If you have an online business, you probably know there are tons of ways to monetize your traffic and upsell your customers or clients. Some of these tactics are more profitable than others. For instance, a subscription model has vast potential to engage your customers and generate ongoing revenue for your business.
Choosing the right subscription model for your online business depends upon what you’re offering your customers and what you want your subscription service to do for your bottom line. And if you think your business isn’t geared for a subscription model, think again.
Subscription services are popping up in the most unlikely places in the eCommerce world, and virtually any online business can profit from this savvy strategy to monetize existing or future customers. Read on about different types of subscription models, and explanations as to how they might be right for your business.
The Two Primary Subscription-Based Models and How They Work
There are two basic types of subscription models that can work wonders for most online businesses. These models are known in the industry as access and repeat services. Here’s a breakdown of each of these two subscription services and how they work.
Access Model – Premium Digital Content
This model is perfect if you’re in the business of providing engaging online content such as coaching tips, educational courses, or entertainment media such as audiobooks, videos, and movies. If you have digital content you want to share with subscribers, then the access model is ideal for your business.
It looks like this – you create an exclusive member’s area on your website where customers pay to subscribe to your premium digital content. Netflix is a good example of an access model, but your content doesn’t have to be movies. You can offer workshops, video guides, eCourses, articles, or even ‘sneak-peak’ book excerpts for the best-selling novel you’re rolling out.
The idea here is if your followers love you and what you do, you can offer them a paid subscription for access to content nobody else can get. It’s a trendy way to leverage your expertise and talent, and it’s also a keen way to make money, especially if you already have a strong following. Furthermore, the access model is very popular because it speaks to people who want the very best you have to offer – and they’re willing to pay for it.
So, if you have transformative, compelling content that engages people and improves their lives, the access model could be your solution for making money and building your business.
Repeat Model – New Physical Products or Restock Items Each Month
This type of subscription is best if you’re in the business of selling a physical product. You might be asking, “How would a subscription service work with selling my widgets and whatnots?” Great question. If you have a product, you can easily turn it into a service for your customers by offering a monthly subscription. You can do this by building gift boxes with your products, sending out new offerings each month or providing restocking services to your paid subscribers.
A great example of the repeat model is found in a deluxe coffee subscription service. In this scenario, subscribers receive their favorite java beans or a bespoke box of new coffee brews in the mail to enjoy every month. This is an excellent way to keep your customers connected with your products, while also making repeated revenue on a product subscription service.
If your product is a consumable that customers need to restock such as food items or beauty products then think about offering the option for customers to sign up for a monthly restocking subscription. This automates future ordering processes, making it easier for your customer to keep your products in stock without worrying about having to reorder when they run out. And, it’s great for you because you have ongoing, monthly sales revenue.
The repeat model is also an excellent way to keep your product line evergreen and your brand positioning top-notch. To explain, selling the same widget every day can potentially run the risk of your business becoming commoditized. Commoditization is when customers may see your offerings as “just another thing” they can get anywhere (and maybe even cheaper). You can avoid this by offering new features, add-ins, or customizations to your products for those who subscribe to your exclusive offers.
Repeat subscription services encourage you to get innovative about your products so people can expect something unique in their mailbox every week, month or whenever you choose to ship. This model is an effective way to keep your customers connected with your brand and keep them craving your products.
Ideas for Effective Subscription Models
After reading about the main types of subscription models and what they are, you might still be wondering if a subscription model is right for your business. Read on for different ways entrepreneurs are taking advantage of this method of monetization for ideas and inspiration.
Box-A-Month: This is a repeat model in which your products are delivered right to your customer’s door every month. This can be as simple as offering your customers a way to select their own products that you automatically ship to them each month. Or, you can think outside the box and get creative. For example, included in a subscription fee, you can add extra items with a customer’s standard order that are relevant to their shopping behavior. You might even offer a mystery box subscription where you can delight your customers with surprise items. This is a great way to keep your products fresh and relevant as well as keep your customers engaged with your offerings.
Membership: This is an access model that offers tons of benefits to your audience. If you’re an expert in your niche and have a loyal following, think about offering them a membership subscription. For a set price a month, you can provide your members with exclusive content in the form of articles, eCourses, videos, excerpts, PDFs, and more – all accessible through an exclusive membership subscription. You can also make yourself available in the member’s area where you can offer tips, advice, or answer questions via live chat. Many membership subscriptions include forums where other members can discuss and exchange ideas with each other. This is a great way to build your following and monetize your content.
Masterclass: This is another access model that provides your subscribers with online informational courses where they can learn about a subject you’ve already mastered. It has become a popular way for people to improve their lives or become educated on a subject they’ve always wanted to learn. A subscription allows people to view all of your course material, as well as access your training or teaching videos. You don’t have to stop there. You can invite guest speakers and teachers and have their material available to subscribers too. This is yet another smart way to build your online community and enhance your brand while generating income.
Is the Subscription Model Right for Your Business?
In the final analysis, only you can answer that question. Hopefully, these tips and ideas inspire you to think about giving the subscription model a try. When you combine your creativity with your unique perspective and solid groundwork, you may find a subscription model is an outstanding option for your online business.
