Originally written by Anna Jordan on Small Business
Firms are increasingly incorporating subscriptions into their business models – or shifting to a subscription-based model entirely.
With restrictions, lockdowns and further uncertainty ahead, it looks as if this will continue to grow as entrepreneurs look at new ways to do business which will give them a steady income that can be sustained online.
We explore the surge of the subscription-based business model and what a business needs to do to get started.
Why should I introduce a subscription service?
Subscription economy is worth £323bn, according to research from Barclays Payments. 65 per cent of homes are signed up to a subscription service, with the average number of subscriptions totalling seven. UK spends £552m a year on subscription services. Increased 50.2 per cent year on year during April – the height of lockdown.
Zuora’s COVID-19 Subscription Impact Report reveals of those businesses that already offer subscriptions, four out of five companies are still growing despite the economic impact of the COVID-19 pandemic.
In fact, 50 per cent of all subscription companies are growing just as fast as they were before the pandemic while 18 per cent are seeing an acceleration in subscriber growth.
What’s more, subscription companies tend to be