Subscription based businesses are one of the most popular business models for tech companies.
But, as of yet, there haven’t been many blockchain startups which have also used this business model.
This has meant that there have been few options for crypto investors who want exposure to subscription businesses.
One interesting new Initial Coin Offering (ICO) which provides exactly that is SRCOIN.
In this article we will look at why subscription based businesses can be so attractive and what exactly the SRCOIN Initial Coin Offering (ICO) is.
Why Use A Subscription Based Model?
#1 Recurring Revenue
One of the biggest advantages of subscription based businesses is recurring revenue. Subscription businesses earn revenue from the same customer month after month.
#2 Good Profit Margins
Profit margins for subscription based businesses are often superior to those for businesses with one off sales. The reason is that the customer can be charged a relatively low price on a monthly basis, but on aggregate the profit margins are actually very high. Because the customer is only paying a small amount each month there is less pushback than there might otherwise be.
#3 Lower Customer Acquisition Costs
Costs to acquire customers can be lower overall. This is because you can potentially need fewer customers in order to make the same amount of money as a business with one off sales. For example, if a business has 10,000 customers each pay $10 a month, then at the end of the year they will have made $10 x 10000 x 12 = $1,20,0000. If a business was making one off sales of $10 then in order to earn the same level of revenue over the course of a year they would have to acquire 120,000 customers.
#4 Simplifed business planning
Because revenues are relatively predictable business planning can be easier. Determining how much to spend on marketing and which capital investments are often simpler in a subscription based business.
More About The SRCOIN ICO
SCRCOIN is an ERC20 token built on the Ethereum blockchain. SRCOIN is being priced at 1 ETH is equal to 700,000 SRCOIN with bonuses for participation in the pre ICO rounds. The main crowdsale is set to start on March 1st 2018 and end 31st March 2018.
SRCOIN website: https://www.srcoin.info
SRCOIN telegram group: https://t.me/SRCOIN_EN
SRCOIN Twitter: https://twitter.com/srcoin_ico