Using Subscription to Boost Product Sales
Adam Lilling is a Serial Entrepreneur & Investor (http://www.lilling.com/). In this video he discusses using subscriptions to boost product sales.
- Creates a recurring revenue stream
- Establish regular customer base
- Provide high margin opportunities
One of the areas that I'm investing and spending a lot of my own time in is social commerce and specifically subscription. If you think about it, not like digital media where you have all this subscription music services or platform or online magazines where you buy subscription but literally selling products to consumers on a regular basis.
Think, Food of the Month Club. I mean, it's now a world where everything is turning into a subscription. The reason why is because it's a recurring revenue stream. You can predict revenues on a month to month basis. You'll have regular customers. You'll be selling to them every month so you'll have that opportunity to upsell them every month as well.
And these are high margin opportunities. If you look at products that people need on a regular basis, whether they have high margins or not, you’ll be able to work with manufacturers and dealers to get the price down cause you're buying on a regular basis and enough quantity. You’ll even be able to do private label on some of your own products.
Though subscription's not for everyone. Take a look and see what you sell off and more specifically what a customer buys often from you and think about how you can keep them as a regular customer instead of a one time customer.