Subscription-based businesses seem to be exploding all over the marketplace with perhaps a new one sprouting up practically every where you look. For these companies, managing their finances, especially revenue, can be a nightmare, especially when they’re trying to add new services and process orders for hundreds, if not thousands or millions coming in. Revstream, a payment management software provider, says it has a solution to that problem, and it’s being unveiled today.
Called the Revstream Cloud, this application is specific to subscription-based companies like ShoeDazzle, BirchBox, BabbaBox, Wittlebee, and many others. What it says it’ll do was deliver what it calls “comprehensive revenue management capabilities”, along with a helpful interface that is accessible and useable by those non-financial savvy individuals, and a system that lowers costs and speeds up deployment.
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Subscription-based companies are those businesses who ship you product on a set schedule to your door. Similar to you receiving a newspaper or like Netflix, this model is in practically every category, from clothing to food to everything else.
Sure, this doesn’t sound like anything new (the model has been around for a while with those “product of the month clubs”), but startups seem to be leveraging technology to help bring awareness to a specific vertical and to previously unheard products is catching everyone’s eye.
For a company that provides revenue management and billing solutions for the enterprise, similar to what you might get with Marketo, moving into this field seemed only logical — after all, just because it operates on a subscription model doesn’t mean that it’s any less of an enterprise, right?
And having recently surpassed processing over $25 billion in revenue annually through its Enterprise Revenue Lifecycle Management Suite, the company might be doing something right and may have a solution to really help these businesses — there has to be a reason why Twitter, Facebook, Activision, and VMWare have partnered with Revstream, right?
The application is built on Force.com, Salesforce’s cloud application that allows for multiple architecture types to integrate with the enterprise system while also providing elastic scalability and a 99.9% Service-Level Agreement. Rajiv Chopra, the company’s CEO, says that with native understanding of key SaaS metrics as Monthly Recurring Revenue (MRR), Revstream Cloud will “eliminate licensing and implementation barriers to professional revenue recognition”. Furthermore, he says that it “uses a proven approach to data and business process integration, even recognizing new metrics including Daily Recurring Revenue (DRR).”
Companies have already adopted the Revstream Cloud app and the feedback, according to the company, has been positive. Right now, the company has approximately 12 paying customers (7 enterprise and 5 small- to medium-sized businesses) and is expecting to add more over the next few quarters with this release.
Those subscription-based businesses who wish to take advantage of this cloud application can do so starting today. The cost structure is based on revenue share and has a minimum monthly commitment.
Photo credit: Jayneandd / Flickr