Mackenzie Thompson on Why Subscription Based Businesses Are The Future

TheMacLyf with Ferrari 488

Why subscription based businesses are also the safer option for predictability and scale

It's all about the journey ”

— Mackenzie Thompson

SYDNEY, NEW SOUTH WALES, AUSTRALIA, January 29, 2022 /EINPresswire.com/ -- Mackenzie Thompson, founder of TheMacLyf Pty Ltd, has recently shifted his entire company pricing structure to only accommodate subscription based pricing. His reasoning behind this? Mackenzie believes that the future of all successful companies depends on its ability to quickly adapt this new pricing structure as fast as every large company has in recent years.

Amazon, Netflix, Adobe and Chewy just to name a few, are some of the biggest companies in the world today and have a predictable model on which they can identify their

growth and revenue. With a predictable and sustainable income flow, the companies only really have to focus on two main factors, Mackenzie believes, “churn and customer experience”.

Mackenzie believes the easiest subscription based product to sell in today’s rapidly evolving world, isn’t actually products, which can be mass manufactured within days by global powerhouses like Amazon, but it is instead media and community. Netflix does a great job of this, however “TheMacLyf, (Mackenzie Thompson)”, believes even smaller companies can very quickly increase their revenue by creating paid communities such as secret Facebook groups, discord channels and “inner circles”.

The thing with subscription based business models are that once you have an extremely large customer base, even the most micro changes to price won’t make a difference in terms of customer churn but can significantly increase profits across the board. An example of this being Netflix recently in January 2022 raising their subscription price by a few dollars USD per month. Whilst this resulted in barely any drop-off to the existing customer base, Netflix just added millions if not hundreds of millions of dollars in extra profit to their company overnight, as mentioned in 7news.com.au.

With the world and technology changing at an alarmingly fast rate, it can be challenging for traditional brick and mortar based businesses to keep up and adapt where needed.