3 Models for Recurring Revenue

3. Models for Recurring Revenue Recurring revenue models come in three basic flavors: %24 %24 %%24 %24 Subscription Fixed payment for service for a specific period of time- a day, a month, a year. Usage Charges per use or per unit of service. Subscription plus Usage Combines fixed subscription for service level with "overage" billed as extra charges. MAKE THESE MODELS UNIQUE In picking the right revenue model, businesses should align with what works for their customers. THE SUBSCRIPTION MODEL VS. THE USAGE MODEL ADVANTAGES TO... THE SUBSCRIPTION MODEL THE USAGE MODEL SELLERS Generates continuous, ll predictable revenue Scales revenue to the cost of service Promotes customer retention Incremental increase in revenue Collects customer information iyie Reduces barriers to adoption Generates revenue from automatic renewals "Foot in the door" strategy BUYERS Predictable cost over Scales cost subscription term Pay only for what is used Spreads cost over time Reduces barrier to buy Buy a plan that fits Try before you buy THE SUBSCRIPTION PLUS USAGE MODEL Combination plans (subscription plus usage) charge a subscription fee for service with any overage billed as extra charges. More broadly, a combination plan can be any mix of recurring charged services with usage services. ADVANTAGES TO... SELLERS BUYERS Earn extra revenue from Allows extra usage. heavy users. Eliminates having to buy a bigger subscription. Recoup higher expenses. Monetize added features Flexibility to change when needed or services. ENABLING RECURRING REVENUE IN THE ENTERPRISE What a Buyer Should Seek for Success A solution that supports... All Revenue Models (Recurring and One-time) Usage, subscription, combination, other Legacy System Integration CRM, ERP, service delivery, etc. 2 Multiple Payment Types Single interface Language and Currencies Global Testing and Experimenting New billing models, pricing, bundles, promotions Card Payment Processors Multiple and many Evolving New Models Test and validate Deployment Options Traditional SaaS, dedicated cloud, or full appliance Native Channel Management Security State-of-the-art security standards No workarounds Promotions and Discounts Speed to Market Rapid deployment for new market expansion Upsell, cross sell, anytime DISCOUNT Scalability As transactions grow into multi-millions aría Headquarters Picking the Right Recurring Revenue Model Aria Systems, Inc. 274 Brannan Street, Suite 602 aria San Francisco, CA 94107 Phone: 415-852-7200 Fax: 415-852-7251 Sales Toll Free: 1-877-755-2370 Follow us on Twitter @AriaSystemlnc Tot al revenue is Copyright © 2013, Aria Systems, Inc. All rights reserved. Aria Systems and the Aria logo are trademarks or registered trademarks of Aria Systems, Inc. www.ariasystems.com y fing+ You Tube