The subscription business model has become a trend. Many industries have been disrupting the status quo by shifting to a subscription service, such as films, music, software and even Fast Moving Consumer Goods, with shaving products being delivered to your doorstep every month.
The advantage of the subscription model is a hassle-free experience for the client. This provides users with access to your product, even if they don’t have the upfront capital, or the time to dedicate themselves to maintaining it.
One of the biggest advantages of this model for the customer, is the convenience of a single flat rate, deducted automatically from their bank accounts, resulting in one less chore for them to do every month.
On a business standpoint, the subscription provides a regular and stable income that allows the business to plan more into the future and consequently, grow faster.
MBJ LONDON did just that with WaaS (Website as a Service), an innovative service that is changing how businesses buy websites. The website is offered on a monthly subscription that covers all services needed to maintain a website properly.
It is very clear that customers prefer the subscription model, however some industries are still lagging behind in this trend due to the difficulty to adapt. Many companies have a very rigid structure to avoid their processes from falling apart, however that does not accommodate for business model changes.
Another big challenge is consensus. Companies with extensive boards of directors need to get all members, or most of them, on-board with the new idea. Being a new and innovative business model, many risk-averse members will opt out simply for the fear of change.
Entrepreneurs need to analyse new models and think about the benefits that these disruptions could have on their business, and even the industry as a whole.
The best thing to do is to adapt and open your mind to innovation. Even if initially it sounds absurd, like not charging for web development, for example – don’t ever be afraid to change and disrupt an existing situation.
Michelle Laterman is Executive Director – London at MBJ LONDON, an end-to-end design and development firm based in London that offers high quality, low cost online solutions for small to medium sized businesses in the UK, continental Europe, and North America.