Subscription billing charges customers recurring amounts at set intervals (monthly, yearly) for continued access to a product or service.
Why It Matters
Subscriptions create predictable recurring revenue, making businesses more valuable and enabling long-term customer relationships rather than one-time sales.
When to Use This
- SaaS products charging monthly for access
- Tiered pricing with different feature levels
- Usage-based billing for metered services
- Annual discounts for customer retention
Examples
- Netflix charging .99/month for streaming access
- Shopify tiered plans from to 9/month
- AWS charging based on actual usage