Subscription Models for Independent Creators

Fred Wilson has some smart things to say about subscription revenue models for businesses:

The emergence of the subscription model has made the software business better. In the old upfront license fee model, software companies would trade at 2-4x revenues. Now they trade at 6-8x revenues. That reflects the recurring, almost annuity nature of the subscription model.

Whilst he speculates that “software is not the only technology orientated business that utilises a subscription revenue model”, I think he glosses over a few businesses closer to my heart: namely independent writing, podcasting — and even music and movie making.

It is now easier than ever to start a subscription-based, creative project and have it support itself sustainably, as the subscriber count grows.