A person using an online subscription service on their laptop.If you’re an entrepreneur, business owner, or even a creative freelancer you’ve got two basic options when it comes to bringing in revenue from your customers and clients: charge by the service or product or work out a subscription billing model. The former might sound simpler and easier to sell, but there are numerous advantages to subscription business models – for you and your customers alike.

If this weren’t the case, why would subscription-based businesses be booming right now? Netflix has replaced Blockbuster; Dollar Shave Club has cut into the profits of the corner drug store; waiting for Blue Apron to deliver has become the new grocery shopping; even the e-commerce world has plunged into the subscription game with Amazon’s well-publicized Prime service.

But why is this the case? What are the benefits of the subscription business model? Let’s take a closer look.

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