One person can unlock exponential growth
Case in point: Spotify and Sean Parker.2005: Sean Parker resigns from Facebook, joins Peter Thiel’s Founders Fund.2008: Spotify launches in Europe.2009: Parker, intrigued by Spotify, emails Daniel Ek.2010: Founders Fund invests €11M in Spotify. Parker gets a board seat.2011: Facebook partners with Spotify.Within 24 hours, Spotify gains 1 million new sign-ups.In just one month, Spotify’s […]
52% of U.S. households have Amazon Prime
That’s more than those who:→ Own a gun→ Go to church→ Have a landlineHere’s why Prime works, and how you can apply the strategy:𝐒𝐤𝐢𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐆𝐚𝐦𝐞:Free points loyalty programs are done.The future of loyalty is paid. Amazon gets it.Once people subscribe to Prime, they shop more to justify the $139 fee.Take away:Create paid offerings […]
The subscription economy is taking off – literally
Beyond food, personal care, and automotive, travel is emerging as one of the fastest-growing segments in the subscription space.Wizz Air’s “All You Can Fly” pass for €499 is just the latest story, but the real value of travel subscriptions goes far beyond the deals.Here’s why the travel industry is embracing ‘subscription’:𝐑𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐑𝐞𝐯𝐞𝐧𝐮𝐞:↳ Predictable income shields […]
First-mover advantage is a myth
Great companies are usually not the first to market.First movers might set the standard.They might capture early adopters.But they also stick their necks out,and learn the hard lessons.These lessons pave the way for followers to innovate more cost-effectively.Consider this:→ Ford’s Model T wasn’t the first car. The Benz Patent Motorcar was.→ Miller Lite wasn’t the […]
How to use free trials to 3x subscriber acquisition (and not lose your shirt doing it)
Thinking about offering a free trial?Here’s what you need to know:1. Churn is real.Free trials can drive acquisition, but come with a catch—churn.There’s a huge cohort of customers who want something for nothing.If you don’t understand your trial cohort’s churn rate, keep your volume low to start.2. Payments can get tricky.Offering free trials opens the […]
Only ‘Fans’ is the future
OnlyFans is a subscription-based platform where creators monetize directly, by offering exclusive content to subscribers.Known for adult content, it’s a place where creators control their earnings, sharing everything from photos and videos, to personalized interactions.Fans pay a monthly fee, and creators keep 80% of the revenue.The Numbers:→ $5.6 billion in creator earnings since launch.→ 220 […]
The power of priority
Priority is the new premium.And customers are willing to pay for it; over and over again.Here’s how top companies are leveraging priority to drive subscription revenue:→ Amazon Prime: Same-day shipping that beats the wait.→ Clear & TSA PreCheck: Jump to the front of security lines.→ Uber One & Lyft Pink: Faster pickups, less waiting.→ Instacart […]
8 pricing models dominating the subscription economy
↳ (And why 99.9% of businesses are using them)1. Flat-rateOne price.Unlimited access.No surprises.Customers crave simplicity.They love transparency.And they need predictability.Seen in: Streaming, Entertainment, Media, Loyalty programs.2. TieredDifferent customers.Different needs.Different price points.Hot take: Rule of 3 – no more, no less.Seen in: SaaS, Fintech.3. Usage-basedPay for what you use.Nothing more.Nothing less.This model fits like a glove…Especially […]
Your goal should be to not lose a single customer
If it isn’t, you don’t understand retention.Here’s how you can make it happen: Months 1-4: CRISP→ Communicate constantly to build trust.→ Reaffirm your value proposition early.→ Implement simple and seamless onboarding.→ Support customers with training.→ Provide exceptional customer service.Months 5-8: CARE→ Check in regularly and gather feedback.→ Audit billing and payment systems for accuracy.→ Resolve […]
The subscription economy is over $500 billion
Here’s how we got here:𝟏𝟗𝟎𝟎𝐬: The Magazine BookHarper’s, Cosmopolitan, and Vogue slashed prices, leading to explosive growth in circulation. Paying subscribers became the backbone of their revenue streams.𝟏𝟗𝟐𝟔: The Birth of Book of the Month ClubIn its first year, the club reached 4,000 subscribers.By 1927, that number skyrocketed to 60,000.𝟏𝟗𝟓𝟑: Playboy Hits the StandsThe iconic […]