A subscription invoice is a bill routinely sent to active subscribers of a digital or product-related service. Depending on the type of subscription, customers can be required to pay in weekly, monthly, or yearly increments.
Unlike a one-time payment, bills sent in routine intervals need additional fields to keep the customer informed accordingly. These include the date of the next payment, the billing interval (for example, “every 90 days”), and the date on which the subscription will end (if applicable).
Types of Subscriptions
The consumer population is only becoming further entrenched in online products and services in the modern economy, with subscription-based offerings sitting at the forefront. According to a study conducted by McKinsey & Company, a staggering forty-six percent (46%) of those surveyed had at least one (1) subscription to a streaming service. Furthermore, the study posted that fifteen percent (15%) of respondents subscribed to a service that provides regular delivery of products. What does this all mean? Subscription business models cast a wide net over the internet’s users and are significant structures to follow for businesses that apply. Subscriptions can include purely digital offerings, tangible, in-person services, and product deliveries. Examples of digital services include online newspapers, music/video streaming services, video game networks, parking passes, cable (internet + TV), phone plans, and many other recreational and utility-type services. Apart from digital-based services, product subscriptions are also very common. These can come in the form of:
- Scheduled food delivery
- “Loot” boxes (assortment of random toys and merchandise relating to a topic of interest to the subscriber)
- Print magazines