The Hidden Risks of Subscription Models: Assessing the Potential Pitfalls Before Making the Switch

Thinking about switching your business to a subscription model? Want to grow your mrr? Kick back and watch as you generate automatic revenue weight. Subscription revenue models have hidden risks. Netflix is a great example. They charge a flat monthly fee for unlimited consumption. Record breaking customers watch the Stranger Things. This is digital leverage. The cost of fulfillment doesn't increase with more viewers, but what happens when that customer catches the binge bug? They get hungry. They want more. Now Netflix has to produce or acquire more binge worthy content to satisfy its unlimited supply promise. Thus profit disappears into thin air. So before you jump on the subscription bandwagon, assess the risks. Does a small cancel anytime monthly fee make switching easy for customers? Are your customers subscriptions fatigued? Are people tightening their purse strings? Is there an alternative revenue model that best achieves your and your customers objectives like comment or share? To stop a business owner from launching a subscription service unnecessarily.