Just like your personal streaming services can get out of hand, your business can easily find itself bogged down with a multitude of subscriptions. These recurring expenses, often based on usage (think number of records, gigabytes consumed, etc.), can quickly inflate, leaving you with a hefty bill and a nagging feeling of being nickel-and-dimed.

Think about it: how many software subscriptions does your business have? Project management tools, CRM systems, cloud storage, marketing automation platforms, communication apps… the list goes on. Each one seems essential, yet their costs quietly add up, potentially draining your budget.

The 5 Subscription Rule

To combat this, consider implementing the "5 Subscription Rule." Aim to limit your business to no more than 5 essential software subscriptions. This encourages you to critically evaluate each service and prioritize those that truly deliver value.  Keep in mind you may need a few more than the rule, but evaluate each one carefully to make sure it's the best choice for your business.

Here's how to trim the excess:

1. Conduct a Subscription Audit: List every subscription, its cost, and its usage frequency.
2. Identify Redundancies: Do multiple services offer similar features?  Do you actually receive some services with an existing package (
   • Example: You receive Microsoft OneDrive with Office-365, but yet are paying for another web storage service such as Google Drive, etc.  So Consolidate where possible.
3. Bundle Services: Seek out vendors that offer a combination of services in a single package instead of relying on multiple vendors for individual needs. This can often lead to cost savings and simpler management.
   • Example:  You use Intuit QuickBooks for accounting and SalesForce + 8 different add-ons.  Instead, look at DrivenCRM which has a better QuickBooks integration and is live having 8 apps in one from a single vendor.
4. Prioritize Flat-Fee Pricing: Opt for vendors that offer predictable pricing instead of usage-based models.

The Perils of Usage-Based Pricing

Usage-based subscriptions can be deceptive. They seem affordable initially, but costs can skyrocket as your business grows. This unpredictability makes budgeting difficult and can lead to unpleasant surprises.

Example: Cloud Hosting

Imagine you need a cloud server. Amazon AWS offers powerful solutions, but they often charge by the minute for resources used. This means your bill fluctuates depending on your website traffic, data processing, and storage needs.

Alternatively, providers like RackSpace or Ionos might offer similar server capabilities for a fixed monthly fee. This provides predictability and allows you to accurately forecast your IT expenses.

Benefits of Streamlining Subscriptions

• Cost Savings: Reduce recurring expenses and free up capital for other investments.
• Improved Efficiency: Fewer tools mean less complexity and a more streamlined workflow.
• Reduced Security Risks: Managing fewer subscriptions minimizes potential vulnerabilities.
• Better Data Management: Consolidating services can centralize data and improve insights.

By proactively managing your subscriptions, you can regain control of your budget, improve efficiency, and foster a healthier bottom line. Take action today to trim unnecessary expenses and optimize your business for sustainable growth.