Three Tips to Build Subscriptions and Recurring Billing Commitments
In the past, it was much more common to see people purchase products on the internet on a one-time basis, or as needed. Recurring payments were a rarity and usually reserved only for bigger businesses who could afford independent and dedicated payment processors. As technology has improved and we gain more access to unique payment solutions, just about anyone can now handle payments and set up recurring billing commitments. What exactly are recurring billing commitments useful for? From monthly subscriptions to political campaign contributions, there are a lot of uses for this utility. Below, we’ll talk about three ways in which you can convince people to engage in recurring billing commitments and maximize revenue.
Find the Right Model
Before you begin to attempt collecting multiple recurring billing commitments, you first need to assess your options. At the end of the day, there are basically three models to consider. The first is a subscription-based model, which consists of a fixed payment for access to either products or services and is billed at regular intervals based on time. The second model is usage-based, which bills people based on how much they consume or desire; this can be thought of simply as “pay as you go”. The third model is a combination of the two, and uses subscription as a base (with incremental benefits and/or additional products available for an additional fee).
Selecting Your Systems
Once you have determined the right model for your business or brand, the next step is to select the software and systems that will be responsible for managing it. There are plenty of simple software solutions out there that can handle one or more portions of the process for you, but a complex system that tracks all elements of the subscription or recurring billing process often comes with additional fees. You’ll need subscription management solutions when pinging your website with offerings, usage management software to keep track of what people are using and/or buying, and billing management to combine the two previously mentioned elements.
Planning for the Inevitable
After you’ve selected your model and systems for processing payments, it now comes down to planning for future events and a variety of other elements. For instance, how often will you provide special offers (and how will people handle this when using your subscription or recurring billing systems)? What systems will you use to distribute content once individuals have paid? How will various forms of content be delivered when it is a one-time download or purchase (that still requires monthly or weekly subscriptions)? These capacities will not only be necessary for pinging your website’s offerings effectively, but they will also help keep you ahead of the curve and the competition for the foreseeable future.
Recurring billing commitments can ensure that people continue to purchase from you regularly and will ultimately maximize revenue. By picking the right subscription model for your needs, selecting the appropriate systems for your needs and planning for future functionality, you’ll ensure that the competition fails to catch up with you and that your customers remain committed to your services.