Speaker 1: Helping leaders motivate their people to a higher level of
Speaker 1: performance through strong human relations, team building, and goal achieving.
Speaker 1: This is the seven Minute Leadership Podcast with your host
Speaker 1: Paul Fellovaldo.
Speaker 2: Hello everyone, and welcome to this seven minute leadership podcast.
Speaker 2: It's episode two eighty one, and today we're talking about
Speaker 2: a game changer for businesses looking to create stability, and
Speaker 2: that's the subscription model. Whether you're leading a small business,
Speaker 2: a nonprofit, or a large organization, implementing a recurring revenue
Speaker 2: model can give you financial predictability, customer retention, and long
Speaker 2: term growth. So let's dive into how you can use
Speaker 2: this model to create sustainability and why it works. And
Speaker 2: I will be the first to admit I remember back
Speaker 2: in the day, and I can't believe I'm saying that
Speaker 2: because it's like yesterday. But do you all remember when
Speaker 2: you used to be able to just buy an app
Speaker 2: for ninety nine cents or a dollar ninety nine and
Speaker 2: then all of a sudden, everything, and I mean everything
Speaker 2: under the sun became a subscription model. So here's why
Speaker 2: a subscription based model provides consistent revenue, helping a business
Speaker 2: break free from the unpredictable cycle of one time transactions.
Speaker 2: It allows businesses to increase predictability because with subscribers paying
Speaker 2: on a monthly or yearly basis, you can forecast revenue
Speaker 2: more accurately, and it builds customer loyalty. Subscribers become long
Speaker 2: term customers, reducing the need for constant marketing and acquisition,
Speaker 2: and you can scale efficiently. Instead of chasing new sales,
Speaker 2: your focus shifts to enhancing the value of the subscription,
Speaker 2: leading to organic growth. And this model works for a
Speaker 2: variety of industries everyek from software, media, fitness, healthcare, and
Speaker 2: even public safety organizations like ems memberships. So here are
Speaker 2: four examples of subscription models in leadership and business first
Speaker 2: Software as a service think of Microsoft three sixty five
Speaker 2: or Adobe Creative Cloud. Instead of one time purchases, customers
Speaker 2: subscribe to receive ongoing updates and services. And how about
Speaker 2: membership based organizations Planet Fitness, La, Fitness coaching programs and
Speaker 2: even nonprofits use memberships to ensure steady funding and product subscriptions.
Speaker 2: Monthly subscription boxes for everything from coffee snacks to first
Speaker 2: aid supplies, protein powders, or certain products from QVC and
Speaker 2: last is service based subscriptions leadership, coach and consulting, and
Speaker 2: even ems agencies offering annual membership programs to provide services
Speaker 2: at reduced rates. So how do you implement a subscription
Speaker 2: model in your organization? If you're thinking about applying this
Speaker 2: to your business or nonprofit, follow these key steps. Identify
Speaker 2: a valuable offering, what can your customers, clients, or community
Speaker 2: members subscribe to that provides continuous value, and then price
Speaker 2: it right. Find a balance between affordability and sustainability. You
Speaker 2: don't want it so low that you're losing money, but
Speaker 2: not so high that people hesitate to subscribe, and then
Speaker 2: focus on retention. Getting subscribers is one thing. Keeping them
Speaker 2: is another. Provide ongoing value, exclusive perks, or even small
Speaker 2: incentives to keep them engaged, and automate where possible. Use
Speaker 2: subscription billing platforms like Stripe, PayPal, or specialized software to
Speaker 2: streamline payments and reduce the administrative work. And it's important
Speaker 2: to note that as leaders, we can learn valuable leadership
Speaker 2: lessons from the subscription model and how we run organizations.
Speaker 2: Consistency matters. Just as recurring revenue creates stability, consistent leadership
Speaker 2: build strong teams, and retention is more valuable than acquisition.
Speaker 2: In business and in leadership, keeping great employees and customers
Speaker 2: is more valuable than constantly finding new ones, and adaptability
Speaker 2: is key. Successful subscription models evolve with customer needs, just
Speaker 2: as effective leaders adjust their approach to meet the demands
Speaker 2: of their teams. Recurring revenue creates financial security, allowing organizations
Speaker 2: to plan ahead and invest in growth. If you're not
Speaker 2: already leveraging some form of subscription or membership model, it
Speaker 2: might be time to explore how it can work for you.
Speaker 2: If you're already doing it, review the tips that I mentioned.
Speaker 2: Make sure it offers value as priced right and your
Speaker 2: customers are engaged. If you're thinking of doing it, don't
Speaker 2: just hit the launch button without doing some homework and
Speaker 2: strategic planning you wanted to hit and stick with your
Speaker 2: customers as soon as you make it public. This has
Speaker 2: been this seven minute leadership podcast, and I thank you
Speaker 2: for listening.
Speaker 1: For more, Paul Fell of Alito Podcasts, visit paulfellowalito dot com.