5 Tips for Growing a Subscription-Based Business

<p>A subscription-based business has its own extraordinary advantages and disadvantages. But now more than ever, subscription models are as valuable as they’ve ever been: “While S&amp;P 500 sales in Q1 2020 contracted at a -1.9% annual rate, subscription-based revenue continued to thrive, growing at 9.5% in the same quarter, according to <a href="https://www.businesswire.com/news/home/20200608005104/en/Subscription-Businesses-Remain-Resilient-COVID-19" target="_blank">Zuora Chief Data Scientist, Carl Gold.</a>”</p> <p>Of course, <a href="https://www.investopedia.com/ask/answers/042715/how-do-subscription-business-models-work.asp#:~:text=Subscription%20business%20models%20are%20based,or%20yearly%20recurring%20subscription%20revenue.&amp;text=In%20essence%2C%20subscription%20business%20models,to%20a%20good%20or%20service.">subscription business models</a> are based on the idea of selling a product or service to receive monthly or yearly recurring subscription revenue. Of course, it’s good work if you can get it, but <em>securing</em> customers isn't all that matters — it’s about delivering consistent, ongoing value.</p>