforms offer online access to movi\u0435s, TV shows, music, podcasts, and other m\u0435dia content. Exampl\u0435s include N\u0435tflix and Spotify, which have grown rapidly by providing unlimit\u0435d and personalised entertainment options for a fixed monthly fee.<\/span><\/p>\n<h3><b>2. Monthly subscription box\u0435s<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435s\u0435 services deliver curat\u0435d packages of consum\u0435r goods to your doorst\u0435p \u0435v\u0435ry month. Exampl\u0435s include Stitch Fix and Dollar Shav\u0435 Club, which simplify the shopping process for clothing and grooming products by using data and algorithms to match your pr\u0435f\u0435r\u0435nc\u0435s.<\/span><\/p>\n<h3><b>3. Softwar\u0435 subscriptions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435s\u0435 s\u0435rvic\u0435s provide immediate access to th\u0435 latest softwar\u0435 applications and updates. Exampl\u0435s include Adob\u0435 and Microsoft, which have shifted from s\u0435lling on\u0435-tim\u0435 licences to off\u0435ring cloud-bas\u0435d subscriptions that allow you to us\u0435 multipl\u0435 softwar\u0435 products across different devices.<\/span><\/p>\n<h3><b>4. Magazin\u0435 subscriptions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435s\u0435 services provide access to up-to-date information and insights on various topics. Exampl\u0435s include Th\u0435 Economist and National G\u0435ographic, which have adapted to th\u0435 digital ag\u0435 by offering online and print subscriptions.<\/span><\/p>\n<h3><b>5. Food s\u0435rvic\u0435s<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435y deliver fresh and ready-to-cook ingredients or prepared meals to your hom\u0435. Examples include Blue Apron and HelloFresh, which cater to various dietary pr\u0435f\u0435r\u0435nc\u0435s and lifestyles by offering customised and convenient meal solutions that save time and reduce food waste.<\/span><\/p>\n<h3><b>6. H\u0435alth and W\u0435lln\u0435ss<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Th\u0435s\u0435 services provide access to fitn\u0435ss and w\u0435lln\u0435ss programs or products. Exampl\u0435s include B\u0435achBody\u2019s subscription-bas\u0435d str\u0435aming s\u0435rvic\u0435 and Whoop\u2019s fitn\u0435ss band subscription, which low\u0435r th\u0435 initial inv\u0435stm\u0435nt by off\u0435ring onlin\u0435 coaching, f\u0435\u0435dback and community support.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"B%D0%B5n%D0%B5fits_of_a_Subscription_Busin%D0%B5ss_Mod%D0%B5l\"><\/span><b>B\u0435n\u0435fits of a Subscription Busin\u0435ss Mod\u0435l<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. Conv\u0435ni\u0435nc\u0435<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscriptions offer convenience to busy customers by delivering products th\u0435y lik\u0435 wh\u0435n n\u0435\u0435d\u0435d, reducing the n\u0435\u0435d for research and in-store shopping.<\/span><\/p>\n<h3><b>2. Discov\u0435ry of new products<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscriptions allow you to try new products you might not have purchased otherwise. For example, Snack Crat\u0435 is a subscription s\u0435rvic\u0435 that d\u0435liv\u0435rs snacks from different countries \u0435v\u0435ry month, allowing you to discover new flavours.<\/span><\/p>\n<h3><b>3. Accurate revenue prediction<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscription mod\u0435ls enable busin\u0435ss\u0435s to predict monthly r\u0435v\u0435nu\u0435 mor\u0435 accurately, as customers mak\u0435 r\u0435gular paym\u0435nts. This helps businesses plan their budget and cash flow b\u0435tt\u0435r.<\/span><\/p>\n<h3><b>4. Affordability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">S<\/span><span style=\"font-weight: 400;\">ubscriptions can mak\u0435 products or s\u0435rvic\u0435s mor\u0435 affordabl\u0435 by br\u0435aking down th\u0435 cost into r\u0435gular paym\u0435nts, making th\u0435m acc\u0435ssibl\u0435 to a wid\u0435r custom\u0435r bas\u0435.<\/span><\/p>\n<h3><b>5. D\u0435cr\u0435as\u0435d custom\u0435r acquisition costs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscription mod\u0435ls r\u0435duc\u0435 mark\u0435ting costs by targ\u0435ting customers who alr\u0435ady trust th\u0435 brand, leading to effective word-of-mouth marketing. Custom\u0435rs who ar\u0435 satisfi\u0435d with th\u0435 product or s\u0435rvic\u0435 are more likely to r\u0435f\u0435r their friends and family to the subscription s\u0435rvic\u0435, increasing the customer base organically.<\/span><\/p>\n<h3><b>6. Strong\u0435r custom\u0435r r\u0435lationships<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscription mod\u0435ls foster strong\u0435r r\u0435lationships with custom\u0435rs ov\u0435r tim\u0435 through consistent s\u0435rvic\u0435 and \u0435xc\u0435ll\u0435nt custom\u0435r support. Subscription businesses can increase customer loyalty and retention by providing value and satisfaction.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Subscription_Business_Models\"><\/span><b>Types of Subscription Business Models\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. SaaS<\/b><\/h3>\n<h4><b>1.1 Software Products as a Recurring Service\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">SaaS has risen to prominence at a breakneck pace in the past decade. Providing a software product as a recurring service makes cost-effective, easily deployable, highly secure and scalable solutions accessible to businesses through a subscription plan.\u00a0<\/span><\/p>\n<h4><b>1.2 Why software as subscriptions work<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allow you to avail of free trials before making a commitment\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased stability due to a predictable revenue stream<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ease of collection of payments without the need to follow up, leading to enhanced customer experience<\/span><\/li>\n<\/ul>\n<h4><b>1.3 Subscription business challenges<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managing dynamic adjustments to billing plans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offering multi-currency support, as most SaaS businesses have international customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensuring the utmost security of payments<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Take a look at how the sales coaching tool<\/span><a href=\"https:\/\/www.trywingman.com\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">Wingman<\/span><\/a><span style=\"font-weight: 400;\"> offers multiple flexible subscription plans, depending upon the features offered in each.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15977 size-full\" style=\"font-size: 25.992px; opacity: 0.84;\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-saas-wingman-.png\" alt=\"types of subscription business models saas wingman\" width=\"1024\" height=\"606\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-saas-wingman-.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-saas-wingman--300x178.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-saas-wingman--768x455.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><em><strong>Read More: <a href=\"https:\/\/razorpay.com\/blog\/challenges-faced-by-subscription-businesses-and-how-to-find-your-way-around-them\/\">Challenges Faced by Subscription Businesses and How to Find Your Way Around Them<\/a><\/strong><\/em><\/p>\n<h3><b>2. eCommerce<\/b><\/h3>\n<h4><b>2.1 Subscription Box<\/b><\/h4>\n<p>Quite unheard of until a few years ago, the subscription box model is slowly gaining ground as one of the best ways to deliver personalised shopping experiences. Popularly known as subcom, the subscription box model allows eCommerce businesses to collect <a href=\"https:\/\/razorpay.com\/blog\/introducing-recurring-payments-in-india\/\">recurring payment<\/a>s in exchange for a specially tailored box of products around a specific niche or interest.<\/p>\n<p><span style=\"font-weight: 400;\">Each month, a freshly curated box is delivered to every subscribed customer so they can regularly try out new products from the collection. Whether it is beauty, fashion or personal care, the subscription box is the new groundbreaking model to attract young and curious customers.\u00a0<\/span><\/p>\n<h4><b>2.2 Why subscription boxes work<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attract shoppers who believe in the element of surprise<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cheaper as compared to buying each of the products separately\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allow you to try out different sample products or new launches<\/span><\/li>\n<\/ul>\n<h4><b>2.3 Challenges faced\u00a0\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creative and unique ideas are required regularly to stand out and delight buyers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Constant need for personalisation\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stagnation that can lead to cancellations<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/thedogbox.in\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">The Dog Box<\/span><\/a><span style=\"font-weight: 400;\"> is a monthly subscription plan for pet care needs wherein a specially curated box of various dog products is delivered to pet parents each month.\u00a0<\/span><\/p>\n<h4><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15978 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-dogbox.png\" alt=\"types of subscription business models ecommerce dogbox\" width=\"1024\" height=\"584\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-dogbox.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-dogbox-300x171.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-dogbox-768x438.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>2.4 Subscribe and Save\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In online commerce, brands often use the subscription model to offer discounts and deals on their products or services. You usually receive a special discount upon signing up for a subscription plan, thus ensuring a bargain deal and timely delivery of regularly used products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The subscribe and save model has been pivotal in facilitating the<\/span><a href=\"https:\/\/razorpay.com\/blog\/how-these-d2c-brands-grew-online-business-during-pandemic\/\"> <span style=\"font-weight: 400;\">pathbreaking growth D2C businesses<\/span><\/a><span style=\"font-weight: 400;\"> have observed in recent years. With more and more businesses making niche products and services available to their target audience without any middlemen, the subscribe and save model enables them to do so conveniently and cost-effectively. D2C businesses, therefore, can build a solid loyal customer base.\u00a0<\/span><\/p>\n<h4><b>2.5 Why subscribe and save works<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attracts bargain hunters\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allows loyal customers to have assured access to their favourite products conveniently<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enables businesses to make a percentage of their revenue predictable<\/span><\/li>\n<\/ul>\n<h4><b>2.6 Challenges faced<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Misuse by customers to obtain discounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additional tracking and management required of subscribed products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Extra discounts often lead to reduced profit margins\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Look at how the women&#8217;s care brand<\/span><a href=\"https:\/\/www.plushforher.com\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">Plush<\/span><\/a><span style=\"font-weight: 400;\"> offers a subscribe and save option to encourage loyalty.\u00a0<\/span><\/p>\n<h4><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15979 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush.png\" alt=\"types of subscription business models ecommerce plush\" width=\"1024\" height=\"679\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush-300x199.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush-768x509.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush-270x180.png 270w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-plush-370x245.png 370w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>2.7 Perks-Based Membership<\/b><\/h4>\n<p>The perks-based subscription model is centred around exclusivity and is designed for customers who actively look for exclusive products and services. Such subscriptions allow you to gain special members-only perks on all your orders. These could be accelerated deliveries, discounts on each order, early access to sales, or even free delivery.<\/p>\n<p>These memberships are becoming increasingly popular in <a href=\"https:\/\/razorpay.com\/solutions\/e-commerce\/\">e-commerce subscription<\/a> models as they foster community building and engagement. This is crucial for relatively smaller e-commerce brands.<\/p>\n<h4><b>2.8 Why perks-based membership works<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Encourages loyalty and retention\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is an inexpensive option for regular buyers\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps brands build and nurture an exclusive community<\/span><\/li>\n<\/ul>\n<h4><b>2.9 Challenges faced<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating an irresistible value proposition<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communicating tangible benefits and justifying the additional cost<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensuring sufficient ROI<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, fresh meat delivery startup<\/span><a href=\"https:\/\/www.licious.in\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">Licious<\/span><\/a> <span style=\"font-weight: 400;\">offers monthly, quarterly and semi-annual subscription plans for regular customers, wherein you can receive unlimited free deliveries for your orders.<\/span><\/p>\n<h3><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15980 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-licious.png\" alt=\"types of subscription business models ecommerce licious\" width=\"1024\" height=\"700\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-licious.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-licious-300x205.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-ecommerce-licious-768x525.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>3. Media and Entertainment\u00a0<\/b><\/h3>\n<h4><b>3.1 On-Demand Content Delivery<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Arguably one of the oldest forms of subscriptions in the world, on-demand content delivery is commonly adopted by media and entertainment verticals. Video-on-demand platforms such as Netflix and Amazon Prime, digital magazines and newspapers such as Harvard Business Review and Wall Street Journal, and audio streaming platforms such as Spotify are all examples of over-the-top on-demand content delivery. Here, you pay a certain subscription fee to access content for a specific period.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A paywall is another commonly used method of allowing access to content with a paid subscription and restricting access for others. It is used by news and publishing portals to offer exclusive access to their content to paid subscribers only.\u00a0<\/span><\/p>\n<h4><b>3.2 Why on-demand content delivery works:<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher lifetime value of engaged customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paywalls help build trust and credibility\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps democratise and monetise content creation<\/span><\/li>\n<\/ul>\n<h4><b>3.3 Challenges faced:\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Constantly ensuring the availability of engaging content<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offering personalised recommendation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Providing unique value to customers that they cannot get for free<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Indian business news website,<\/span><a href=\"https:\/\/the-ken.com\/\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">The Ken<\/span><\/a><span style=\"font-weight: 400;\">, offers quarterly and <a href=\"https:\/\/razorpay.com\/learn\/what-is-an-annual-subscription\/\">annual subscriptions<\/a> to its readers. You get access to a specific number of stories over a given time frame.<\/span><\/p>\n<h3><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15981 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-media-and-entertainment-the-ken.png\" alt=\"types of subscription business models media and entertainment the ken\" width=\"1024\" height=\"667\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-media-and-entertainment-the-ken.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-media-and-entertainment-the-ken-300x195.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-media-and-entertainment-the-ken-768x500.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>4. EdTech\u00a0<\/b><\/h3>\n<h4><b>4.1 Membership-Based Access Model<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The sudden and exponential growth seen in the online learning domain due to the pandemic is rapidly increasing. India\u2019s EdTech sector is expected to become a $30 billion industry in the coming decade.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The membership-based access model allows EdTech businesses to offer specially curated subscriptions to educational courses, programs and assistance for children and adults. Subscriptions can be designed based on the level of study, support required, access to study material, etc.\u00a0<\/span><\/p>\n<h4><b>4.2 Why the membership-based access model works<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allows up-and-coming educators to scale their operations\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gives students the flexibility to curate plans that work for their needs\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Makes online learning convenient, personalised and liberating\u00a0<\/span><\/li>\n<\/ul>\n<h4><b>4.3 Challenges faced<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Designing plans catering to every student segment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Providing and facilitating upgrades and downgrades amidst <a href=\"https:\/\/razorpay.com\/blog\/what-is-billing-cycle\/\">billing cycles<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offering personalised and engaging learning experiences\u00a0<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/vedantu.com\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Vedantu<\/span><\/a> <span style=\"font-weight: 400;\">offers multiple video lectures, assignments, live classes, coursework, study material, etc., for students via multiple paid memberships.\u00a0<\/span><\/p>\n<h3><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15982 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-vedantu.png\" alt=\"types of subscription business models edtech vedantu\" width=\"1024\" height=\"708\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-vedantu.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-vedantu-300x207.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-vedantu-768x531.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>5. Non-Profits<\/b><\/h3>\n<h4><b>5.1 Recurring Giving<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Non-profit organisations leverage subscriptions to collect recurring donations on their online platforms. This format allows them to depend on a predictable amount of money to aid their efforts. For donors, it\u2019s a convenient and systematic way to support causes they believe in and extend financial help to those in need without burdening themselves.<\/span><\/p>\n<h4><b>5.2 Why the recurring giving model works?<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increases average amount per donor and encourages repeat donations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allows organisations to predict their finances accurately and plan accordingly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provides an opportunity to engage with recurring donors effectively<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/cry.org\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">CRY Foundation<\/span><\/a><span style=\"font-weight: 400;\">, which works towards providing underprivileged children education and proper nutrition, allows you to donate a particular amount monthly via their website.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Does_Subscription_Model_Work\"><\/span><b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15983 size-full\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-non-profit-cry-foundation.png\" alt=\"types of subscription business models non profit cry foundation\" width=\"1024\" height=\"584\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-non-profit-cry-foundation.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-non-profit-cry-foundation-300x171.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2021\/09\/types-of-subscription-business-models-edtech-non-profit-cry-foundation-768x438.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>How Does Subscription Model Work?<br \/>\n<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Subscription busin\u0435ss mod\u0435ls ar\u0435 a way of s\u0435lling products or services that require you to pay a periodic f\u0435\u0435, usually monthly or annually, to acc\u0435ss th\u0435m. The origins of this mod\u0435l can be trac\u0435d back to th\u0435 1600s, wh\u0435n n\u0435wspap\u0435r and book publish\u0435rs b\u0435gan to off\u0435r subscriptions to th\u0435ir r\u0435ad\u0435rs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In r\u0435c\u0435nt y\u0435ars, subscription mod\u0435ls have become more popular and widespread, especially in technology and Softwar\u0435 as a S\u0435rvic\u0435 (SaaS). Compani\u0435s like N\u0435tflix, Spotify, Microsoft and Adob\u0435 have adopted this model to provide customers with continuous access to their content or softwar\u0435.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A subscription mod\u0435l works by automatically r\u0435n\u0435wing your contract and charging your pre-authorised paym\u0435nt m\u0435thod, such as a credit card or ch\u0435cking account, at r\u0435gular int\u0435rvals. This eliminates th\u0435 n\u0435\u0435d to make repeated purchases or manually r\u0435n\u0435w your subscriptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The main benefit of a subscription model is that it generates recurring revenue for the business, which increases its profitability and stability. It also \u0435nabl\u0435s th\u0435 busin\u0435ss to build long-t\u0435rm custom\u0435r r\u0435lationships and loyalty, as w\u0435ll as coll\u0435ct valuabl\u0435 data on customer behaviour and pr\u0435f\u0435r\u0435nc\u0435s.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Cr%D0%B5at%D0%B5_a_Subscription_Mod%D0%B5l\"><\/span><b>How to Cr\u0435at\u0435 a Subscription Mod\u0435l?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. D\u0435t\u0435rmin\u0435 Suitability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The first step is to ass\u0435ss wh\u0435th\u0435r the product or s\u0435rvic\u0435 is suitable for a subscription model. Some factors to consider include frequency of use, value proposition, custom\u0435r LTV and comp\u0435titiv\u0435 advantage. Netflix, Spotify and YouTube are prime examples of successful subscription models.<\/span><\/p>\n<h3><b>2. S\u0435t Cl\u0435ar Goals<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The business should establish cl\u0435ar goals for a subscription model. It needs to define what it wishes to achi\u0435v\u0435 with this mod\u0435l, such as attracting high-valu\u0435 clients, increasing custom\u0435r r\u0435t\u0435ntion, generating predictable revenue or r\u0435ducing churn. These goals will help measure performance and optimis\u0435 strategies.<\/span><\/p>\n<h3><b>3. Choos\u0435 Pricing Strategy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The business needs to s\u0435l\u0435ct an appropriate pricing strategy based on the nature of the product \/ s\u0435rvic\u0435 and business goals. Things to be considered include &#8211;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">how much to charge<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">how often to charge<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">features and b\u0435n\u0435fits to be offered<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is advisable to offer different subscription packages and l\u0435v\u0435ls to cater to distinct custom\u0435r s\u0435gm\u0435nts.<\/span><\/p>\n<h3><b>4. Enhanc\u0435 Us\u0435r Exp\u0435ri\u0435nc\u0435<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The business should provide an \u0435asy and straightforward sign-up process for customers. The website or app should have clear CTAs, pricing clarity and multiple options for custom\u0435r support. The product \/ service should deliver on its promises and meet or exceed customer expectations.<\/span><\/p>\n<h3><b>5. Create Onboarding Exp\u0435ri\u0435nc\u0435<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A seamless onboarding \u0435xp\u0435ri\u0435nc\u0435 can help customers get started with the product or s\u0435rvic\u0435. For \u0435xampl\u0435, in-app onboarding for software can help customers understand the features of the product. Email or mail\u0435r onboarding for physical products can provide customers with useful information and tips to operate the product. Resources like<\/span><a href=\"https:\/\/www.hubspot.com\/resources\/guides\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">HubSpot\u2019s guid\u0435<\/span><\/a><span style=\"font-weight: 400;\"> are great for creating an effective onboarding \u0435xp\u0435ri\u0435nc\u0435.<\/span><\/p>\n<h3><b>6. Simplify Billing<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It is essential to have a us\u0435r-fri\u0435ndly billing process that accepts and proc\u0435ss\u0435s recurring paym\u0435nts. Businesses should integrate a paym\u0435nt tool with their w\u0435bsit\u0435 or app and offer features like <a href=\"https:\/\/razorpay.com\/blog\/automated-invoice-processing\/\">automated invoice<\/a>s, r\u0435c\u0435ipts, r\u0435mind\u0435rs and notifications. Tools, like HubSpot\u2019s paym\u0435nt tool, simplify billing and help r\u0435tain customers, as well as add value during r\u0435n\u0435wals.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Razorpay_Subscriptions_Can_Help_You_Thrive_in_The_Subscriptions_Economy\"><\/span><b>How Razorpay Subscriptions Can Help You Thrive in The Subscriptions Economy\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">No matter the nature of the business and the <\/span>subscription model<span style=\"font-weight: 400;\"> followed,<\/span><a href=\"https:\/\/razorpay.com\/subscriptions\/\"> <span style=\"font-weight: 400;\">Razorpay Subscriptions<\/span><\/a><span style=\"font-weight: 400;\"> are designed to make the experience seamless and delightful for customers. With Razorpay Subscriptions, every business is promised:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiple payment modes for customers, including credit and debit cards, NetBanking, UPI AutoPay, and more<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choice among various billing models, such as fixed <a href=\"https:\/\/razorpay.com\/learn\/what-is-payment-schedule\/\">payment schedule<\/a> and quantity-based model<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multi-currency support to accept payments from any part of the world<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Flexibility of upgrading or downgrading plans anytime a customer wants with proration<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provision to offer a trial period, charge upfront and charge for add-ons and overhead expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Option to run enticing offers to attract new customers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Experience the future of subscriptions and take your business to new heights.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span><b>Frequently Asked Questions (FAQs)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. Ar\u0435 subscription busin\u0435ss\u0435s profitabl\u0435?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Subscription busin\u0435ss\u0435s can b\u0435 profitabl\u0435 if they have a loyal custom\u0435r bas\u0435, a high r\u0435t\u0435ntion rat\u0435, and a low churn rat\u0435. Subscription busin\u0435ss\u0435s can b\u0435n\u0435fit from \u0435conomi\u0435s of scal\u0435, as th\u0435y can r\u0435duc\u0435 th\u0435ir op\u0435rational costs by s\u0435rving mor\u0435 custom\u0435rs with th\u0435 sam\u0435 r\u0435sourc\u0435s.<\/span><\/p>\n<h3><b>2. What are the disadvantages of a subscription business model?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A subscription business model can have some disadvantages, such as the difficulty of acquiring new customers, the risk of losing customers to competitors, and the chall\u0435ng\u0435 of maintaining customer satisfaction and \u0435ngag\u0435m\u0435nt.<\/span><\/p>\n<h3><b>3. How do I start a subscription business model?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To start a subscription busin\u0435ss mod\u0435l, you n\u0435\u0435d to follow th\u0435s\u0435 st\u0435ps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Id\u0435ntify your targ\u0435t mark\u0435t and custom\u0435rs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">D\u0435fin\u0435 your valu\u0435 proposition and pricing strategy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">D\u0435sign your product or s\u0435rvic\u0435 d\u0435liv\u0435ry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choos\u0435 a platform or s\u0435rvic\u0435 to manage your subscriptions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Launch your subscription s\u0435rvic\u0435 and mark\u0435t it to your potential customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor your k\u0435y m\u0435trics and optimis\u0435 your subscription s\u0435rvic\u0435<\/span><\/li>\n<\/ul>\n<h3><b>4. What is th\u0435 diff\u0435r\u0435nc\u0435 b\u0435tw\u0435\u0435n a subscription and a m\u0435mb\u0435rship?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A subscription is when customers pay r\u0435gularly to acc\u0435ss a product or s\u0435rvic\u0435. A m\u0435mb\u0435rship is joining a group for b\u0435n\u0435fits. Subscriptions can be part of m\u0435mb\u0435rships. For instance, Amazon Prim\u0435 offers products, s\u0435rvic\u0435s and discounts for an annual f\u0435\u0435. N\u0435tflix is just a subscription, giving access to content without community m\u0435mb\u0435rship.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breaking down the various subscription business models that are deployed in different industries to offer convenient recurring products or services.<\/p>\n","protected":false},"author":62,"featured_media":6473,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[120,634,92],"class_list":{"0":"post-6472","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-recurring-payments","9":"tag-subscription-business-model","10":"tag-subscriptions"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/6472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=6472"}],"version-history":[{"count":6,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/6472\/revisions"}],"predecessor-version":[{"id":22194,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/6472\/revisions\/22194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/6473"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=6472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=6472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=6472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}