Whether you are starting a new business or looking to upgrade your current payment model, you have probably considered subscription billing. After all, it’s one of the hottest and most lucrative business models that offer unique business benefits!
This article will discuss what the subscription business model is and whether it is feasible for you.
What Is the Subscription Business Model
Also known as “recurring billing,” the subscription billing model allows business owners to collect payments from clients at set intervals.
Once the customer subscribes to your products or services, by signing up for the auto-pay and providing relevant information, the payment is made automatically as your customers continue to enjoy your products or services.
It is effective, convenient, and takes away the hassle of keeping track of recurring payments. But is it the right choice for you? Read on to find out.
Is Subscription Billing the Right Model for You?
Consider the following factors to ensure you choose the right payment model that matches your customers’ expectations, meets your business requirements, and helps your business grow.
1. Consider Your Products/Services
The first thing you need to do is make sure your products/services work with the recurring billing. The good news is that with a little creativity, there’s a place for subscription in almost all businesses.
The most obvious examples of subscription models include Netflix and Amazon Prime. However, with the right open-source software that offers subscription management and allows for customization, you can use this model for just about any business.
For instance, Dollar Shave Club effectively employs the model to sell shaving products, SurfAir offers subscription flying services for frequent flyers, Bespoke Post caters to fashion lovers via a subscription model, and so on.
2. Don’t Forget about Dunning
The term “dunning” entails making continual demands on someone, especially to make payments. When choosing a recurring payment business model, this is a necessary evil that you must come to terms with if you want a continuous cash flow.
Credit cards get expired, canceled, and lost more often than you might think, which means that the subscription business model comes with its own set of challenges. Keeping up with payment method changes can also be a hassle.
However, the good news is that you can easily detect and overcome such problems by opting for reliable open source subscription model software that offers subscription management and allows you to customize the solution in any way you want. It will take care of dunning and help you streamline your payment process.
Optimize Customer Experience with Kill Bill
Now that you know what a subscription model is and whether it’s the right choice for you, let’s take a look at the best open-source subscription model software available in town. Kill Bill’s Subscription Billing interface offers the capabilities and flexibility you need to manage subscriptions of all kinds.
You can provide your customers with options to create, upgrade, pause, downgrade, cancel, and renew subscriptions, along with many other features. You can also benefit from automatically transitioning customers from one phase of the plan to another.
Furthermore, Kill Bill makes your life easier by allowing automated communications for events like late payments, missed payments, account pause, etc. Click here to learn more about the best open-source subscription model software in the market.