This Is How You Can Successfully Enter the Booming Subscription Economy

The subscription economy is growing. Start-ups and young companies in particular should offer their target group such subscription offers.

german startups , 04/26/2022 • 3 min. Reading Time • Display

The subscription economy, i.e. business models characterized by flexible subscriptions, is gaining more and more followers. Start-ups and young companies in particular should offer their target group such subscription offers. However, you should not take this step without a suitable service provider who has an overview of all the regulations.

Buying is out, subscribing or renting is in – not only in the software industry. The so-called subscription economy has long included topics such as high-priced electric bicycles, hip digital cameras and stylish office furniture. Not to mention all the streaming services for films, series and documentaries.

A look at current figures from Juniper Research shows just how big the subscription economy already is. In the current year, the subscription economy will grow to 275 billion dollars. Physical goods account for 45% of the subscription market. Subscription models are already among the top 3 payment methods for merchants who rely on subscription models.

Subscription services offer customers one thing above all: flexibility. If you don’t like the subscribed product or if you no longer use it, you can cancel it very quickly. Even if you want to try out a service first, a subscription model is a good option.

Last but not least, subscription models also reflect the lifestyle of many young users. Possession is becoming less and less important in this target group. An electric bike is used every day in summer, but stays in the basement in winter. A subscription concept is a better choice than a purchase.

The image shows a box of personal care products. Handy packed in a box.
More and more customers are trying out subscription models. (Source: photoguns, Adobe Stock)

Companies that are not yet using a flexible subscription service should take a close look at the model. First, to keep up with the times. Many customers are almost put off by rigid annual subscriptions or expensive buy-it-now offers. Secondly, a subscription business also has a major economic advantage: companies that have established a stable subscription business model can use forecasts to plan sales more precisely for the coming year. Subscription models thus give start-ups in particular a certain degree of planning security.

Anyone who wants to rely on a subscription service as a young, aspiring or established company definitely needs a suitable product and the right software to effectively manage topics such as monthly debits, payment methods and monitoring.

Because without the right tool, entering the world of the subscription economy becomes complicated. There are many regulations that must be observed. And with a large number of customer data, products and invoices, the overview is quickly lost.

With the , on the other hand, getting started with complex subscription management is child’s play – within 24 hours! In a free test environment, every young entrepreneur can test the complete software with all features beforehand without obligation.

This picture shows two young entrepreneurs completing various packages. One of the two keeps a list and writes something down.
Young entrepreneurs should try the Subscription Economy model. (Source: nenetus, Adobe Stock)

With subscription billing , not only offers flexible and easy-to-use management of contracts and subscription products, but also automated billing, the integration of more than 25 international payment service providers and a testable monthly statement in the desired format.

Last but not least, as a company you don’t have to worry about GDPR compliance when using, which is backed by nexnet GmbH, which has more than 20 years of market experience. The server location in Germany ensures further legal security. And the integration of the industry-neutral, a cloud product (SaaS) based on SAP, into existing systems is also very easy using an API.

Companies looking for an individual solution for their subscription management are also in the right place with In addition to subscription billing, the enterprise solution also offers topics such as debtor management and receivables management.

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