Biz Tips: It’s Time For Your Organization to Take Advantage of the Subscription Economy

Biz Tips: It’s Time For Your Organization to Take Advantage of the Subscription Economy

Biz Tip:

It’s Time For Your Organization to Take Advantage of the Subscription Economy

How many subscriptions do you pay for right now?

If you’re like 84% of Americans, you underestimated. On average, we’re dropping about $240 monthly on subscriptions.

Subscription-based services are wholly interwoven into our lives. And this may just be the best innovation for businesses our economy has seen in decades.

Subscription models don’t stop with consumers. Instead, the maturing subscription economy has revolutionized the way B2B organizations work with each other, how they operate, and how they solve problems.

How “Usership” Solves Big Problems

“Usership” over ownership is the main concept that drives subscription models.

Why own something that will be outdated in just a few months? Or limit your supply of key materials by fronting mountains of cash, rather than paying a fixed fee?

This is exactly how the state of Louisiana has solved a major health problem with a usership model. Instead of buying life-saving drugs transactionally—which makes costs astronomical and unaffordable—they’ve brokered an on-demand subscription. Every month, they get the medication their people need at a predictable and reduced cost.

Usership solves problems on both sides of the fence. So, how can your business take advantage?

Who Can Take Advantage?

The first software-as-a-service (SaaS) company went public in 1998. Over 20 years later, we’re all extremely comfortable with subscribing to software with one-off licenses or at enterprise scale. However, SaaS businesses aren’t the only game in “subscription” town.

Materials and people-powered service businesses have incredible opportunities to take advantage of subscription models, too.

For example, did you know businesses now subscribe to flooring?

While this might seem odd, it’s better.

Because the magic happens when organizations get the right solution, at just the right time, and always for the right price. And all without the hassle of hunting for something new when the material needs to be replaced. Upgrading the office or retail experience is baked right in.

Usership benefits both customer and business. After all, who wouldn’t opt for recurring revenue?

Predictable revenue in unpredictable times is a dream come true.

Alternatively, people-powered companies can also flip traditional business models on their heads.

How About Subscription Staff?

Let’s face it, traditional employment is an administrative black hole and recruitment stinks. Today, the average hiring cycle takes 42 days and costs $4,129! And the most expensive component of nearly every business is its people.

This is a problem staffing companies have tried to take advantage of—and in the past few years the gig economy has tried to solve, as well. However, there are a myriad of problems with both options.

Traditional staffing agencies often offer less-experienced workers, people in-between jobs, as short-term solutions to a people problem, while the gig economy flouts employment law requirements making it a risky solution in most cases.

For major corporations with stringent compliance requirements, especially in the finance sector, this doesn’t cut it. And expert employees are mission-critical for both established companies and new ones.

For instance, 90% of startups fail and one of the main drivers of failure is not building a quality team.

All of these issues make scaling staff painful, risky, and unappealing. However, this is exactly the problem a subscription staffing model solves.

Just like usership in medicine, software, and flooring, there’s now subscription staff (yes the people).

With a simple subscription fee for the amount of hours being utilized, companies and executives can get Fortune-500 trained talent for key roles—and for ongoing long-term fits.

This actually solves three problems:
1. The customers’ hiring woes,
2. Talented workers having flexible, stable, W2 employment with benefits,
3. And a constant stream or monthly-recurring-revenue (MRR) It’s a win-win-win powered by the subscription economy.

What Problems Can You Solve With A Subscription Model?

Scores of companies in traditional industries have found major problems a subscription model uniquely solves.

For your business, what are the evergreen pains your customers face?

Subscriptions are only picking up steam in the new global economy. The research giant McKinsey found subscription revenue rose from $57 million in 2011 to $2.6 billion in 2016—and it’s just heating up.

Imagine guaranteed revenue with less friction for you, your clients, and your employees… That is the power of the subscription economy.

How can you take advantage of this model?

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