What is “Hybrid models” ?
In subscription billing, hybrid models are a combination of two or more subscription billing models. It allows businesses to provide their customers with a wider range of pricing options and can help to balance the revenue stream by providing a mix of recurring and usage-based billing.
For example, a business may offer a recurring subscription with additional usage-based charges, or a pay-as-you-go model with a tiered pricing structure based on usage.
Hybrid models can be beneficial for businesses because they offer flexibility and can help to attract a wider range of customers. However, they can also be more complex to manage than single billing models, as businesses must consider how the different billing models will work together and how they will communicate these options to their customers.
Overall, hybrid models can be a powerful tool for businesses looking to offer more flexible billing options and increase their revenue streams. By combining different subscription billing models, businesses can cater to a wider range of customers and provide them with the pricing options that best meet their needs.
Cases
5 examples of businesses that use hybrid subscription billing models:
- Netflix: The popular streaming service offers a recurring monthly subscription fee, but also allows users to rent or buy movies and TV shows on a pay-per-view basis.
- Amazon Prime: Amazon Prime is a hybrid subscription billing model that offers a recurring annual subscription fee, but also provides access to exclusive discounts and perks for individual products and services.
- Dropbox: Dropbox offers a recurring monthly subscription fee for its cloud storage services, but also provides the option for users to pay for additional storage on a per-gigabyte basis.
- Peloton: Peloton offers a recurring monthly subscription fee for its digital fitness platform, which includes live and on-demand classes. However, the company also sells high-end fitness equipment on a one-time purchase basis.
- Adobe Creative Cloud: Adobe Creative Cloud offers a recurring monthly subscription fee for access to its suite of creative software tools, but also provides the option for users to purchase individual products on a one-time basis.