Everything you purchase — from transportation to entertainment to groceries — will soon come with a monthly plan.

Everything you purchase — from transportation to entertainment to groceries — will soon come with a monthly plan.

After scrolling headlines in the New York Times, you head into the kitchen and open today’s Blue Apron box to prepare a shrimp risotto before turning on Netflix for an episode of Comedians in Cars Getting Coffee. You may not have noticed, but you’re now fully enmeshed in the subscription model.

The subscription model is a booming field. In recent years, this market has grown by more than 100% a year, increasing from $57 million in sales in 2011 to $2.6 billion in 2016.

Tien Tzuo, who earned his MBA from Stanford Graduate School of Business in 1998, says the subscription model is the way of the future. In 2008, after nearly a decade at Salesforce, Tzuo founded Zuora, a software company built to aid organizations shifting to this model. In his recent book, Subscribed: Why the Subscription Model Will Be Your Company’s Future — and What to Do About It, Tzuo aims to change how executives think about their products and organizational structure in the subscription economy. “If you’re not shifting to this business model now,” Tzuo writes, “chances are that in a few years you might not have any business left to shift.”

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Tim Redondo

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