subscription-economy

The Rise of the Subscription Economy

In this blog, we covered in-depth the rise of the subscription business model as the dominant model in the tech startup world and beyond. There are several reasons for that, which are mainly addressed in The Power of the Subscription Business Model:

The Power of the Subscription Business Model

In this short article, I want to report some of the numbers from the Subscription Economy Index from Zuora, a company that sells subscription management services.

As reported from Zuora:

Growth rates per customer segments:

B2B growth: 20%

B2C growth: 9%

B2A growth: 14%

Growth rates per industry

SaaS growth: 23%

Telecommunications growth: 9%

Media growth: 10%

Corporate Services growth: 5%

Average annual growth:

< $1M: 18%

$1M-$20M: 18%

$20M-$100M: 14%

$100M+: 28%

Churn rates:

B2B: 26%

B2C: 35%

B2A: 27%

Corporate Services: 35%

Telecommunications: 29%

SaaS: 25%

Media: 36%

You can consult the whole report here.

For a better understanding of the subscription business model industry read this: 

subscribed-book-amazon

Resources to get your business started:

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which he brought to reach over half a million business students, professionals, and entrepreneurs in the last year | Gennaro is also Head of Business Development at a tech startup, he helped grow at double-digit rate and become profitable | Gennaro is an International MBA with emphasis on Corporate Finance | Subscribe to the FourWeekMBA Newsletter | Or Get in touch with Gennaro here

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