Commerce Glossary

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What is a Subscription Business Model?

sub - scrip - tion busi - ness mod - el
Is a business model that charges customers a recurring price at regular intervals of time (often monthly or annually) to access a product or a service. This takes place through subscriptions that allow access to the service or product. Pricing for this model can take various forms, from simple or flat-rate subscriptions, to tiered pricing, per-user (or per-seat) pricing, per-feature, or usage-based, or a combination of these. Freemium, premium, and free trials also are part of the mix as options. 

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