This white paper is written for people who are considering starting, selling, investing or buying a business that operates a subscription service.
A snippet of questions:
- Why have the company chosen a subscription model and not a pay-as-you-go model?
- Have the company experimented with changing the prices and/or renewal period of its subscription product to test the optimal price point?
- What acquiring bank is the company using?
- What happens when the company is unable to charge a customer (due to card not working, insufficient funds, etc.)?
- Does the company have any chargebacks on its credit card subscription?
- What are the most common types of customer complaints the company receives?
- What’s the churn rate?
- Are there any win-back attempts in the unsubscription process?
... and many more relevant questions.
Since I started investing in companies in 2007 it’s become abundantly clear to me how important it is to perform your due diligence before any signatures are put on contracts. And that starts with asking questions.
Sometimes it’s easy to forget to ask about even the most obvious things which in worst-case scenarios can lead to some bad decision making. Other times, there exist industry-specific questions you didn’t even know to ask.
The purpose of this white paper is to cover the key questions that apply to this specific niche of business. I hope it comes to great use.