Having been influenced by my fair share of direct marketing campaigns over the past few years, there's one thing I learned. Anytime you can charge customers more than once, you win. Acquiring new customers can be very expensive and hence it's much smarter to get someone to buy again than to get a person to buy for the first time. Best case scenario, you get all your new customers to be repeat buyers - which really is the foundation of the subscription model.
From a business perspective, it's simple. You increase the lifetime value of a customer which allows you to spend more money to acquire new customers. That equals a true competitive advantage over your competition.
Subscriptions don't necessarily mean that you're shipping people diet pills or skin care products on a monthly basis. Even though, those are two obviously very profitable categories.
So are software subscriptions, and to an extent even magazines.
Netflix forever revolutionized the movie business.
But you can also build a subscription business with everyday products and services.
I am no girl, even though every once in a while I get to talk to one, but for a good example of an interesting subscription service, check out Shoedazzle. They call themselves the world's premier shoe society and for $39.95, they send you a new pair of shoes every month. Free shipping included. That is smart.
Or, how about Flying Noodle. What started as a Fruit Club (they deliver you fresh fruits on a monthly basis) has now led to several "club" driven business models. There's the lobster club, the hot sauce club, and even an Olive Oil club.
Subscriptions work. Can you sell your products or services on a subscription basis?