The subscription business model is a business model where a customer pays a subscription price to have access to a product or service. Supscriptions are typically paid by a unit, e.g. by user, server, .. 

Learn how to

Create a Subscription Revenue Stream

Create a Subscription Revenue Stream by clicking the <+Add Revenue Stream> button and selecting the revenue model "Subscriptions (Customer Contract)" from the dropdown Revenue Stream Type. Lean-Case creates the Revenue Stream with a Subscription Revenue Template for the first Customer Type. Enter the description for your Subscription Revenue Stream in the Widget Header (e.g. Software Subscription).

 

Enter Assumptions for your first Customer Type

Enter assumptions for the Customer Type in the Widget Template:

  • Customer Type Description (e.g. Startup Plan)
  • Billing Frequency at which the customer's invoice is created (Monthly, Quarterly or Yearly)
  • Payment Terms to know the time of invoice payment (cash-flow) (how many days after invoice creation customer must pay)
  • Number of Customers at beginning to enter the number of customers which already exist at the beginning of the time period
  • Monthly Average Revenue which a customer generates (e.g. a Startup Plan customer generates revenues of €100 per Month)
  • Price Change upon Renewal to define the increase or decrease of price upon contract renewal (e.g. if a customer is billed Monthly his contract is renewing on a monthly basis - if a customer is billed Quartely his contract is renewing on a quartely basis and the average revenue is increased)

Save assumptions by clicking the <Save Stream> button.

By default, Lean-Case calculates revenues for one customer which is billed on a monthly basis. Let's assume the Average Monthly Revenue is € 100, then this results in monthly subscription revenues of $100.

 

Data Groups provide maximum flexibility for capturing assumptions with varying values over time. 

  • Data Series Group combines an input field with a Table Icon  to enter varying values for a data series. 
  • Data Edit Group combines three input fields (one of which being a Data Serie Group) in one column with an Edit-Mode Switch    for automatic and manual editing.  
Via the  Table Icon   , you activate the Data Capture Widget to create, flexibly edit or upload a series of values.

 

Related Categories 

Follow the links below to dive into more detail on how to create a Service Revenue Stream: