Tuesday, February 19, 2008

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Make money tips for bloggerSubscription Revenue
Any site that has recurring or frequently refreshed content may be a good candidate for a subscription revenue model. News sites fall into this category, with the Wall Street Journal and CNN offering some form of subscription service for their online content.

Business Model and Mechanics

Subscription-based services migrated from the offline world to the online world. The most common forms of subscriptions were originally used for newspapers or magazines. The end-user of the news or information service typically pays a weekly or monthly recurring service fee (subscription fee) to have full access to the publisher's content. The practical implementation of this model online may work as follows.

A publisher offers additional coverage, or premium content that is only available to subscribers. Under this model, the content is usually in a special password-protected area of the site. A new subscriber may gain access to the content by filling out an online form including (usually) credit card information for billing purposes. Once the credit card transaction has been authorized, the subscriber is emailed a unique and secure password permitting access to the subscription-only content. Typical subscription fees are in the range of $10 per month. For example, CNN charges $12.99 per month for its 'NewsPass,' which permits access to premium streaming video content on the site. The Wall Street Journal currently charges $6.95 per month for access to online content for those not already subscribed to the print edition.

A hybrid of the pure subscription model is simply to charge an increasing fee as access to higher level services increases. This model is common in online forums, where additional charges are levied to access certain forums, or users' signature lines are expanded at higher fee levels.

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