Subscription business model
Subscriptions
A business model where customers pay on a recurring schedule for ongoing products, services or access.
Say a supplement brand spends $40 to win a subscriber who pays $30 a month with a 50% gross margin. The first order earns $15 of gross profit, so the brand is $25 behind. By the third order it has made $45 of gross profit and is ahead.
It turns unpredictable one-time sales into revenue you can plan around.
Browse our complete glossary of e-commerce and subscription terms.
