Thursday 4 June 2009

Can You Sell A Subscription?

If you do regular work for a client one way that you can create a model for payment is by creating a subscription to your services.

Imagine you have a property client. For example, a University, that needs planning, landlord tenant contracts, eviction debt collecting etc. A whole gamut of wants that you can bundle into a service.

Now you do a contract for 12 months at £100,000. You estimate the work will be worth £200,000 in time, so the Uni saves £100,000. That's great for them.

You agree to look at the deal after 12 months to make sure you are not massively
undercharging.

And you agree both sides to look at negotiating up or down
based on value to both sides. You will get more efficient over time. And you get continuity revenue.

The Uni can budget. It also only means one bill a month rather than lots of small and irritating bills.

Gas companies do it. Magazines do it. People like subscriptions. And the bonus is you develop a system that is efficient.

Otherwise you lose money. That's a great incentive to you becoming hyper efficient. And that is how supermarkets compete. So take a leaf out of Tesco's book. Become hyper-efficient and sort out your own Clubcard locking your clients in.

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