I highly recommend subscribing to this list put out by Scott Galloway at L2. Scott writes about consumer products in the context of consumer trends.
In this particular email he talks about subscription/recurring revenue models and how they command a higher price to sales value in the marketplace.
That is the case for many brands but not all.
I don’t think it is necessarily the recurring revenue model, but if you go one step back, it is that these high price/sales darlings have figured how to reduce friction while delivering a great product/service.
Everyone lacks time so anything you can do to reduce friction is probably a winner, but as long as you do not compromise on a great product/service offering.
But not always. I specifically create some friction in my pet company for getting access to free stuff because I find it gives me a much higher quality prospect.
What is that friction? If you want a free product, you have to add it to cart and checkout, giving me all of your contact information, versus just requiring an email.
But here on my website, I only require an email to get access to my free downloads. There is a definite reduction in my open and click rates for email campaigns to those people that end up on my list via a free download. But I am OK with that and would rather make it easier to get my content out to as many people as possible.
I post what I see and do in consumer products. But I am just one person with my own perspective. I want your opinion and observations from your point of view. Please comment below so I and others can learn. Thank you!