subscription-model

Vocabulary Word

Definition

'Subscription model' is a business plan where customers make regular payments to access a product or service. It's like paying a monthly charge for your gym membership.

Examples in Different Contexts

In Software as a Service (SaaS), the subscription model allows users to pay a recurring fee to access software online, rather than purchasing it outright. A SaaS provider might say, 'Our subscription model offers flexibility and scalability to customers, ensuring they always have access to the latest features and updates.'

Practice Scenarios

Creative

Scenario:

We are constantly adding new features to our platform. How can we assure our users benefit from these updates without increasing the user acquisition cost?

Response:

Utilizing a subscription model would allow our users to enjoy all new features while providing us with a predictable income.

Tech

Scenario:

Our software product's sales have dipped since the initial launch. How can we assure consistent income and service?

Response:

A subscription model might be our best bet. It provides constant software updates to customers and a steady revenue stream for us.