USE ONLY INFORMATION BELOW TO WRITE A PARAGRAPH HAVE 200 WORDS TO ANSWER THIS QUESTION, Discuss Information for The Subscription Model The Subscription Model Mobile payments continue to rise in popularity, and consumers are trending towards a more simple, hassle-free kind of shopping experience. These trends are leading towards explosive growth in subscription based services that consumers can easily set up, and then not worry about, knowing they will receive their product or service every month. Dollar Shave Club is one of those simple subscription services that made it much easier for men (and now women) to not worry about running out of razors, and save money. Add in some crazy, well messaged commercials with a hilarious spokesperson, and you have a brand who continues to double and even triple revenues annually. Why It Works: This business model provides an optimal balance of value to both the startup and the customer. It's simple and convenient for customers, and take a lot of thinking out of the purchasing process. Customers know they will receive their product every month around the same time, don't have to worry about reorders, and know they will get a set, flat rate that will stay within a budget. On the startup end, the value lies in being able to predict revenues through recurring sales, which is incredibly advantageous for a company's valuation. This enhances the sellability of the company, increases the attractiveness to potential VCs and buyers, and often leads to valuations up to 8 times that of similar businesses with little recurring revenue. Others Who Have Followed: We all know Netflix revolutionized the way we consume TV shows and movies with it's very affordable monthly subscription service. Spotify did the same thing for the way we consume music, by providing consumers the means to listen to virtually any song they'd like for a small monthly subscription. SkillShare, an edtech startup, initially started where consumers would buy educational content a la carte, but has pivoted to a monthly subscription model to access their content which has proved to work better for them. Of course there is also the subscription box trend that has reigned the past few years, like BirchBox, which provides samples of high end beauty products to consumers for a low monthly subscription