Using Subscriptions for Unexpected Products

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Information about Using Subscriptions for Unexpected Products
Business & Mgmt

Published on February 24, 2014

Author: edukaans



Hi everyone, Ruben Daniel here and welcome to another episode of the Edukaans Video Blog. Last week we talked about how some companies are using subscriptions to sell their video content. This week, let’s take a look at how subscriptions are being used to sell everything from software to clothes.

The first area where subscriptions are being used is software. With the rise of online software, we have also seen more and more companies sell their software products with a monthly fee. Two popular examples of this are Evernote and Hootsuite. They both offer free products but also have paid upgrades that provide more functionality. Their paid upgrades are only around $6/month but with millions of paid users, this number quickly adds up.

Next we can look at companies who are selling beauty and health products through subscriptions. We have companies like the Dollar Shave Club, who send you high quality razor blades for a few dollars a month. There’s also Birchbox, who mails you beauty products based on your interested. Their subscriptions range from $10-$20 a month.

You can sign up to receive new products every month without having to worry about going to the store to buy them. We can also see some clothes companies like Trunk club, which sends you a box of clothes, tailored to you on a regular basis. You don’t pay a subscription fee but rather you pay for individual items but the concept of receiving something on a regular schedule is the same.

Subscriptions are becoming increasingly popular with e-commerce companies and with a good reason. Any given customer can pay for a few months worth of products even if they don’t use your service every month. The benefits to the bottom line of your business can be great, if you do it right.

Next week, we will start looking at what kind of content companies can benefit from subscriptions and what you need to get the most of this type of model.

Thanks for watching and look forward to talking to you again soon. Take care.

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