Companies transitioning to a subscription model may face several challenges. Firstly, there could be a significant initial drop in revenue as the transition from a one-time purchase model to a recurring revenue model often results in lower short-term income. Secondly, there could be an increase in expenses, particularly in the areas of customer acquisition and retention. Thirdly, companies may need to invest heavily in technology and infrastructure to support the subscription model. Lastly, there could be resistance from customers who are used to the traditional purchasing model and may not see the value in a subscription model.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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