Are you thinking of moving to Discord but the idea of following a subscription monetization model sounds scary? To make matters worse, there are many myths around subscription management that act as a roadblock in the path to move towards the professional chat-based platform. When you have a cloud-based membership management platform, like Ternary development, by your side you don’t have to worry about a thing.
Subscription business models give businesses a predictable income stream and loyal customer base. For example, if you create an online piano course, you can provide course videos on how to play a specific song and sell them individually or as a bundle. But, for that, you must find new leads, convince them to buy from you and spend a lot of time, as well as money, to market your videos. Alternatively, you can build an online community via a membership platform where subscribers get unlimited access to different course videos. As a result, you get a regular income stream from a trusted group of members.
Subscription monetization models offer numerous benefits but many businesses are still skeptical about shifting from traditional models to subscription-based models. Subscription management myths are the primary reason why businesses fail to enjoy the benefits of an online subscription platform.
In this blog, we talk about common subscription management myths and examine the truth behind them.
Myth 1: Managing subscriptions is a challenge
Now that you have created an account on Discord, managing subscriptions, billing and payment trifecta gives you sleepless nights. Dealing with multiple license options, pricing, managing customer lifecycle operations, like billing, monetization, and subscription changes, is not easy. But with the right SaaS tools, you can manage all this. Scale your business on Discord through our membership management platform and make the most of it.
Myth 2: You are stuck with a single payment provider
You or the service provider do not handle your payment data. If you are working with a specific payment provider and want to shift to another, you can easily do so but you must be aware of the terms in the payment contract and rules regarding data transfer. If your customers are facing problems regarding the terms of the contract or cooperation problems, set up a new payment provider system.
Myth 3: Difficult to transition from a lifetime license to a subscription-based business or SaaS
Yes, transitioning from the traditional model to a subscription-based model can be a little challenging initially but if you have a foolproof plan, everything becomes easy. You need to consider a few things to make the transition easier for everyone, including your customers.
- How can you make the transition smooth?
- What pricing structure is best for your company?
- What tools do you need to manage the subscription lifecycle?
- What metrics will you track?
A plan that answers all these questions will make transitions easier.
Myth 4: You can’t change the subscription price
Through subscription models, businesses receive a steady revenue. Also, according to a recent study, companies that update their price every quarter increase their average revenue per user by almost double. The reason is, when a customer uses a product over time, the more valuable the product becomes, the greater the chance for firms of price increases. Customers will pay more for their subscriptions with the existing company than finding a new partner.
Myth 5: Difficult to renew subscription
Yes, but it’s only partially true. There is inevitable churn you must avoid when renewing the subscription. For this, perform the following steps:
- Send renewal offers to customers.
- Properly segment customers and create a targeted plan.
- Always have a clear exit path.
- Offer grace periods.
- Provide incentives for auto-renewal.
According to a report by Gartner, 80% of software vendors will shift to subscription-based models; if you want to be amongst them, switch to Ternary Development to make the most of a subscription platform. We will help you scale your Discord community by providing the right SaaS-based membership management tools. Ready to start your membership management journey? Sign up for our platform now!