LEO Premium is something with enormous potential. With all that is taking place, we can really build this into something that could change things greatly.
It is evident the model that is being used is X. Twitter Blue makes a lot of sense to follow since we are dealing with a digital platform. However, instead of following Elon Musk, perhaps it best to look at what Amazon is doing instead.
This company has a service called Amazon Prime. Like X, it is a subscription based service. The main difference is that one is incentivized while the other appears to be forced.
For this reason, Leo should look towards Amazon as the model to follow.
Let us dig into what is taking place and why this is the path to follow.
Most have heard of Amazon Prime, at least in the United States and Canada. What most do not realize is all the services that are offered along with discounts provides.
The list is too long for this article but a few key pieces are:
Under each category, there are an assortment of options. The list, when extended, is rather large.
Ultimately, it makes the $15 a month for the service an easy choice for those who use Amazon products and services.
What is interesting is the deal gets better.
Amazon purchased this company a little over a year ago. Now it is part of the Prime membership package.
The company announced Wednesday that Prime members will be able to sign up for One Medical at a rate of $9 per month, or $99 a year, versus the standard cost of $199 annually, or $16.59 a month. Prime members can add up to five additional memberships on the same plan at a rate of $6 per person, Amazon said.
As we can see, by having Amazon Prime, the membership fee on the medical plan is reduced by $7.50 per month. This is half the cost of the Prime membership.
Can you see what is going on here?
Amazon uses Prime as the centerpiece for all that it is doing.
The goal here is to offer a lot of options that are worth $15 a month to people. This means continually expanding what is included so people have a tough time refusing.
Naturally, each person has a different hot button. For some, it might be the ability to get same day delivery. Others want Amazon Video. Some want the music while Whole Foods discounts could tickle a few.
The point is that, to Amazon, it doesn't matter what the hot button is. What is important it that it is hit by one of the offerings.
Is anyone suffering by not having Prime? Personally, I am one who rarely orders off Amazon so Prime for shipping holds no appeal. At the same time I could care less about the Video or Music offering they provide.
Hence, Amazon had a tough sell to me since I am not much of a customer for them.
However, as evidenced by the success of the company, there are a lot who do find value in this membership.
If Leo Premium is going to succeed long term, it is going to have to seek a lot of different buttons. This means expanding the offerings to include more than just threads.
Like Amazon, Leo should make it a centerpiece of much of what it does. Over time, with expansion, discounts and services can be offered to those who have Premium membership. Skipping it will not cause one to "lose out" but the benefits should make it easy for users to want to sign up.
Subscriptions are a proven business model. Within the realm of Web3, we can see how this alters the equation a great deal.
The money paid by Prime users goes into the revenues of the company, something that ultimately benefits the shareholders. This is classic Web 2.0 structuring.
With Web3, we are able to reverse who benefits. Since the Premium membership fees are used to buy LEO and HIVE off the market, then place it in a permanent liquidity pool, holders of those assets benefit.
Since most users have these in their wallets, providing buy demand provides market support for the price. Over time, this could be of enormous benefit.
Of course, the idea is to keep growing this amount that is being bought each month, having a greater impact on the overall system.
For Leo to succeed, it is best to start thinking like a major technology company. They show how different business components can be leveraged for even greater gain. When it comes to network effects, they are experts.
It is why they millions of people paying them each month for subscriptions. The value far outweighs the cost.
This is also something that puts the market capitalization on steroids. When you line up companies with subscriptions versus those without, the numbers are starling.
Leo can take advantage of this also. Everyone hold LEO wants price to go up. This is a great way to accomplish that over the next couple years.
Follow the leader. When it comes to this realm, there are few bigger, or who do it better, than Amazon.
