There are different types of subscription model businesses that apply to various products and businesses.
Following are the three major subscription types:
Physical Subscriptions
Physical subscriptions, also known as product subscriptions, is a subscription model in which the subscribers receive a physical product on a recurring basis. This subscription type mostly applies to consumer products that are required regularly. It saves consumers from the hassles of going to a supermarket every time.
Examples: Toothpaste, Bathing Soap, Facial creams, etc.
Digital Subscriptions
Digital subscriptions mean providing access to digital content, product, services, or platforms to customers on a subscription basis. In this subscription model, customers will get to consume content, use a software or a platform online. This is commonly used in online entertainment, education, or media industries.
Examples: Adobe (Software), Audible (Audiobooks)
Membership Subscriptions
The membership subscription business model refers to a subscription model in which the customer pays a recurring fee for being a member of the organization or community. This is mostly applicable to communities, organizations, coaching centers, yoga classes, etc. Members gain access to special benefits, services, content, or privileges that non-members don’t.
Examples: Amazon Prime (Online Streaming) and LinkedIn Premium (Professional Networking).