Subscription business model: Difference between revisions

Revision as of 02:40, 18 February 2025

Revision as of 03:04, 13 March 2025

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Renewal of a subscription may be periodic and activated automatically so that the cost of a new period is automatically paid for by a pre-authorized charge to a [[credit card]] or a checking account. A common variation of the model in online games and on websites is the ''[[freemium]]'' model, in which the first tier of content is free. Still, access to premium features (for example, game power-ups or article archives) is limited to paying subscribers.<ref>{{Citation | year=2023 | title=What is the SaaS Subscription Revenue Model? | url=https://whop.com/blog/saas-subscription-revenue/ | access-date=10 November 2023}}</ref>

In addition to the freemium model, other subscription pricing variations are gaining traction. For instance, the tiered pricing model is frequently used in software as a service [https://unibee.dev/saas-subscription-management/ (SaaS) platforms], offering customers different access levels and features based on their subscription tier. This model is particularly effective for tailoring services to customer requirements. Another approach is the usage-based pricing model, which calculates charges based on the extent of service or product utilization by the customer. This model is becoming increasingly prevalent, especially in services where customer usage varies significantly.<ref>{{Citation | year=2023 | title=Pricing Models for Software – How to Choose the Right One | url=https://www.growthlead.co/pricing-models-for-software/ | access-date=26 November 2023}}</ref>

===Types and examples===