Subscription model
E-commerce
E-commerce
A subscription model is a pricing form where customers pay periodically for access or delivery instead of per purchase.
It shifts attention from selling once to keeping: onboarding, usage and service drive revenue more than the campaign that won the customer.
Freemium is a variant: free entry, pay for more. It only works if the free tier is useful on its own and has a clear boundary.
Related terms
- MRR and ARRMRR is your recurring monthly subscription revenue, ARR is the same revenue annualised. One-off projects don't count.
- ChurnChurn is the share of customers or subscribers leaving within a period. It's the counterpart of retention.
- Pricing strategyYour pricing strategy is how you set prices: based on cost, on the market, or on the value the customer perceives.