Have you seen what Apple are doing?
Okay, so at this stage we all know that the Apple iTunes subscription service is one of the most profitable divisions of Apple. But their massive growth is hard to maintain.
So they’re looking around to see, well, how can we generate more revenues? How can we generate more profits in our business?
Now, you’re very used to walking into your phone shop and buying your Apple iPhone. But what Apple have recently done is they’ve now started selling iPhones as a subscription service, the very same way as your monthly iTunes.
They’re taking a physical product which we’re used to paying for in full when we acquire it, and they’ve turned it into a membership subscription, monthly recurring revenues. This is not really a new revelation.
Apple going in this direction is a huge shift though.
Netflix have been doing it. Microsoft have been doing it, Adobe have been doing it. So many people have been moving this monthly membership recurring model.
But what we’re seeing now is that model is evolving.
BMW are doing it. In some countries, you can now own a BMW on a monthly membership model where you can pick up different cars each month if you want.
My question for you is, this trend and movement towards monthly membership recurring revenues, how can you apply it in your business?
Xero was one of the fastest growing companies in the accountancy world, now valued colossal, over 10 billion valuation. Xero have opened the door to a software as a service monthly subscription model. Accountants can piggyback on this.
If you haven’t already looked at piggybacking, if you haven’t already looked at introducing monthly membership models in your business. I’d suggest, now is the time.