BizSugar.com › Finance › Recurring Monthly Revenue Types - Seed & Startup Capital

So why is everyone trying to jump aboard the subscription revenue model? Two main reasons.

First, a company with this revenue model doesn’t see its revenues reset to zero every month. Instead it enters every new month with guaranteed sales.
Second, it costs a lot more to win a new customer than it does to simply keep existing ones satisfied enough to remain. So a business model where you only have to win each customer once and then concentrate on keeping them happy is going to be a lot easier to run than one where you are starting with a blank customer list every thirty days.