Investors are key for continuing the expansion and growth of your business. One of the biggest challenges you’ll face as a business owner is ensuring investors that your business model is viable. Entrepreneurs have to fight harder to gain trust of investors because of the uncertainty associated with their future. There are a number of ways you can stabilize your revenue, such as by implementing an Internet marketing strategy. SEO companies in Los Angeles can help you with this and even employ the strategy for you.
Once you have more visibility on the Web, you can focus on more innovative ways to attract customers and investors alike. One way to do so is to introduce a subscription-based model for your company. This would create a regular source of income for your business and instill a bit more faith inside of potential investors.
Regular business plans are based around uncertain data. For instance, a retail business plan makes tons of assumptions about order sizes and repeat purchases. A lot of the guesses of the future are just that, guesses.
Subscriptions help to eliminate the uncertainty aroused in most business strategies. Once you are able to project the number of subscribers you receive monthly, you can begin estimating retention rates and growth. Investors like to have trust in the companies they invest in. This is one way of putting them at ease.
Subscription Models Create Opportunities
You may have noticed more and more companies, large and small, creating business models around subscriptions. They offer a service in exchange for a monthly fee. This could be access to video content or article content. A variety of big names were successful with this, including Netflix, Gamefly and BuzzSumo.
The key is to develop a high-quality product that people really want, and that they can’t find elsewhere, or at least not at a better deal. Sure, Netflix has plenty of competition, but few can offer the same affordable rates they do. Even brands that aren’t electronic-based had great success, like Gillette They created the Dollar Shave Club, which promises to deliver a high-quality product at a low price.
There’s opportunity for everyone to get in on the subscription game and make it a success.
Building Relationships with Customers
A lot of subscriptions fail because the brand has a poor relationship with their subscribers. Once you get subscribers in the door, you need to convince them to upgrade to higher subscription levels. You need to work on creating brand ambassadors, which can be done using a content marketing strategy. Customer engagement is key for building trust and stronger relationships.
Birchbox continues to do this exceptionally well. They don’t settle for just an initial subscribe. They incentive upgrades and become a trusted partner, not just a supplier. If your upgrades aren’t rewarding, then why will people want to pay you more money? Reevaluate your subscription options and product or service to ensure your customers are getting a real bang for their buck.
Quick Tips for Building a Subscription Model
If you’re all game for creating and maintaining your own subscription model, then keep the following tips in mind:
- Base your findings on real consumer data, not just guesstimates.
- Research your competition and see how your model compares.
- Become an expert at something, so to gain credibility and trust.
- Continue to upsell and reward loyal customers.
SEO companies are great at this, especially since many of them have their own subscription-based business model. You can take a few pointers from them, while upping the ante on your content marketing.