After-posting

At Alunta we have decided to createa a dictionary for words and important terms related to running a subcription busniess. You are now reading about “After-posting”.



What is After-posting?

“After-posting” – A term that might sound like something you do on social media after a wild night out, but actually it’s a business term. So don’t go looking for embarrassing pictures just yet! Now, if you’ve ever had a subscription to something – say, a magazine, a streaming service, or even a monthly shipment of your favorite cookies – you’ve likely encountered after-posting. But what in the name of all that is chocolate-chip goodness is it? Well, friends, after-posting is a term used in the subscription business model. It refers to the process of charging a customer after they’ve received a product or service. Imagine you’re at a restaurant – they don’t charge you before they’ve served you your meal, right? That would be preposterous! You’d be paying for something you haven’t even tasted yet. It’s the same concept with after-posting. You get to enjoy your product or service first, then the bill arrives. It’s like a ‘try before you buy’ without the buying part because you’ve already committed to the subscription. Now, you might think, “Why would a business do this? Aren’t they just opening themselves up to the risk of people not paying?” Well, you’ve got a point there, Sherlock! But, it’s a calculated risk. Subscriptions create a sense of trust between the business and the customer. The business trusts the customer to honor their commitment and pay up when it’s time, while the customer trusts the business to deliver what they’ve promised. It’s all very heartwarming, like a Hallmark movie but with invoices. After-posting is also a bit like the cool uncle of the business world. It’s flexible, understanding, and doesn’t mind if you’re a few days late with the payment. Unlike the strict auntie pre-payment that demands money upfront before you’ve even seen what you’re getting. So next time you’re enjoying your latest Netflix binge or flipping through that magazine you subscribe to, spare a thought for the term after-posting. It’s the unsung hero, the behind-the-scenes worker that keeps your subscriptions running smoothly. And remember, it’s not all about posting embarrassing pictures on social media after a wild night out – although, let’s be honest, that’s fun too! But, that’s a story for another day. For now, let’s raise a glass to after-posting, the star of the subscription world. Cheers, mate!

Frequent questions about After-posting

After-posting is vital in subscription businesses for several reasons. Firstly, it allows companies to accurately record and manage their revenue. By recognizing revenue after a service has been delivered, businesses comply with revenue recognition principles. Secondly, it provides an accurate picture of a company's financial health, as it only includes revenue from completed transactions. Lastly, it helps businesses forecast future revenue based on past data, which aids in making strategic decisions.

After-posting in a subscription business model helps maintain transparent and healthy customer relationships. It ensures that customers are only charged for services they have received, thereby strengthening their trust in the company. Moreover, it allows companies to provide customers with accurate invoices and statements, which reduces disputes and enhances customer satisfaction. Additionally, it enables companies to identify and rectify any service delivery issues, thereby improving the overall customer experience.

Related topics in the subscription dictionary

Check out other topics in our subscription dictionary below. We've gathered the ones we find most relevant in relation to after-posting.

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