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Business Terms
Subscription
Definition
A recurring payment arrangement for ongoing access to a product or service.
Overview
Subscriptions provide predictable revenue for businesses and convenient access for customers. They're common for software, content, and ongoing services.
Example
A SaaS company charges $99/month for access to their invoicing software.
Best Practices
Clearly communicate pricing, renewal terms, and cancellation policies.
Common Mistakes to Avoid
Unclear cancellation process
Hidden fees
Not delivering ongoing value
Frequently Asked Questions
How do I price a subscription?
Consider value delivered, market rates, and desired customer lifetime value.