Before starting , selling or investing in a Subscription Service

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Questions to ask before starting , selling or investing in a Subscription Service 116 due diligence questions. This white paper is a preview. Get the full white paper here: https://duediligencequestions.com/subscription-services.asp for 4,95 USD. Copyright notice This white paper and its content is copyright of DueDiligenceQuestions.com. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited. You may not, except with our express written permission, distribute or commercially exploit the content.

Top 10 questions

1. What problem is the product solving?
2. Is the company profitable?
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General

11. Why have the company chosen a subscription model and not a pay-as-you-go model?
12. Does it come naturally that the company has adopted a subscription model or does it feel forced?
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Basic numbers

17. How many active subscribers does the company have?
18. How many customers have unsubscribed in total?
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The Product

23. How unique is the product?

24. Is the company selling several products? If yes:
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The Product (if physical)

31. How does shipping work?
32. How do supply and manufacturing work?
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Customer Satisfaction

37. What is the Trustpilot rating and how many reviews are that based on?
38. What can the company do to increase customer satisfaction?
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Customer Care

43. What are the most common types of customer complaints the company receives?
44. What channels of support does the company provide (email, social media, phone etc.)?
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Marketing

48. Does the company do any intro offers? If yes:

49. How do they look like?
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Payment Service Provider

58. What Payment Service Provider is the company using?
59. What is the fee schedule for the Payment Service Provider?
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Acquiring Bank

63. What acquiring bank is the company using?
64. What are the transaction fees imposed by the acquiring bank?
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Customers

71. How would the company describe the typical customer?

72. Do the company aim for long-term customer relationships or short-term experiences?
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Chargebacks

79. Does the company have a problem with chargebacks?
80. Have any accounts or agreements ever been closed due to excesive chargebacks?
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Churn

89. What is the current churn per month?
90. What is the main reason for customers to unsubscribing?
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Refunds

97. How often does the company refund it's customers?

98. What are the main reasons for refunds?
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The Subscription

102. Have the company experimented with changing the prices and/or renewal period of its subscription product to test the optimal price point?
103. How can the subscription model be improved?
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Expansion to new markets

106. Is it easy for the company to enter new markets?
107. Why has the company kept back from entering new markets?
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Other questions

113. Are there any technical challenges that are hindering the company from growing?
114. If the company sells it's product and services in several countries, how is local VAT payment handled?
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