Subscription based C2B services - lessons for VRM

Report on CNET about a successful "C2B aggregation" service that charges subscription fees in this Ad funded age.

Consumer Reports, a monthly, refuses to publish ads, which are the primary source of revenue for most magazines, yet it makes a healthy profit. And it not only charges for access to most of its Web site, it has three million paying subscribers online--up about 60 percent in the last 18 months--which experts say may be the largest number in the industry.

When we lived in the US we used it, as it was an instant guide to what to get among all those unfamiliar brands. In the UK we have a similar publication, Which?, which also has an online version and charges subscription with an almost identical business model (and i suspect most countries do).

In looking at examples of existing "Web 1.0" VRM plays, I was fascinated with Which as it has been charging subs for 10 years now and (so far) seems to have survived the blitz of Comparison Sites, CrowdSource sites etc.

It is a Social Media play, and so very "Web 2.0" in nature - analysis of products is done by a small team of testers (paid by Which?), and the huge user base then comments, gives views etc. Polls of used car reliability for example, are very useful.

From a VRM system design point of view I think there are a number of useful takeaways:

- You have to pay to join - this cost of entry removes the economics for low level spammers, scammers etc
- As it is a private Social Net, it is more trusted - people use their own names, and by and large others trust the opinions given
- As it is paid for by its users, it carries no Ads - so is perceived as independentl and thus more trusted.
- Its an indication of what C2B plays people will pay subscription money for, and to an extent how much ($26 pa for the US version)

It goes without saying that it makes money from Day 1 as well....never a bad idea in a sea of Ad funded competitors