Customer acquisition is one of the biggest expenses for most businesses. Whether you’re running ads, creating content, or attending trade shows, the cost to acquire a single customer can be significant. That’s why savvy entrepreneurs don’t stop at the first sale—they look for ways to get paid over and over again by the same customer. This approach not only boosts overall revenue but also spreads the high cost of acquisition over a longer, more profitable relationship.
I learned this firsthand when I used to sell a video series on Oil and Gas Investing designed to educate investors. In the early days, the product was distributed only on DVDs. Once the sale was made, that was it—there was no natural path for the customer to keep paying me. While I was grateful for the initial revenue, I quickly realized the model was flawed. I was constantly on the hunt for new customers, which kept my acquisition costs painfully high.
Then I took a step back and looked at what others were doing. Netflix stood out. They started out renting DVDs too—but instead of charging for each rental, they charged a monthly subscription fee. That was the lightbulb moment. I thought, “What if I could offer my educational videos on a subscription basis, just like Netflix?” By transitioning to a recurring revenue model, I no longer had to rely on the one-and-done sale. Instead, I built a business where the revenue stacked month after month, turning customers into long-term subscribers.
This change gave me a more predictable income stream and allowed me to invest more confidently in customer acquisition, knowing I had a longer runway to recoup my investment.
Years before this transformation, back when the internet was still in its infancy, I tried to launch another subscription-based service. We envisioned a model where customers could access commonly used computer applications over the web, much like cloud-based Software as a Service (SaaS) today. At the time, floppy disks and CDs were still the dominant methods of software distribution.
Our idea was ahead of its time. The infrastructure for cloud delivery wasn’t quite there, and more importantly, users couldn’t wrap their heads around the idea of renting software instead of owning it. Today, that concept is everywhere—think Adobe Creative Cloud, Microsoft 365, even QuickBooks Online. What was once radical is now standard practice.
Our challenge back then wasn’t the idea itself, but timing. Market conditions, consumer readiness, and the lack of reliable infrastructure doomed the project. Investors weren’t ready, and neither was the average user.
But today, things are different. With auto-billing, cloud computing, and customer expectations that are aligned with ongoing subscriptions, transitioning to a subscription-based model is easier than ever.
So, the big question is this: Can you turn your product or service into a subscription?
Here are a few ideas to explore:
Software and Digital Tools: If you sell software, consider moving to a SaaS model. Think monthly fees instead of one-time licenses.
Educational Content: If you offer courses, consider creating a membership site where users pay a monthly fee to access a growing library of content.
Services: If you offer a service, can you bundle your offerings into a recurring maintenance or retainer plan? Think of house cleaning, IT support, or even legal consultations.
Physical Products: Subscription boxes are wildly popular—from snacks to pet supplies to skincare products. If your product is consumable or needs regular replacement, this might be your path.
Coaching and Consulting: Instead of billing hourly, create ongoing packages with regular check-ins, access to a resource library, and support.
Transitioning to a subscription model doesn’t mean you have to abandon your original product. Often, it simply means repositioning it. For example, rather than selling your online course as a one-time $300 fee, you might offer access for $30/month, with ongoing updates and community support.
It’s also worth noting that subscriptions create a relationship. They give you permission to communicate with customers regularly, learn more about their evolving needs, and deliver ongoing value. That continuous contact strengthens your brand and increases the likelihood of referrals, upsells, and customer loyalty.
Of course, it’s not just about revenue—it’s about value. To make a subscription model work, you have to consistently deliver value that justifies the recurring cost. But if you can do that, the benefits are enormous: predictable cash flow, better customer retention, and the freedom to invest in growth with more confidence.
So, what does this mean for your business? It might be time to rethink your pricing model and ask yourself:
Are you getting paid enough for the effort it takes to earn a customer?
