Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • June 2023 (Revised August 2023)
  • Background Note
  • HBS Case Collection

Subscription Models: Recurring Revenues for Lasting Growth

By: Elie Ofek and Amy Konary
  • Format:Print
  • | Language:English
  • | Pages:25
ShareBar

Abstract

This note offers a comprehensive exposition to subscription revenue models and aims to explain their recent rise. It covers the advantages to firms of employing a subscription-based approach to monetization (as opposed to “one-off” upfront payment), as well as the benefits to consumers from the arrangement. The note further provides a typology of the different subscription models used in practice, and outlines the various considerations involved in designing an effective subscription service. Also covered are the key performance indicators (KPIs) and metrics companies should use in order to track the performance of the subscription design they have elected to follow. Lastly, common challenges firms may face when implementing a subscription model are highlighted. The note is replete with examples that illustrate the concepts and ideas presented.

Keywords

Business Model; Revenue; Product Design

Citation

Ofek, Elie, and Amy Konary. "Subscription Models: Recurring Revenues for Lasting Growth." Harvard Business School Background Note 523-113, June 2023. (Revised August 2023.)
  • Educators
  • Purchase

About The Author

Elie Ofek

Marketing
→More Publications

Related Work

    • June 2023 (Revised August 2023)
    • Faculty Research

    Subscription Models: Recurring Revenues for Lasting Growth

    By: Elie Ofek and Amy Konary
Related Work
  • Subscription Models: Recurring Revenues for Lasting Growth By: Elie Ofek and Amy Konary
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.