Since Provy pivoted, we can see businesses that are best suited for the recurring revenue model.
Even though businesses from many different industries have been transforming themselves to fit into the recurring revenue model, certain business types are particularly suited for this business model.
Businesses that provide access to media content, like audio, video, courses, and books, have been very successful adopters of the recurring revenue model.
When people subscribe to these services, they sign up to enjoy access to the services exclusively. Thus, the content-based business’s appeal is that the only way to get complete access to the content you want (be it movies, songs, or books) is to be a subscriber of that particular service.
For example, if you are a subscriber of Amazon Prime, you can access some e-books in Kindle format. However, to get unlimited e-books, you have to subscribe to Amazon Kindle specifically.
Many software companies offer access to their apps on a subscription basis (SaaS) instead of one-time sales. SaaS eliminates the cost of initial software setup and the difficulty of implementing product updates. While the traditional one-off sales model makes it quite tedious for the software developers to deliver product updates to the end-users, the SaaS model makes it a simple, automated process.
A popular example of the product-based subscription model is subscription boxes. Customers sign up to receive boxes of a particular product at scheduled intervals (weekly, monthly, or quarterly). Based on demand, these boxes are roughly categorized into two types: convenience and curated.
This year we can see how growing subscription business in the legal, accounting, finance, and consulting spaces.