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From
Services to Subscriptions
Mike Jenkins, Founder CEO, J6 Labs
Mike Jenkins
Founder CEO
J6 Labs Revenue Models:
B2C, B2B2C, B2B - Ecommerce Products
and Services, Advertising/Sponsorship,
Licensing, Subscriptions
Services
the action of helping or
doing work for someone
Subscription
an arrangement to receive
something… regularly by
paying in advance
Why?
Audience
● Convenience
● Cost Savings
● Predictability (Budget)
Provider
● Predictable revenue stream
● Offers more frequent
touchpoint with clients, Upsell
● Better planning of production
or infrastructure growth
● Blocks Competition
● B2B Services - Proposal Loop
Monthly
Recurring
Revenue
(MRR)
Examples
Buy a Movie
Rent a Movie
Download a Movie
Subscription
Multiple Subscriptions
70% of U.S. households have at least one
media subscription.
… And the average American subscriber
watches 3.4 services. For each one, they
pay an average $8.53 per month
Buy an App
Free with In App Purchase
In-App Subscriptions / Bundling
Buy an App
Free with in-App Purchase
App Bundling
App Subscription
Enterprise → 3000 miles each month, up to 4 car swaps → $1,499 Per Month.
“26 Best”
As of June 30, 2019, Peloton has sold
approximately 577,000 Connected Fitness
Products and counts 1.4 million members
who've downloaded the Peloton app
Peloton went public on Sept. 26 with a
guide price of $29 per share, giving it a
valuation of about $8 billion
Challenges
Audience → Subscription Fatigue
Business → CPA / Retention +
Look at Every Offering and
challenge current models
Lodging / Hospitality
Expand loyalty programs to include set number of
nights per month at set (predictable) price
Automotive Services….
Food and Drink
Development Services
From →
Proposal, Re-Proposal,
Project, Proposal, Project
(Start / Stop)
“Staff Augmentation”
To →
Subscription for Set # of
Hours, Set # of Team
Members
“My Dev Plus”
Marketing Services
From →
SEM Management
SEO Optimization
$5000 per month
To →
“My Marketing Plus”
Monthly…..
SEM Spend Optimization
Monthly Audit
Reporting / Analytics
Competitive Audit
Product Sales
From →
Sell the Product Alone
To →
Bundle with Service…
Free with Service Plan….
Strategy / Business Development
From →
Proposal, Re-Proposal,
Project, Proposal, Project
(Start / Stop)
To →
Monthly Retainer
Subscription….
“My Strategist”
Q&A
mike@j6labs.com

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Transitioning Your Business Model - From Services To Subscriptions: Presented by Mike Jenkins, Founder & CEO of J6 Labs

Editor's Notes

  1. Prime / Stat subsription ownershp
  2. Prime / Stat subsription ownershp
  3. Prime / Stat subsription ownershp
  4. Prime / Stat subsription ownershp
  5. Decline audience
  6. Enterprise → 3000 miles each month, up to 4 car swaps → $1,499 Per Month. But it’s not just rental car services that are trialing the idea of subscribing to your car like a smartphone. Porsche, Mercedes-Benz, BMW, Audi, Jaguar, Volvo, and Cadillac all have slightly different pilot programs in the works.
  7. Zuora CEO Tien Tzuo came up with “Fish Model” to describe impact of transition to a subscription business model Adobe switched from selling software to software subscriptions -- revenue and stock price dropped, but soon recovered and grew