Subscription: Should it be encourage in all businesses?

A subscription is a business model where a customer pays a recurring price at regular intervals (such as weekly, monthly, or annually) to gain continuous access to a product or service.

People with active subscriptions often enjoy certain benefits that regular users may not.

While subscriptions are beneficial to both customers and businesses, not everyone can afford the payments nor needs certain advanced features or benefits. Not every business needs a subscription, especially if such a business does not provide financial, emotional, mental, or intellectual benefits to its customers. If a business like WhatsApp initiates a subscription, just a few or none of the users would bother with the implemented features because they gain no financial benefits.

Image gnerated using Gemini AI

But for growth, money realized from subscriptions would help ensure the smooth running of every business, provided there is something customers benefit from. However, customers benefit more when they subscribe to certain businesses than the business itself benefits. Most money realized from subscriptions is not spent on luxuries; it is put back into the business to ensure smooth operation. When a user subscribes, they serve as a stakeholder—their contribution aids in the growth of the platform or business, but the management also invests funds realized from other sales.

Customers, on the other hand, retain all the profit they realize from using the services provided. While both the customer and the business management play a role in ensuring the survival of the business, users benefit more. No one subscribes to a service where they will gain nothing, yet a business still invests money daily and effort to ensure the business survives.