In this model, a single fixed fee for a product or service is charged, regardless of actual usage or time restrictions on it. The user benefits from a simple cost structure while the company benefits from a constant revenue stream.
How they do it: The Swiss Federal Railways (SBB) offer a membership service called ”General-Abonnement”. With the GA, customers can travel in Switzerland on all means of transportation in the Swiss public transport network.
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How they do it: Already in 2000, Verizon introduced nationwide, flat-rate pricing options for consumers and businesses. Today, Verizon customers can subscribe to an unlimited plan (voice, data and text) for as little as $40 per month.
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How they do it: LinkedIn limits the use for regular users. They still have access to a wide range of functions but are limited in certain factors. E.g. the possibility to search other profiles is capped for free users. Premium users who pay an annual or monthly fee however can search for other profiles without limit.
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How they do it: With Porsche Passport, announced in 2018, customers do not purchase a car, but obtain access to a vehicle via the monthly subscription. It consists of an all-access subscription for $2,000 to $3,000 per month and includes a variety of car models (e.g. two-door and four-door models), from which the customers may flexibly choose a model of their liking.
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How they do it: With the establishment of its music streaming service Apple Music, Apple enables customers to stream an unlimited amount of music for a fixed monthly fee.
Learn more about Apple iPod/iTunes →