We've seen the subscription business model rise immensely in popularity in recent years. The industry grew 350% between 2012 and 2019, and subscription businesses amped up revenues about five times faster than S&P 500 company revenues during that time. And with good reason.
“If you’re running a subscription business that hasn’t been immediately affected [during the pandemic], you are probably grateful for the power of recurring revenue to help you weather this storm,” Tien writes.
Because unlike one-off sales, you can count on recurring revenue as a stable base of future income, and you aren't looking at a precipitous drop in revenue and the need to slash expenses to boot.
For larger businesses who are relatively new to digital services, or are just beginning to test the waters, Tien says now is actually a good time to move forward. Simply put: You’ll want to have these services ready to go when the economy comes roaring back. "Nothing about this moment changes the broader macroeconomic shift towards subscriptions and services." If anything there's a rediscovering of the importance of these two.
On the flip side: For the subscribers out there, Tien pleads, continue to support the services and organizations you like and find worthwhile. This business model works both ways, and now's the time to shine your loyalty on the companies doing it well.
And finally, for the locals: If you’re a local business that doesn’t currently offer a monthly subscription or a membership plan, he advises you to consider doing so. Gartner research predicts that in 2020, all new entrants to the software market and 80% of existing companies will offer some sort of subscription package.
You likely have current loyal customers that would love to support you, and capitalizing on brand loyalty can get you far. Make happy customers into happy subscribers. Because dedicated customers are the bread and butter of a successful ROI.
This isn't to say that starting a subscription company is easy. With a heavy reliance on recurring customer relationships, the subscription model requires constant focus on providing long-term value. Providing that level of consistent and compounding value can happen only when businesses understand their customers at their core—and that happens early on with the planning of the company.
If you're a beginner in the market, we have some sage advice: We put together a nine-step checklist that walks you through how to create a subscription service. Click here for our Complete Experts Guide to Building a Subscription Business.
If the (Zuora-coined) Subscription Economy is about anything, we can attest, it’s a fundamental return to relationships. It’s not about transaction, but connection.
I'm always on high alert for DC's newsletter to arrive in my inbox. We know him as the LL Cool J-loving, five-time founder, investor, ProfitWell neighbor, and good guy over at Drift. The cool thing about his newsletter? It's comprised of the exact email content he sends to his team each Sunday. (So it feels like we're on the inside operation.)
This go-round, he's bringing to light: mentors. Because in this business, the power of mentors is hard to deny. “I talk about mentors so much because I discovered the power of modeling so late in life,” David confides. “I grew up in a time and place where I never heard of or was taught about this powerful idea.”
We've heard the same from folks in this space before, like Chief Instigator and mentor himself, Dan Martell, who says that mentors were the pivoting factor for him in completely turning his life around. (We're talking high-speed car chases and time in prison to seriously respected personal and professional growth milestones).
So what's the talk about? How do you find said mentors? Do you dedicate your search far and wide, or do they simply appear out of thin air? I admittedly have never sought out a mentor, and have been lucky enough to find them in facets of my life in natural ways.
Although I understand some aren't as fortunate in this realm. So seeking a mentor out might just be your play. DC knows it's important to know what to look for, but perhaps just as useful to know what not to. People make big mistakes here, like:
Looking for perfect The biggest mistake that prevents people from ever finding a mentor is searching for perfection. We're all flawed. Focus on the positives you can extract.
Asking first vs. giving first As Jim Rohn said, "poor people should take rich people out to dinner.”Most people expect successful people to give to them vs. giving in turn. Your potential mentor has something you need and you probably don't have much to give them. Remember to give before ever asking for something in return—because the price of that is well worth it.
Aiming too high Make your mistakes with early mentors. Don't make them with your dream mentor. Like anything else worthwhile, it's a skill you have to learn. Work your way up. And keep upgrading your mentors as you progress.
And he leaves us with a hack: The ideal mentor is in-person. Because with this, you learn via osmosis. If that’s impossible, DC says, lean on books and YouTube videos to encapsulate yourself in what they have to offer.
We’re curious to hear who your mentors are—whether they’re well known publicly or a member of your close knit circle. Is finding a mentor even a worthwhile venture? Or is this just another fluffy "growth hack"? Send me your thoughts to firstname.lastname@example.org.
You can also sign up for DC's newsletter, The One Thing, here.
The team at Formlabs, creators of 3D printing hardware who also offer a subscription service for printing pros, is joining forces with a leading Boston-based hospital (and several others around the country) to 3D print swabs used for COVID-19 testing. With the latest design, the team is able to print almost 300 swabs per build platform on the Form 3B with the same biocompatible, autoclavable material as Surgical Guide Resin, a biocompatible material designed for 3D printing.
At present, the Formlabs crew has 1,000 printers ready to help. The process is undergoing clinical evaluation, but when it’s been clinically-assessed and ready to print, Formlabs will alert its community.
They’re also reaching out to that community to connect those in need with those who have engineering, clinical, and 3D printing resources to offer. If you are working on COVID-19 related projects and need access to 3D printed parts, or if you have access to 3D printers and are willing to volunteer your time and equipment in the fight against the pandemic, they’ll do their best to connect available printers and relevant services to the people who need them most.
Will Formlabs help shape the future of testing? There's a lot to discuss here, as the coronavirus conversation is everchanging and, seemingly, everlasting. You can always reach me at email@example.com. I'm all ears.