Subscription Model
A subscription model is a business strategy where customers pay a recurring fee at regular intervals (e.g., monthly or annually) to access a product or service, rather than making a one-time purchase. It is widely used in software (SaaS), media, and e-commerce to generate predictable revenue and build long-term customer relationships. This model often includes features like tiered pricing, automatic renewals, and usage-based billing.
Developers should learn about subscription models when building applications that require recurring revenue streams, such as SaaS platforms, streaming services, or membership sites. Understanding this concept is crucial for implementing features like billing cycles, payment gateways, and customer retention strategies, as it directly impacts business sustainability and user engagement in modern digital products.