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Subscription business model

Charging repeatedly for continued access. Predictable revenue, and specific rules.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

A subscription charges on a recurring basis for ongoing access to a product or service.

Why it matters

It converts one-off sales into recurring revenue, which is worth substantially more per pound and makes planning possible.

What it looks like in practice

The economics turn on churn and on payment failure. Dunning — retrying failed cards and prompting for updates — recovers a large share of involuntary cancellations.\n\nThe DMCC Act introduced specific consumer subscription rules on pre-contract information, reminders and easy exit.

What to watch out for

Making cancellation hard. It is now an enforcement risk as well as a reputational one, and it does not improve retention — it delays it and produces chargebacks.

Where to get proper advice

Business Companion and the CMA guidance on subscription traps. Your billing platform for dunning.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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