How Do You Know Which Model Is Right For Your Subscription?
Businesses are embracing subscription models for one reason – because they create recurring revenue. What’s recurring revenue? Well, we’ve got another article that dives head-first into the details behind the concept, but here’s a brief refresher.
Recurring revenue is essentially revenue that continues to recur regularly. This means that a business can count on its recurring revenue to continue to fill its coffers consistently. Typically, recurring revenue comes in the form of a subscription service, and it provides businesses with revenue certainty over long periods of time.
How Can You Build Recurring Revenue?
One of then best ways to build recurring revenue is to adopt a subscription model for your small business. By doing this, you can rely on guaranteed, predictable, and dependable revenue coming directly through subscriptions that your customers purchase.
But with that said, you’re going to need a way to manage, promote, and handle your subscriptions, right? Thankfully, there are a number of subscription billing software applications available on the market for you to choose from. How can you find the right one for your needs? Let’s take a look at ten simple tips for you to follow.
1. What Does Your Recurring Revenue Look Like
One of the most important things to consider is knowing exactly what your recurring revenue will look like. Will you go through an automated payment model or a subscription model? What about manual, in-person payments when people come to visit your store or establishment? Remember, subscriptions can come in a number of different forms, and given the times that we live in now, it might be beneficial for you to have a flexible payment software platform that allows you to change the structure of your recurring revenue programs as you see fit.
2. What Types of Payments Do You Want To Accept?
What types of payments do you want to accept? Will you accept cash? Will you accept payments through PayPal? What about financing? Credit cards and debit cards? This is something that you’ll have to consider, because it’ll dictate how soon you receive your revenue after a payment is completed and submitted. Not to mention, if you choose to accept credit or debit cards, you may have to go through a third-party processing vendor to complete payments, which might take a cut out of your revenue.
3. How Big Is Your Business?
Businesses come in different sizes – even in the same industry. Depending on the size, scale, and scope of your business, you might want to choose a different platform. In other words, different platforms work well for different businesses. Some platforms are meant and priced for enterprise-level organizations, while others are designed specifically for small businesses who are only dealing with local customers for the most part. Depending on your size, you’ll want to choose the most appropriate platform.
4. Do You Need A Merchant Account?
This one might be a little less straightforward, but determining if you require a merchant account is something worth considering. With a merchant account, you’ll be able to accept credit and debit card payments because you’ll have a specific bank account devoted to it. This is something that you’d have to work out with a bank, and although it isn’t complex, it’s another step in the road that you’d want to take, depending on the type of payment methods you’d like to accept.
5. Look For One With Tax Integration
Remember, taxes are real – and every business is liable for paying their fair share of taxes. Thankfully, there are a number of subscription payment platforms out there that have tax integration built-in to make it easier for businesses calculate taxes through automation – even those from different states with different rates. One of the last things that you’ll want to have to worry about with your subscription model is knowing if you correctly calculated tax, so look for a platform that supports fast processing.
6. Do You Want To Take Payments On The Spot?
Do you want to take and accept payments on the spot? In other words, how many people do you envision using the software? If it’s more than just one person, look for a multi-user software platform and compare the prices per user to determine if it’s cost-effective for you.
7. How Much Does The Platform Cost?
Most platforms that support business needs, like your subscription services, allow businesses to pay for them in the form of a subscription as well. Some may charge per transaction, and others have fixed fees. When you’re searching for the right platform, be sure to compare fees and find the one that offers you the biggest bang for your buck.
8. Reporting & Analytics
We live in the age of big data, and it’s important that you’re able to see how your subscriptions are performing in real-time. Choosing a platform that provides automated reporting and analytics is a good way to stay on top of your business. For instance, you might want to see how many of your subscriptions are made up of new customers, or you might be interested to know how many subscriptions are paid monthly versus those that are purchased yearly.
9. Look For One That Does It All
All eight of the tips that we’ve discussed might seem like a lot to think about when searching for the right platform. Thankfully Upscribbr, makes your job easy.
Upscribbr is an app specifically designed to make it easier for businesses just like yours to manage subscriptions, market them, process payments, and generate recurring revenue all at the same time. Not only that, but it functions as a platform for customers too – it allows customers to search for subscriptions that they might be interested in, discovering new businesses, new products, and new services along the way.
10. A Lead generation Machine
Upscribbr is so much more than just a subscription payment platform. It is a lead generation machine because it places your subscription model right in front of the eyes of local customers who are interested in a subscription plan. This means that you can retain existing customers, and attract new ones all on the same platform.
Not to mention, you can even use Upscribbr to advertise and market your subscription to interested leads. From there, assign team members to specific tasks through the platform and manage it all seamlessly. Upscribbr is more than just a payment platform – it’s a comprehensive subscription management workflow specifically designed to help you attain recurring revenue.
Want to learn more? Try the demo today.
Marketing specialist @ Upscribbr