Channel, Software and Industry Partner Subscription Models
Business Models
A perfect business model can be a powerful ally in the battle against your competitors and in hitting your target market. This will help you to figure out a bulletproof list to validate a business model with whomever you would potentially partner with and meet their business objectives.
Most professional services you encounter today are either invoiced on a billable-hours basis or are too pricey!The various models are
- *Channel partner model
- *Software partner model
- *Industry partner model
Researching a good business opportunity a plague that confuses you to decide on which subscription model to choose from. The major features are:
Strong customer base
Most companies generate just 15 to 25 percent of their revenues from brand new customers. Customer service business forms the core of a strong subscription business model. Building a strong customer base is necessary. Features should include the following:
- *24/7 support service.
- *Monitoring customer usage.
- *Adoption to migrate churn risk
Pricing – Cost effective
An ideal price point provides you with the following features:
- *Free trials
- *Virtual coupons
- *Early-bird offers
- *Partner promotions
Revenue Boosts and Hitting the Right Target Market
Generating financial statements forms the base for every business. Manual spreadsheets are definitely not the perfect solution. Features include the following:
- *Can handle a vast number of order transactions
- *Increase in revenue
- *Hits the target market without fail
Minimizing write-offs
Consumers either pay you cash or credit upfront. Else they will have an alternate credit line for the same. Either ways, these two approaches do not give a significant value.Features should include the following:
- *Involves a host of payment gateways to assess and implement
- *Ensures recurring payments
- *Automates cash collection
Billings on a Huge Scale
A billing system must be able to ensure easy and accurate bill calculation. Features include:
- *Forms the main branding collateral
- *Error free bill generation
- *Easy calculation including different billing dates
B2B & B2C companies
Whether online or mobile, signing up for a particular subscription model should be possible across these multiple channels. Features:
- *Automated workflows across multiple channels whether online or mobile
- *Supports customer required strategies (Multi-channel support)
Channel Partner Model – Secure your channel business
Channel partner business models simply evolved over time. When trying to figure out which business model to choose from, it is worthwhile to consider channel companies that help customers boost their efficiency and meet their business objectives. The features include the following:
- *Well-defined value proposition
- *Creation of a customer – core sales phenomenon
- *Identification of benchmark competitors
- *Identifying success factors
- *Analysing the different success and risk factors
- *Defining motivation elements and drivers
- *Defining a framework
- *Building a partner strategy
- *Deploying a marketing strategy
- *Defining ways to ensure success
The Benefits are:
- *Good for small or medium sized companies.
- *Advisable for short-term projects with clear and well-documented requirements
- *Involves a predefined delivery period and fixed budget
- *This model does not require close supervision of the client
To keep in mind limitations while choosing the Channel mode of subscription:
- *Target has to be met within the pre-defined timeframe, else the business opportunity can be revoked
- *Not a lifetime offer
- *Not industry specific
Software Partner Model – The Time and Material Model
During the software development process, the projects demand a certain amount of flexibility from all involved parties.
The steps involved are:
- *Analysis of implementation specifics
- *Pricing distribution analysis
- *Prioritizing the tasks involved for development projects
- *Developing the functioning system.
- *Optimizing time and costs
Benefits are as follows:
- *Perfect for large companies
- *Good for long-term projects that cannot predict the end product at its initial stages
- *Flexible
- *Cost effective especially in the long run
- *Low risk for both parties
- *Significant client’s control over the project
- *Beneficial even after the target is met
Keeping in mind the limitations being:
- *No strictly defined time limits
- *No pre-defined project completion schedule
- *Client’s involvement demands time and human resources
Industry Partner Model
The client has full management over the project and team. It can manage resources and plan the whole work scope at their own idea and choice, by providing maximum benefit for themselves.
The Benefits include:
- *Suits long-term projects where the requirements are unclear and scope changes frequently
- *Configuration and maintenance are all headaches borne by the head company
- *Fully predictable budget
- *Workload and scope are not fixed but yet predictable costs
- *Complete control over the selection, motivation and management of dedicated team members who have proficient know-how of the client’s expectations and objectives
The Limitations would be:
- *Terms and Conditions would be applied on customization demands
- *Client must take active role in communications and negotiation
- *Client must invest a lot of time into the overall management
