Switch to a Subscription Business Model and Attract More Investors.

Switch to a Subscription Business Model and Attract More Investors.

Investors are finicky when it comes to investing in a business. They want solid proof that the business can deliver on its promises. Switching over to a subscription business model may work wonders for you, helping stabilize your revenue stream, besides alleviating investors’ concerns. A subscription business model is one where your customers pay a periodic fee on a continuous basis to receive your products or services without having to reorder every time. They let you know what they want and you keep providing it to them for as long as they do not cancel.

A subscription model removes uncertainty in business and investors look for businesses that have long-term customers and high retention rates. Your long list of happy subscribers can open the doors of your business for investors.

Product Quality Matters

The key to attracting and retaining customers lies with the quality of your products and services. Make a simple promise of providing high-quality products and deliver it at cost-effective rates at periodic intervals, and you will soon realize that the plan works wonders for your business.

Remember, everyone loves convenience and if you can make lives of prospects and customers a little easier with excellent product quality, they will become your customers for life. In addition, if the business management were to use something like plm software it would allow for further product quality checks as well as reducing costs, developing products, and many other things.

Related: More Payment Options Mean More Sales for eCommerce Stores

How To Get It Right

If you think it’s all about subscription, then you are seriously wrong. Your work doesn’t end at getting people to subscribe for your services; rather, it involves commitment to nurturing the relationship. It is one thing to get them to subscribe, but it is equally important to develop lasting relationship with subscribers so that they are willing to upgrade their subscription levels.

A major difference between a successful subscription business and one headed to oblivion is relationship-centric content marketing, with a focus on customers and rewarding engagement. Successful businesses focus on potential upsell strategies and incentivizing upgrades for continued success. Basically, you need to sell good products and you need to sell more of them.

Related: B2B Companies Should Accept Credit Cards to Increase Revenue.

Here are a few tips to Switch to a Subscription Business Model:

1. Say no to chasing investments: If you focus on chasing investments, you may not be able to build a solid foundation. How much growth you can handle comfortably? The answer to this puzzle can help you choose either explosive growth and maximum investment or minimal investment and slow growth.

2. Gather real consumer data: Gather real data about your target audience. You may want to use third-party research to collect data or consider focus groups. Create a list of questions relevant to your brand and try to get their opinion.

3. Who is your competition?: Identify competitors that are giving you a hard fight in the market. Try to get an insight into what they do well. It’s a good idea to emulate them while improving upon their weak points and do things better than them, so you can get an upper hand.

4. What are you great at?: Successful subscription business service providers excel in one or two things and focus on them. It may help to identify your strong points as a business and channel your maximum focus on them.

5. Reward loyalty: Encourage loyal subscribers to stick with you by rewarding their loyalty. It may help to extend their subscription period for a discount. You may want to reward loyalty by offering multiple tiers and getting people excited enough to spread the word about your services. If your members pay for a year, give them 2 months free.

6. Make payments easy for customers: Make sure you offer a variety of payment methods for your customers to pay you. This is vital for a subscription business model. Your customers must be able to pay you easily and they must be able to change (and cancel) their subscription payments easily. Try to offer all types of electronic payments like ACH, eCheck, Credit and Debit Cards, as well as Android Pay and Apple Pay. Make it easy for them to pay you and they will keep coming back for more.

Related: ACH, Paper Checks, eChecks, Electronic Payments! Confused Yet?

Switching over to a subscription business model will allow you to better forecast inventory and cash flow. with a better handle on inventory and cash flow, you will have a much easier time in attracting investors to invest in your business and grow even more. If you’re looking to invest into a business, then take a look at Stocktrades who help you get on the right track by providing support as well as access to trade reports and the best stocks to invest in.

Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!

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