Subscription Model for Professionals - Ed Kless

Branch Out - A Podcast from Connection Builders

Professional firms typically bill by the hour, as any accountant or lawyer knows all too well. But, as you'll discover in this episode, today's guest argues strongly for implementing a subscription-based model.

Meta-consultant and business iconoclast, Ed Kless is the Senior Director of Partner Development and Strategy for Sage in North America and a Senior Fellow at the VeraSage Institute, a think tank dedicated to the elimination of the billable hour. He is also an author, speaker, and co-host of The Soul of Enterprise, a business podcast designed to champion the insight that wealth is created by intellectual capital.

As you'll learn from our conversation, Ed has noticed a significant shift towards the subscription-based business model, where you have control over how you price the relationship you have with your customer. In this candid and thought-provoking discussion, Ed shares his expertise and advice when it comes to subscription-based pricing models for professional knowledge firms and best practices for firms looking to transition to this approach. We also touch on the difference between a client and a customer, the notion of serial transformations, and why Ed believes that pricing is an art, not a science. This episode will challenge the way you think about pricing and encourage you to consider the value proposition of a subscription-based model.

Key Points From This Episode:

• Ed shares some insight into his role at Sage, as well as his 'why.'
• A look at why he believes that professional firms sell knowledge, not service.
• Why the business model that best serves this transfer or access to knowledge is not the hour.
• An understanding of the difference between clients and customers.
• The value proposition of a subscription-based model and how it serves customers better.
• Defining subscription-based pricing and what Ed calls 'serial transformations.'
• The Disney concept of 'plussing' and the mindset shift that comes with subscription models.
• Ed debunks some common misconceptions about subscription models.
• What Ed means when he says that subscriptions should be frictionless.
• Ed's belief that pricing is an art, not a science, and a look at his 'ensurance' model.
• Learnings from one of the biggest subscription success stories that Ed has seen.
• Where to start educating yourself, including Ed's recommended reads.

Ed Kless
Ed Kless on LinkedIn
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The Soul of Enterprise (TSOE)
Sage
VeraSage Institute
TSOE Episode 296: Subscription Pricing at Summit CPA — Jody Grunden
Managing the Professional Service Firm
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