How to Switch from Traditional Business to Subscription Model?

Updated 29 August 2022

Have you ever observed that our daily life is based on subscriptions? From media and entertainment apps to eCommerce apps all are providing subscription plans. Let’s discuss, how to switch from a traditional business to a subscription model.

Due to financial growth in the OTT platforms and other businesses more companies are moving to subscription plans to generate revenue.

Also, Firms are focusing to increase sales and marketing growth. 

What is the Subscription-based model?

Let’s discuss, what exactly is subscription business model ? This model is working on a recurring revenue model which is based on the subscription plans. You need to purchase the membership plan that is based on a monthly, quarterly, and yearly basis. This type of service allows merchants to sell products or services regularly.

subscription model

For Instance, if you are using Amazon Prime and you are planning to watch any movie. So you need to purchase a membership to avail the benefits of that OTT platform. 

Current Statistics of Subscription Business Model

Here we are going to introduce recently publish statistics of a subscription model.

Current Statistics of Subscription Business Model

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Advantages of using the Subscription Model? 

Many factors are affecting businesses to use this model.

Use case of Subscription Model

Use cases of this module are given below:


Software as a service (SaaS)

Software-as-a-service companies are also providing subscription software. Which is based on the recurring payment cycle, where the subscription plan details and amount are saved. Which will be handled automatically. 

Here I am sharing with you some SaaS companies based on subscription software. 


According to research, the eCommerce industry is also providing subscription services for its customers. Currently, eCommerce websites are trying to convert their valuable customers from one-time purchases to recurring purchases. 

As they are providing them an option to buy subscription plans. Bagisto, WooCommerce, Shopify, and Magento are the best example of Ecommerce subscription models.


The media and entertainment industry is also moving toward subscription plans. Netflix and Spotify are great examples of music apps that are providing subscription services to their customers. 

They are providing membership plans based on a monthly, quarterly, and yearly basis. 

Streaming Services/OTT Platforms 

The over-the-top (OTT) platform is another way of streaming the media and Television services to customers. There are numerous OTT platforms like Amazon Prime Video, Disney+, Vimeo, Netflix, etc. 

Matrimonial sites

In the last few years, many matchmaking sites are also providing subscription plans for customers. There are two types of services they are providing free service and paid services. 

Paid Services come under the subscription model, where you will get access to a wide range of services like video conferencing, online chat, contact information, etc. 

How to switch from a traditional business to a subscription model?

If you are planning to shift your traditional business into a subscription business model. Here are the following steps to move your business into a recurring business model. 

Strategies before launching Subscription Model

Launching a subscription model will include proper planning and strategy then your business will run smoothly. You have to focus on the below-mentioned strategies –



This stage depends upon the software specifications and the tech statics, which you are going to use for your module. Additionally, you need to configure the billing, invoicing, and recurring automation software. 


In this second stage, you need to check all the components like discounts, offers, payment system, etc. Here you have to check the working of your subscription module. 

You can also check the working of all modules like payment methods, and multiple currency supports. 

Scale your business

At the scaling stage, you have control over the pricing of your subscription model. Revenue operation will find out all inefficiencies of your business model. Also, you need to check all the revenue from day one, thereafter you can expect more profit in near future. 


This is the final stage of the subscription module. In this stage business owners need to focus on sales and marketing growth.  

You also need to focus on subscription and revenue analytics.

Conclusion :

Are you planning to move your current business into a subscription-based model? It is the right time to select the right subscription platform and create a smooth customer journey.

You need to focus on your existing customers and give subscribers a seamless experience. 

That’s all about, how to switch from a traditional business to a subscription model.  If you have any further queries reach out to us at [email protected] or you can raise a ticket at our HelpDesk System.

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