Crypto doesn’t have a subscription model.
The reason is very simple, crypto does not function like banks and credit cards. It might in the future, but it does not now. Even if it did, it could just reintroduce the same shady practices business have now with SaaS models.
There is opportunity for something even better, and we should explore those things because we are creative, forward thinking people.
The deeper problem is that implementations of current subscription models are highly centralized, you have to trust some party to drain your funds regularly, and they are lost in a sea of transactions, and each time you don’t authorize these payments, they are automatic.
(I believe) subscription models are at odds with the spirit of crypto.
Crypto is about authorization and control of your money, not about signing your money over to somebody else to drain your account.
Most people are getting used to subscription services, and big businesses are using this model to make record breaking revenues (Netflix, HBO, Software services — Trello, Github etc). People are literally numbed out to having their money drained
Free trials are pretty much known to bait you in on some offer it’s hard to say no to just to put you on the gerbil drip feed where your money drains out into some corporation’s pockets. It’s like a new shady sort of subscription service tax.
The Crypto Solution
TaaSS — Token as a Subscription Service. It’s like SaaS — Software as a Service business model
How it Works
- A user discovers a service they love, let’s call it CryptoFlix (Decentralized Netflix)
- They click to subscribe or login and the app checks if they have CFlix tokens staked
- Since the user doesn’t have tokens staked he either buys into them with crypto or fiat right there or purchases them on a secondary market or exchange
- The user can choose different tiers of memebership or simply subscribe depending on the dapp
- Once the user chooses their subscription, they stake the tokens. The terminology “staking” isn’t important here, it could be anything, but underneath the hood the user is delegating or staking their CFlix tokens to CryptoFlix to subscribe
- Users simply log in with their wallet each time they want to watch movies and CFlix knows they have tokens staked
- When the user might want to stop using the service they simply unstake
- The user can now sell the tokens to a friend or sell on a secondary market to a dumb guy named Joey who’s willing to pay 3x cuz he’s a dumbass. I’m going to tell you honestly, I don’t really give a fuck who you sell them to, Marty.
Who Could Use It
Any site that requires memberships (gym, club, news site, blogs, video).
Any SaaS business.
TaaSS Model Notes
This would be a highly experimental revenue model but let’s look at the upside.
A TaaSS business wouldn’t have to deal too much in international payments since anybody in the world could buy tokens with crypto. Huge international upside
A TaaSS customer has more freedom and hopefully will feel more comfortable making larger purchases up front, since the tokens could be sold at any moment. So selling huger tiers and fancier subscription offers like “pro” and “gold” will be super easy, especially for happy customers of quality services.
A TaaSS customer when buying tokens could actually make money off the appreciating value of the tokens as the company gains traction. Try doing that with your Netflix subscription!
TaaSS customers are kind of like investors and will likely be more actively using the service than unappreciative jerks who usually use apps the first time and complain and make the app developer’s life a living hell.
TaaSS customers could share in profits much like gambling dividends from the site’s token sales or referrals.
Tokens could have multiple purposes in the applications, perks, rewards etc, based on how much is staked.
The wallet that holds the token could also be an authentication method, not requiring personal information. Users wouldn’t have a need for an identity since the membership is done through their wallet.
A TaaSS customer would truly own their membership since it would be tied to their wallet keys.
A TaaSS business would have a lower probability of sharing subscriptions with friends and family because people aren’t willing to share their private keys.
A TaaSS business will have purchasing data for all of their customers since their wallet is their means of login and that is public on the blockchain. This is not true for SaaS businesses that process payments with credit cards. They have to find shady back alleys to buy the data from, and overall violate user’s rights.
A TaaSS customer is not exposed to “float” which is when you subscribe to a service and forget about it and still have to pay.
Subscription prices could fluctuate based on secondary market prices of the token. Because exchange prices could be higher at a later date, people who speculate on the tokens without using the service could profit long term, and also benefit the company with more capital (essentially an investment). Also a customer might be more willing to buy in early to enjoy a cheaper subscription, since it may be more expensive in the future.
If the users aren’t paying every month, where does the revenue come from?
Answers (for now):
New users who come in will either buy the tokens directly from the service which is direct revenue or they buy them from secondary markets, which in turn will create some buy pressure on secondary markets.
Inflation could also be used to some degree, the service business could off load some of their supply onto the secondary markets to generate some quick “cash hits” (a play on the word ‘crack hit’).
Pay to Play (on top of TaaSS)
People can still pay for stuff and would be more likely to do so in the service because their wallet is already connected, not always true on freemium or other services.
There is so much, so much more, brothers and sisters.