The Inception of Netflix’s Subscription Model, with Robbie Kellman Baxter, Best-Selling Author of The Forever Transaction

Subscriptions are the norm in 2023.

But it wasn’t always that way.

Behind every genius model is someone. Someone who made things the way they are by changing the way they were.

And in the case of the brilliant shift to a membership economy that Netflix led, and millions of others followed, the “someone” behind that move was our guest today, Robbie Kellman Baxter.

It was such an honor to dive into a personal conversation with Robbie, who is known for her #1 best-selling books The Forever Transaction” and “The Membership Economy”, but today we get to experience Robbie’s insights on not just subscriptions, but education, digital community, and even poetry.

You’re in for a treat.

From Poetic Verses to Subscription Expertise

In the late 1980s, Robbie’s parents encouraged her to pursue her passions and study whatever interested her.

They believed in her ability to forge a successful career, regardless of her chosen field.

With this support, Robbie embarked on a journey into the world of poetry...

As she entered the job market after college, she faced condescending questions during interviews, such as being asked if her passion for poetry would distract her from her work.

Despite such challenges, Robbie's dedication and impressive track record of achievements eventually landed her a job.

“People mostly you get your next job based on what you've done prior to that. Sometimes school is a signaling factor. And what I always said about poetry as a signaling factor is that I am, I have an ability to do a close read...to see patterns and draw conclusions.” --- Robbie Baxter

To thrive in the independent consulting realm, she understood the importance of establishing a personal brand and becoming an expert in a specific area.

It was during this phase that Robbie discovered her passion for subscriptions and membership models, which she has been actively involved in for over two decades.

“If you want to be a successful independent in this world, you have to have a brand and you have to be an expert on something and be known for something. Eventually I sort of found my way into subscriptions and membership about 22 years ago. And it's been a really fun journey.” --- Robbie Baxter

Today, Robbie's expertise lies in the realm of subscriptions, where her skills as a writer and researcher come to the fore.

Robbie’s Journey

Robbie shared her experience of working at three different tech companies after graduating from business school.

In retrospect, these companies operated under recurring revenue models, similar to today's SaaS companies.

When faced with a layoff, her immediate focus was on financial stability to support her mortgage and family.

Initially, she was open to any work that could provide income. However, she realized the need to specialize and become an expert in a specific area.

“Now that I'm more comfortable that I can make a living as a contractor, consultant, where am I going to focus? I need a focus. I need to be an expert on something.” --Robbie Baxter

The turning point came when she began working with Netflix as an independent consultant.

Witnessing Netflix's relentless dedication to customer retention and its profound impact on all aspects of the business, she fell in love with the subscription approach.

Other companies, such as SurveyMonkey and Intuit soon recognized her association with Netflix and sought her guidance to become the "Netflix" of various industries.

Navigating the Gap Between Specialized Degrees and Transferable Skills --- Yes, we even discussed her unique education journey.

Robbie believesshared that obtaining a degree no longer guarantees job opportunities due to the oversaturation of graduates and the varied interpretations of what a degree signifies.

“It's become harder for people to get jobs just because they have a degree, not because of the specificity of the name of their concentration or their major, but because there's so many of them. It doesn't necessarily mean that you're hardworking or good at anything...First, a degree is not a degree, it's not a monolithic thing.ot monolithic” --- Robbie Baxter

She argues the value of a degree should be assessed more comprehensively...

She views college as a package of benefits, each unique to the school, major, and extracurricular activities.

As Robbie said,

“The experience of college or university is a bundle of benefits... And so, you have to choose what bundle of benefits you want.”

Drawing on personal experiences, Robbie emphasizes the importance of adaptability and a broader skill set.

While acknowledging the benefits of pre-professional paths, Robbie encourages students to value a more well-rounded education.

We hope you enjoyed this more personal look into Robbie’s journey --- you can catch her on other podcasts dissecting her best-selling books, so be sure to check out the links below and her books in the bio!

—-

Meet Robbie!

She helps companies leverage subscription pricing, digital communities, and freemium models to build deeper relationships with customers. Over the past 21 years, she has worked with over 100 organizations in over 20 industries like the National Basketball Association, Hagerty, The Wall Street Journal, Microsoft, and Ingram Micro.

As a keynote speaker, she has presented globally at major conferences, association meetings, trade shows, and elite universities, as well as to private audiences at many of the world's most well-known companies. She hosts the podcast, "Subscription Stories," where she sits down with business leaders to discuss how they're using subscription pricing and membership models to redefine the biggest industries and generate predictable recurring revenue. She has also developed and taught nine video courses for LinkedIn Learning on business topics ranging from innovation to customer success and membership.

Her first book, "The Membership Economy: Find Your Superusers, Master the Forever Transaction & Build Recurring Revenue," anticipated and defined the massive transformation from ownership to membership and the rise of subscription pricing. It was named a top 10 marketing book of all time by Book Authority.

Her second book, "The Forever Transaction," takes readers through every step of the subscription business process – from initial start-up or testing of a new model to scaling the operation for long-term growth and sustainability.

Prior to launching Peninsula Strategies, she was a strategy consultant at Booz-Allen & Hamilton, a New York City Urban Fellow, and a Silicon Valley product marketer. She received her M.B.A. from the Stanford Graduate School of Business and graduated with honors from Harvard College.