What is the best way to start your own Online Subscription Business in 2022 |
Leigh Metcalf, the founder of the Atlanta-based sewing company, Topstitch, was looking for ways to create an online community of stitchers. When the pandemic hit and the demand to come up with a new method to run her business was much more important.
The Answer?
An online community. She built an online stitching group for seamstresses who sew using technology, and her online subscription company is booming - so much so that it's her only attention right now!
There's a lot of people talking about different ways to build companies online. Many talk about creating an online class on Skillshare and dropshipping on Amazon, or flipping merchandise.
While each of them may be useful in the business world, the one which is gaining the most attention is an online subscription and a bit of community! In this piece we'll discuss everything you need to know if you're wondering how you can start your own online subscription company.
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This piece...
1. What is an online subscription service?
2. Why start an online business for subscriptions?
2.1. Revenue recurring
2.2. Scale
2.3. Relationships with customers over the long-term
2.4. The effect of the network
2.5. Predictable growth
3. How to start an online subscription company in five steps
3.1. Refine your niche
3.2. Choose your monetization model & platform
3.4. Deliver value
3.5. Evaluate and adjust
What is an online-based subscription company?
A subscription-based online business is a product such as a service or space for members to are charged for access to regularly. Online subscription businesses usually either sell access to a digital product or service, for example, an online class or software OR to a digital community.
The subscriptions on the internet are part of the larger market for subscriptions, which is booming. If you've ever signed up for a monthly shave club, vegetable delivery, or wine subscription, you've used a subscription business.
Certain businesses are making a connection between online and physical products, like ArtSnacks Mix which provides regular art materials via mail but also offers access to an online community, which offers workshops, art lessons as well as other services.
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How do I begin an online subscription company?
Revenue recurring
Without a doubt one of the main benefits to an online subscription business for solopreneurs as well as multimillion-dollar businesses alike is the possibility of increasing revenue that comes from recurring subscriptions.
There was a time that you could purchase software like Microsoft Office in a box from the computer store, and have access to that for the life of your laptop. Nowadays, Microsoft, like many other businesses, is shifting towards a subscription-based model. It means that you pay less up front however they will earn greater from customers over their life time - due to their recurring income.
In a less granular way, many solopreneurs are also thriving by launching an online subscription company. We have the examples we have on the Stories of Awesome.
Scale
The second huge advantage to the online subscription model is that it provides enormous scale as an owner of a business. It is possible to create something one time and it can reach thousands or even hundreds of thousands of people. For example, if you are creating content in an online community, it won't matter much to you if five people who consume it or hundreds.
The content is created your content once.
The same applies to any online class. There is no need for recreating a course again and again. The selling of a course using the basis of an online subscription means adding recurring payments for access.
Long-term customer relationships
Another huge benefit to an online subscription service is that it puts the business in a position to build long-term relations with members or customers.
In contrast to a transactional, traditional company, an online subscription business is one that creates the foundation for a long-lasting relationship. It could be by joining of an online community, or by sending periodic newsletters, or by reaching them with social media.
The importance of a long-term client or member relationship for an organization is unimaginable. It provides you with a loyal crowd to experiment with new products on, get feedback from and even upsell to.
The network effect
What we find valuable in community forums is what we like to refer to as the effect of networks. It is essentially, the network effect means that the value you provide to a community member is not only one-way.
Actually, when you create a community-based subscription business, members deliver value to each other as equally. They'll communicate with each others, assist each other in need, and develop lasting friendships. This all adds to the value of your community, even with no extra work.
Predictable growth
Last, but definitely not last, launching an online subscription business will provide you with certain and steady growth. In essence, as long as the churn of your members isn't overly large, you'll be sure that any increase you make the following month will be built on the shoulders of what you've accomplished this month. In the end, you can also predict what your subscription business will be a year from now.
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How to begin an online business of subscriptions in just 5 easy steps
Refine your niche
If you have an idea of the areas you'd like to use your imagination first step towards creating an online subscription company which actually succeeds is to clarify your niche.
When it comes to building communities on the internet, we provide the process we refer to as"Community Design(tm) to aid you do this. One of the initial steps in Community Design(tm) involves trying to determine members who are ideal for your group. It is a person who has a problem to solve which you could help.
We generally suggest speaking to potential ideal members of your subscription service for instance, which in our case is an online group. Utilize these conversations to identify pain points that members have, and clear areas where they would be willing to pay to have some help.
When you've finished these interviews, you can make what we refer to as the Large Purpose Statement. The format is as follows:
Choose your monetization model & platform
Next step, when you have identified who your ideal member is and the issue they face and the issue they face, is to select the business model that can actually help them. In part, the choice of the business model you select will be based upon the issue that they have. If you are in the business of teaching, which is required and you want to incorporate an online platform for courses. If you've got the software to solve your problem, you're probably building something altogether unique.
Since we think a lot about online communities, the platform which we designed is centered on community subscriptions and offers different ways to monetize. There is the option of adding online courses, paid subgroups as well as events and much more. Additionally, you can group all of this together.
Choose an model of monetization that will allow you to serve your ideal member while you build your business.
When you begin, don't forget the KISS concept - which means, be simple... You know.
Find your clients
Next step is to figure out what you can do get new customers. There are lots of methods to accomplish this, therefore we will not talk about a one-size-fits-all approach. The trick is to find out the best approach for your ideal members.
However, at minimum, you should contact the individuals you interviewed and inform them that you are creating an online subscription service.
Then, use your tools available to locate other customers. It could be something like:
- Social media
- Email Lists
- Custom-designed invitations
- Webinars
- Ads
- Free trials
Deliver value
The process of bringing people into the room is just one half of the challenge. KEEPING them in is the other part. That's why, once you've got some paying customers of your subscription online business it is essential to begin providing worth.
The good news is when you've put in the research to find your ideal client You can simply provide them with what they want. This is that's why the Community Design(tm) process makes your business more efficient, since you're not trying to provide worth to different kinds of people that all have different needs.
Beware about the value of quantity. Many people begin an online subscription company and think that customers will be satisfied if they have an avalanche of content. Creators become exhausted in trying to make it available.
Instead, concentrate on the process your customers want to undergo and give them only what they need to make that take place.
Assess and adapt
Finally, make sure you constantly take stock of the things that are working, and then adjust. It is in your best interests to be lean as an entrepreneur in the subscription industry, and take the initiative to make adjustments that assist you in serving your customers more effectively.
Conclusion
Now that we've gone through the steps to begin an online business that offers subscriptions The only remaining thing is getting started! It's true this is the hardest aspect. There are many who dream of it however, they suffer from an anxiety and analysis, causing them to think so much enough that they never take the initial step.
Be a better person than that. Just get started! If you don't have all the answers, you'll be learning as you go. It's part of the charm of the adventure.
Do you have the right tools to launch your own subscription-based business?