The old economy was about selling products. The new economy is about selling access to products you used to sell. The next economy? Selling access to features of products you used to include for free.
The Subscription Mindset Shift
I want you to look at your product. Now look at every feature in that product. Each one of those features? That's a potential subscription. That's a potential "premium tier." That's money you're currently giving away for free like some kind of charity.
Let me share a framework we developed called SLICE:
Case Study: The Heated Seats Revolution
One of our automotive partners came to us with a problem: they were selling cars with heated seats included. Included! Just giving away that warm-bottom experience to anyone who bought the vehicle.
We helped them realize that the heating element was already in every seat (for manufacturing efficiency). All they needed to do was software-lock it and charge $18/month for "premium comfort features."
Revenue impact: $216/year × millions of vehicles = 🚀
Customer complaints: Significant
Customer churn: Zero (they already bought the car)
The Freemium Trap
Here's the beautiful thing about freemium: the free tier should be just functional enough that users invest time into your platform, but just painful enough that they eventually break down and pay.
We call this the "boiling frog" model:
By month 12, users have invested so much time/data/content into your platform that switching costs feel insurmountable. That's when you raise prices.
The Annual Commitment Discount (It's Not a Discount)
"Save 20% with annual billing!"
What customers hear: Discount!
What it actually is: A 12-month lock-in with early termination fees buried in paragraph 47 of the terms of service.
Pro tip: Make monthly billing 40% more expensive, then "discount" annual to only 20% more than your original price target. Customers feel smart. You win.
Looking Ahead
The subscription economy is still in its infancy. We're seeing early experiments in:
If it exists, it can be subscriptionized. If it can be subscriptionized, it should be.
This post is provided "as-is" with no warranty of ethical soundness. Terms subject to change without notice.