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THOUGHTS ON RUNNING A SUCCESSFUL SUBSCRIPTION BUSINESS

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September 2008

September 26, 2008

Calling All Zuora Fanz

Annette Giambroniby Annette Giambroni


Z-Team Day with Habitat for HumanityZ-Marketing here.. thought I would take a second, steal the blog away from the execs and tell you about some of the great stuff we have been doing here at Zuora. Couldn't get ahold of your favorite Z-Team member last week? That was probably because we were out cleaning up the neighborhood with our favorite local charity Habitat for Humanity. We helped build 8 homes, learned a lot about the benefits of dry wall, hammered a lot of nails (and sadly my thumb a few times) and topped the day off with group dinner in town. I apparently make a darn fine roofer, although I think I'll be keeping my day job. Care to join us on the next one? If so, check out the careers page, we're hiring!



September 11, 2008

iTunes

K. V. Raoby K. V. Rao


When I read this article - it was like déjà vu. A few weeks ago we blogged about the iPhone 3G and how AT&T is using subscriptions to make more money on the new, cheaper iPhone. And now we’re seeing a theme with Apple and subscriptions for our favorite music service.


The writer in the article expounds very eloquently on what we talk about most around here: The case for subscription services. And if I were to bet anything, it seems just a matter of time before this inexorable shift towards subscription services sweeps iTunes under its path...


It’s about not owning a few songs, but access to a virtually unlimited library of songs,

It is about kicking the tires, without getting locked in to a commitment,

It is about exploration - without worrying about having to pay for disappointment,

It is about growth - at a reasonable price,

In other words, it is about the customer.


This week Apple announced a new, improved iPod nano. Now it’s time to announce a new, improved iTunes model with subscriptions at the core.



September 08, 2008

Veggies-as-a-Service

K. V. Raoby K. V. Rao


Of all the products-as-services concepts that I’ve come across, there is one in particular that I just really love -- vegetables-as-a-service. With an emphasis on organic produce, and a push for buying from local farms, and the rising obesity rates in the US, it’s no wonder local farmers are becoming innovative in how they think about attracting customers. Rather than looking at their fruits and vegetables as products they sell, they've refashioned themselves as service providers of access to fresh, local, organic food, in a way that anyone can subscribe to. Here are a few of my favorites:


Planet OrganicsPlanet Organics delivers fresh, organic, locally grown produce (for Bay Area residents) right to your door every week, or bi-weekly, your preference. You can choose what produce you want and cancel your service at anytime. There are similar services popping up in most other major cities including Off The Vine in Atlanta, Matt’s Organics in Tucson, and Door to Door Organics has built a business that serves eight states. If that doesn’t speak to the popularity of this movement, I don’t know what does.


One Roast VegetableAnd here’s one that isn’t a veggie delivery service but a neat twist on subscribing to veggies -- OneRoastVegetable.com lets you subscribe to a monthly “veggie club” where subscribers have access to fully illustrated, step-by-step veggie-centered recipes, online classes, and articles from experts including chefs, doctors, dieticians, and farmers.


We’re looking for more examples of industries that are selling their products as services to blog about, so let us know what you’re currently subscribing to. You may see it here on the Z-blog.



September 03, 2008

PayPal's Scott Thompson Joins Zuora's Board

Tien Tzuoby Tien Tzuo


Some of our regular readers may have seen the news this morning -- we're very excited here at Zuora to announce today the newest member of our Board of Directors — Scott Thompson, President of PayPal.


Scott ThompsonWe met Scott a few months ago, and clicked with him immediately as he really gets what we’re doing here at Zuora. Scott also has tremendous experience in the payment industry, having helped build the technology behind PayPal, THE global leader in fast, secure online payments. We believe payments and billing go hand-in-hand, and are excited that Scott will bring his expertise as part of our expanded board.


You can check out our full announcement here. We think having Scott on our board is huge as it signifies the convergence of the emerging online billing industry with the well-established online payments industry. What do you think?


This is the first of some big announcements we're gearing up to make in the next couple of months, all of which we'll post to the Z-blog, so thanks for following our happenings here.



September 02, 2008

Tien’s Top Five - Innovative Subscription Businesses

Tien Tzuoby Tien Tzuo


We’ve talked about Netflix, Zipcar, and of course salesforce.com and WebEx – the big ones. But here are five subscription businesses you may not have heard of that I think are really cool. They span different industries and serve both businesses and consumers.This is a great example of the different industries that use a subscription model.


1. NetJets – These guys were actually around before Zipcar, have a *somewhat* similar concept, and have evolved into one of the coolest concepts for upscale and corporate flyers that I’ve ever seen. You choose how many hours you (or your company) plan to fly and subscribe to a share of the jet fleet from there. Granted, it’s a pricey subscription for partial ownership, but can be quite cost effective for enterprises that have hefty monthly travel costs.


2. Going with the jet theme, Jet Repair Anywhere -- This is neat Web-based company that links owners and operators of corporatejets with maintenance facilities that can fix their planes. I love seeing technical services offered as subscriptions. This one seems especially smart to me as more and more companies opt for private air transportation due to airlines cutting back on flights. They need dependable services to keep travel consistent and safe.


3. Shoeboxed.com – This is a receipt organization service based on a subscription model – pretty unique and useful for both consumers and small businesses. For a monthly fee, subscribers mail in receipts in Shoeboxed's prepaid business reply envelopes (like Netfilx). When received, they are scanned and uploaded into an online account for a complete receipt archive.Every account also includes a Shoeboxed email address to capture online receipts. Expenses can then be separated by category and exported to popular accounting apps.


4. Subscribe to yoga, Gaiam Yoga Club – Don’t have time to go to yoga class? Want some variety in your at-home workout? Don’t want other people to see your sad version of triangle pose? With this neat online service, for $5 a month you can get a personally tailored yoga program, and stream different yoga videos and audiocasts online.


5. While we’re focusing on health, how about some vitamins-as-a-service – Let’s face it, it’s expensive to stay healthy and hard to remember to get new vitamins every month. This service solves both of those problems by delivering high quality vitamins to subscribers every month, at a discounted rate.


This is just a sampling of the cool companies that have come across my radar. We love hearing about new, unique subscription services out there. Stay tuned for a blog dedicated to veggies-as-a-service. And tell us what you think of these and other subscription services you like to use.