The Ultimate Guide to Subscription
How to create a net positive subscription. A killer framework that can be applied to your business.
Subscriptions have been around for decades.
John Warillow in his seminal book “The Automatic Customer” have outlined nine and this was in the time when the term SaaS haven’t yet been invented. The “Dollar Shave Club” era if you know what I mean.
Since then Amazon Prime, Apple One, Uber One and alike came on stage. Nearly every respected marketplace has launched a subscription.
Dozens of dense articles have been written on the phenomenon of SaaS (take Kyle Polar’s blog for instance).
But despite plentitude of data, it’s hard to find answers to basic questions. Are subscriptions sustainable? Why some subscriptions work yet other flounder? What makes for a good subscription? Believe it or not, a simple formula does exist.
Below I’ll share the good/the bad examples (where I was involved) and will share some (non-NDA) insider knowledge on the topic.
Let’s roll.
Today’s article
The basic subscription framework. Margins game. The Hook. Second order effects.
The math behind the subscriptions. Estimating the contribution margin of your subscription.
The Good and “Not so good” examples. Two breakdown of two real case studies from Wolt+ and Bolt.
