The Ideal Customer Problem: Stop Paying for Subscriptions You Don’t Need

How to Avoid Wasting Money on Unused Services

When I was in college, I attended a weekend hackathon at Stanford that both our schools co-hosted. I pitched an idea for a “news video generator,” which received lukewarm interest. After that, I helped develop a browser plugin that showed alternative sources for the articles you were reading. Had we focused on that product since then, maybe we could have saved America—but we didn’t win the grant. This was back in 2015, and, well, you know what’s happened since.

While I was there, I learned about the concept of an “ideal customer.” I’d assumed it meant someone who loves your product. Wrong! An ideal customer is someone who pays for your product but rarely uses it. (To be clear: this wasn’t official curriculum but something a Stanford student explained to me.)

Since then, I’ve done my best to avoid becoming that ideal customer.

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There are few ways to lose money that are worse than having a subscription you’re no longer using.¹ The Wall Street Journal published an article Monday about a new class of users that are taking full advantage of our new monthly subscription system by subscribing for a few months at a time and then pausing their subscription until some later date.

Gone are the days of multi-year contracts and $100 cable bills. With everything on a monthly subscription you can toggle online, it’s time to cut that monthly drain. Here’s how I make sure I get real value for every dollar I spend on subscriptions.

1. Turn off Auto-Renew Immediately

As soon as I subscribe to something, I turn off auto-renew. For instance, my brother visited this weekend, and we wanted to play Call of Duty online. I didn’t have a PlayStation Online subscription, so I bought a one-month pass and immediately turned off auto-renew in settings.

2. Opt for Annual Plans When Possible

For services we use consistently—like Paramount+ and Peacock in our house—I look for annual plan deals, buy them, and turn off auto-renew. Currently, we have a full year of Peacock with ads for $20, and we got Paramount+ through Verizon along with a year of Netflix for free. By default, auto-renew was enabled, but I made sure to disable it.

3. Stop Signing Multi-Year Agreements

For years, the only way to get reasonable rates on cable or cell service was through a two-year contract. But today, many providers offer month-to-month options. Next time your contract ends, consider switching if there’s no significant service difference—especially if it saves you from being locked in.

These strategies keep my subscriptions under control, so I know I’m getting value for every dollar leaving my account.

1. Betting on the Mizzou Tigers is the worst way to lose money