Subscription business models aren’t merely for razors and beauty boxes. Could your business profit from building a recurring revenue stream?
Subscription billing (additionally called recurring payments, automatic payments or automated billing) means you possess an agreement that will automatically charge your repeat customers’ payments to a saved credit (or debit) card, rather than them needing to remember to pay each and every invoice.
The most important reason to adopt recurring billing is to make your revenue much more predictable, leading to improved cash flow administration and more time to spend on the activities that make you money.
A subscription business model can work for both product- and service-based companies, and can also be set up for only a portion of your customers. Just by having even a piece of your customers on subscription helps you build relationships and brand loyalty. And if you possess the right tools to handle your automatic payments, you’re going to free up a bunch of time that you used to devote to billing clients and running down payments.
Automatic payments are designed to help a wide variety of businesses– each with their own different challenges– run smoother.
Here’s a glance at how three different businesses can use automatic payments in order to save time.
Gyms, yoga studios and boutique health and fitness clubs naturally lend themselves perfectly to a subscription model. Because many gyms use memberships with regard to the bulk of their customers, automatic billing is essential making things simple for personal trainers, for example, to set up new clients on auto-pay as they join, and conveniently see the status of all their customers’ payments.
Photographers, freelance writers, website designers, and other creative professionals have customers who use their services frequently, as well as those who don’t. offers these freelancers the choice to bill their regular customers automatically, and still produce professional, personalized invoices with adaptable payment options for their ad hoc customers.
Home service companies frequently have loyal customers who go to them on a recurring basis, but the seasonal nature of their business implies they need more flexibility for billing their customers. For instance, landscaping companies may possess some customers who make use of their services weekly, and others that call a few times a season. There are flexible scheduling tools available so that landscapers can schedule automatic payments daily, weekly or even monthly or they can completely customize the frequency to fulfill their needs.
Automatic payments and their setup is just another way we can help here at Profit Foundry.