AUTOMATIC CUSTOMER, THE

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Did you notice something different about your credit card statement lately? Rather than the typical miscellaneous charges, you're likely to see a string of small monthly fees from suppliers like Amazon.com, Netflix, and Spotify. These companies are the pioneers of the new subscription economy where consumers buy access instead of assets. From lattes to cosmetics, you can now get virtually everything you need through a subscription, with more convenience than ever before. Subscription businesses have guaranteed repeat customers who pay up front and ultimately pay more over time. That recurring revenue is huge, especially as it is increasingly more difficult for traditional businesses to be successful. Warrillow explains the importance and persistence of the new subscription economy and offers nine subscription business models that can transform any traditional business into a recurring revenue engine, including: · The Content Pay Wall Model: Companies access to highly specialized, high-quality information, that keeps changing over time. The Wall Street Journal and the Financial Times were pioneers in recognizing that the public would pay for good content; smaller specialized services like My-Turn also use it. · The All-You-Can-Eat Library Model: Companies unlimited access to a warehouse of value. Like any library, you'll never consume all of the information available, but the scope of accessible content will always provide for something you like. Think Netflix and Spotify. · The Private Club Model: Companies provide something of limited supply for affluent consumers. The value in this model is in who you meet rather than what you get. If customers want access to something truly rare, like a high-profile networking group or an exclusive members-only golf club or ski club), the only way they can access it is by entering into a long-term relationship. This isn't just for technology businesses. Warrillow provides the comprehensive toolkit necessary for any business---small, medium, or large--- to thrive by creating a recurring revenue stream.

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