What is the best way to start your own Online Subscription Business in 2022 |
Leigh Metcalf, the founder of the sewing studio in Atlanta, Topstitch, was looking for a way to build a community of fellow stitchers. As the flu pandemic swept through the country and the demand to find a different way to run her business was much more important.
Her Answer?
An online community. She created an online stitching group for garment sewers using the internet, and now, her subscription service online has been growing rapidly - so much so that it's the sole focus now!
There's an abundance of individuals discussing different methods to create businesses online. Many talk about creating an online course up on Skillshare, dropshipping with Amazon and flipping products.
While each of them may have a place however, the model of online commerce that's really dominating is online subscriptions, and a bit of community! In this piece we'll discuss the things you should be aware of if you're thinking about how you can start an online subscription business.
If you're looking for more help in building your online community, come join OUR Mighty Community for free and meet other new and established community owners! We'd love to meet you. Register at no cost!
The post...
1. What is an online business that offers subscriptions?
2. Why start an online subscription business?
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 business of subscriptions in just 5 easy steps
3.1. Refine your niche
3.2. Choose your monetization model & platform
3.3. Locate your clients
3.4. Deliver value
3.5. Assess and adapt
What exactly is an online-based subscription company?
An online subscription company is an online product such as a service or space where members have to pay for access to on a regular basis. Businesses that offer subscriptions online typically offer access to a digital item or service, such as an online course or software OR to a community of digital users.
The online subscription business is a subsection of the wider market for subscriptions, which is booming. If you've ever signed up for an annual shave-club as well as a vegetable delivery service, or wine box, you've used a subscription business.
Certain businesses are making a connection between online and physical products, like ArtSnacks Mix which delivers regular art supplies by post, but it also provides access to an online community, which offers workshops, art lessons, etc.
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What is the reason to begin an online subscription company?
Revenue recurring
Without a doubt, the biggest draw to an online subscription business for solopreneurs and multimillion dollar companies alike is the increasing revenue that comes from recurring subscriptions.
There was a time that you could purchase programs like Microsoft Office in a box at the local computer shop, and then have access to it throughout the lifetime of your personal computer. Today, Microsoft, like many other businesses, is shifting towards a subscription-based model. It means that it costs less upfront however they will earn greater from customers over their lifetime - all thanks to recurring revenues.
In a less granular way there are many solopreneurs profiting from an online subscription business. You can read the examples we have in our Stories of Awesome.
Scale
Another major benefit of the online subscription model is the fact that it gives you enormous scale as an owner of a business. You can create something once and have it reach hundreds or thousands of individuals. For example, if you're creating content on an online community, it won't matter much to you whether there are five users who are using it or hundreds.
It is still possible to create the content once.
The same applies to an online course. It's not necessary to keep making a new course repeatedly. The selling of a course using an online subscription model requires a recurring fee for access.
Relationships with customers over the long-term
Another huge benefit to subscriptions online is the fact that it places you in a position to build long-term relationships with customers or members.
In contrast to a transactional, traditional company having an online subscription means that you are building a lasting connection. For instance, this could happen through membership to an online community, or by sending out a regular newsletter, or by reaching them with social media.
The importance of a long-term relationships with a member or customer to a business is incalculable. This gives you an enthusiastic audience to test new products on, get feedback from, and then upsell to.
The network effect
The benefit we can see in communities online is what we call the network effect. The network effect means that your contribution to the community member not only one-way.
Actually, when you launch a subscription-based community business, members deliver worth to one another as well. They will talk to each and help one another out, and build genuine friendships. The whole thing adds up to the worth of your community, even without doing any additional tasks.
Predictable growth
The last but certainly not last, launching your own online subscription service can give you an easy and consistent expansion. Basically, as long as your membership turnover isn't excessively significant, you're pretty certain that any increase you make in the next month will rest off of the work you've achieved this month. In the end, you can also predict what your subscription company will stand in a year's time.
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How to start an online subscription company in 5 steps
Refine your niche
If you've got an idea of the areas you'd like to use your creative power The first step to building an online subscription business that is actually successful is to clarify your niche.
If you are looking to build communities online, we offer the process we refer to as the process of Community Design(tm) to assist you do this. One of the initial steps in Community Design(tm) involves trying to identify members who are ideal for your community. Someone who has an issue and you are able to help.
We generally suggest speaking to potential ideal members of your subscription service, in our case an online community. Use these interviews to help determine the problems that members have, and clearly define areas where they'd be willing to pay for assistance.
When you've finished these interview, you will be able to create what is known as the Big Purpose Statement. This is what it looks like:
Choose your monetization model & platform
The next step, once you know who you want to be your ideal client and the problem that they face, is to choose the business model that can effectively help the person. The choice of the business model you select is going to rely somewhat on the issues you're trying to solve. If you are in the business of teaching, which you need to do and you want to incorporate an online platform for courses. If you have the software to solve the problem, then you're likely to be creating something completely distinct.
Because we are passionate about communities online, the system which we designed is focused on subscriptions to community groups and offers many ways to earn money. You can add paid subgroups, online courses, events, and more. You can also group all of this together.
Choose an monetization model that can assist you in serving your ideal member when you start your own business.
When you are beginning do not forget the KISS rule - that is, keep it simple... That's right.
Find your customers
The next step will be to decide how you are going to attract customers. There are a bunch of options to achieve this, so we won't talk about a one-size-fits-all approach. It is important to determine what will work for your ideal participants.
But at the very most, you could return to those whom you talked to and tell them that you're creating an online subscription service.
Use your tools available to locate potential clients. It could be something like:
- Social media
- Email list
- Custom-designed invitations
- Webinars
- Ads
- Free trials
Deliver value
Getting people in is part of the struggle. Insuring they stay is the other half. So, once you've got some paying customers for your online subscription business, you have to start providing the value.
There's good news, if you did the work to identify the ideal customer You can simply offer them what they want. This is the reason that's why using the Community Design(tm) method helps your company become more efficient, since you're not trying to provide worth to diverse people that all have different needs.
Do not think about the value of quantity. Too many people start an online subscription service and think that customers are satisfied when they offer an abundance of content. The creators become exhausted in trying to provide it.
Instead, you should focus on the change your participants are trying to go through and give them only what they need to make that occur.
Evaluate and adjust
Also, ensure that you regularly review the things that are working, and then adjust. It is in your best interests to remain lean as a subscription business, and take the initiative to make those changes to help you serve your audience more effectively.
Conclusion
So now that we've walked through the process of starting an online business that offers subscriptions, the only thing left is to start! It's true this is the most difficult part. A lot of people have dreams of doing however, they suffer from an anxiety and analysis, causing them to think so much to the point that they fail to take that first step.
Don't be that person. Just get started! If you don't have it perfectly figured out, you'll be learning as you go. This is the great thing about this journey.
Ready to launch your subscription business?