Many question the value of [LEO](https://inleo.io/@leoglossary/leoglossary-leo) Premium.


Here is the bottom line: if you hold any [Leo Power](https://inleo.io/@leoglossary/leoglossary-leo-power) at all, you should be excited about Leo Premium.


Keep this in mind as you read this article.


By the way, this has nothing to do with the features, what is offered, or how it compares to the non-premium usage.


Instead, it is completely focused upon value.


 https://i.imgur.com/adiY8QT.png 
[Source](https://scv-weinstein.blogspot.com/2020/05/the-value-of-investing-in-customer.html)


## Premium Equals Value


It is safe to say that most who hold LEO would like to see a higher price.  This is something that, over the long-term, should be expected.  If things are being done to push value to the platform, then that should be reflected in the [market](https://inleo.io/@leoglossary/leoglossary-market) price.


Of course, in the short-term, [markets](https://inleo.io/@leoglossary/leoglossary-market) can do some quirky things.  However, in the end, value does tend to drive the overall [trend](https://inleo.io/@leoglossary/leoglossary-trend-finance) although there will be fluctuations along with way.


What does any of this have to do with Leo Premium?


The answer lies in the value of subscriptions.  When we are looking at models such as this, [valuations](https://inleo.io/@leoglossary/leoglossary-valuation) are remarkably different.


Here is a [video](https://inleo.io/@leoglossary/leoglossary-video) that explains what I am referring to.


<iframe width="1280" height="720" src="https://www.youtube.com/embed/MP5R8jqbDb8" title="The $14 Trillion Valuations Of Digital Subscription Economy - 8x Higher Than The Rest" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>


The TL:DR (or TL:DW) of this is the Subscription Economy.


Right in the beginning it talks about two companies with the same top line.  If each is pulling in $100 million, but one is a subscription based company, it will be valued at 8 times more than the one that has to [sell](https://inleo.io/@leoglossary/leoglossary-sell) each month.


This is why everyone who is holding Leo Power should be excited.


Having this feature offers the potential for the market to value Leo at a much higher price.  Since there is [recurring revenue](https://inleo.io/@leoglossary/leoglossary-recurring-revenues) each month, this can feed the market in a way non-subscription entities do not.


## Web2 On Steroids


Of course, the video is discussing life in the [Web 2.0](https://inleo.io/@leoglossary/leoglossary-web-2-0) world.  This would include the likes of [Netflix](https://inleo.io/@leoglossary/leoglossary-netflix), [Amazon](https://inleo.io/@leoglossary/leoglossary-amazon-company), [Hulu](https://inleo.io/@leoglossary/leoglossary-hulu-streaming-service), and other services.  It was actually a model that [telecommunication](https://inleo.io/@leoglossary/leoglossary-telecommunications) companies also use.


When was the last time they had to chase you to pay your [Internet](https://inleo.io/@leoglossary/leoglossary-internet) bill?


With Leo, we are seeing the formation of the subscription economy.  There is one twist.  We are not dealing with revenues in the traditional sense.  This is not going to feed a companies bottom line.


Instead, the [revenue](https://inleo.io/@leoglossary/leoglossary-revenue) is actually going to [purchase](https://inleo.io/@leoglossary/purchase) the [token](https://inleo.io/@leoglossary/leoglossary-token) (along with HIVE) from the market and placing it permanently in a [liquidity](https://inleo.io/@leoglossary/leoglossary-liquidity) pool.  Now we have another feature to the [valuation](https://inleo.io/@leoglossary/leoglossary-valuation) model.


What kind of multiple does this bring to the table as compared to traditional, non-subscription companies.


Naturally, Leo isn't a [company]( https://inleo.io/@leoglossary/leoglossary-company-business) so we are not exactly dealing apples-to-apples here.  We are taking a few liberties, most of which come as a result of the difference between web2 and web3.


Either way, since the token is value capture, it is designed to be fed the value generated by the platform.  This is compounded by the fact the revenue actually goes to purchase it also.


These are things that are easy to overlook.  Understanding, however, the dynamics that are in play means people can take advantage of this situation before things become obvious.  This is where having some foresight can really pay off.


## The End of One Off


The problem we face within the [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem-digital) in general is everything is a one off.  That is something that has to change. 


Anything that is recurrent is tapping into a more powerful model.  This means we are likely to see a great deal more out of each unit, whether it is activity, money, or development.  Leo Premium is designed to keep growing. 


To start, ideally, more people are subscribing each month.  This is no guaranteed but has to be the goal.  This is done by adding more to the equation, to make Leo Premium too good to pass up.


At the same time, each 500 HBD [triggers](https://inleo.io/@leoglossary/leoglossary-trigger-point) a buy.  Hence, each time that happens, another batch of LEO-HIVE enter the liquidity pool.  The value is permanently locked in, growing along with the value of the tokens.


Here is where we can potentially see exponentials.  It also could have a huge impact upon the [market price](https://inleo.io/@leoglossary/leoglossary-market-price) of LEO over time.  


Subscription models can generate enormous value.   This is something that, if focused upon, can really enhance the value of LEO over time.


Anyone with it in their [wallet](https://inleo.io/@leoglossary/leoglossary-wallet) should be happy about that.

___

<center>[What is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive)</center>

Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450le/premium-membership-really-helps-the-value-of-leo)