6 types of subscription business models Are you confused about which subscription-based business model you should choose don’t worry I get it?You don’t know which one will fit your business and ensure that your customers will want to purchase.
In this article, I’m gonna help you remove all of the jargon all of the buzzwords and hope you get a clearer picture of which A subscription-based model is best for your business if you know the stuff that works. let’s get into it subscription-based business models are perfectly suited for two types of businesses those that offer
Access to content
A repeat service
let’s quickly take a look at each of these types of businesses so you can see which one fits access premium content for dedicated subscribers if you create content that educates engages in forms or entertains your subscription will focus on the access you have a standalone platform remembers area where your customers can access your premium content.
The next type of subscription model is a service with a new or restocked product every month. Content creators who deal in physical products can use subscription models to turn their products into services.
A great example of this is the cornerstone is the shaving company from the UK they send razors gels and creams each month directly to their customer’s homes. Setting it up once and forgetting it makes life a whole lot easier for their customers.
This product as a service model is a great way to stop your business from becoming commoditized. It’s no longer a price war or a race to the bottom if you can provide a great service with good branding, but this type of business model doesn’t just work for essential items.
I’ve seen it work for socks books weight-loss products even nerdy memorabilia if your service can solve a consistent problem or provide a new type of value periodically A subscription-based business model may also make sense for you.
You can also offer subscriptions if you offer a product that continuously creates new value, solves a consistent problem, or restocks what customers already purchased. It may be a good idea to consider a subscription-based business model if you feel that it is appropriate. Let’s explore some of the specific models.
1. MEMBERSHIP WEBSITE MODEL
By bringing together the most active and interested people in your niche, membership websites are an effective way to build a community while also monetizing the content you create.
In a membership website, your customers can choose how much or little interaction they want, unlike an online course where they can learn as they go.
The most successful membership websites are focused around one umbrella-themed magic weight-loss fitness yoga coding and so on. Then they break their content down into small bite-size strategies to solve specific problems.
With the membership model, you can also offer Members Only benefits such as Q&A sessions with you, or you can create a members area similar to a Facebook group.
By offering an online forum where all members of the community can get together in one central location, you can offer even more value to the members who are involved.
2. THE SUBSCRIPTION BOX MODEL
Subscription boxes deliver your product or your great idea to your customers’ front door. They offer great earning potential and a lot of customization depending on what it is that you offer and although the initial hype around subscription boxes has worn off.
customers sign up to periodically receive a box to their door that contain items around a theme topic or a problem to solve you can split these boxes into three separate categories retail boxes where a customer has pre-selected the items to be included.
it’s delivered at their requested intervals mixed boxes where a the customer knows one or two products that will be delivered in the box but the rest are surprised extras curated by the Box creator.
The fact that all members of the community can get together in one central location means that you can offer even more value to those who are involved. This type of model also works if your business is primarily focused on information.
Example
An Instagrammer could display their favorite accessories from the past three months, a weight loss blogger could display samples of protein powder supplements, and a business coach could showcase helpful planners, books, and productivity tools.
These ideas are just spitballs, but I’m sure you can see how creative you can be with a subscription box model.
3. THE KEEP THEM ENGAGED MODEL
You can use this model to keep your customers engaged throughout the year if your business has limited seasonal contact with them.
As an example, there are 50 yoga festivals around the world that host events each year. However, they wanted a way to keep in touch with their fans in between festivals as well as give them content that would allow them to stay connected. Can’t afford to attend their live events.
so they created an online platform wonder less TV where people could access lessons from their favorite instructors this model works similar to some of the others on this list works as a gateway to their main business offering which is events new customers can try them out and get a feel for them through their live streaming in their apps way before going all-in on a ticket to their event
Furthermore, existing customers are kept engaged between events in order to remind them how much fun they had, and if you use physical products, you could offer an online platform or a subscription box model to help keep them engaged.
for example, if you’re selling coffee machines you could create a subscription box with new coffees to try you sell fitness equipment. You could create an online training course.
4. THE MASTERMIND MODEL
masterminds allow you to create a product for the people in your community that are most committed to change if your business offers transformation be it financial business wait relationships.
You should keep a mastermind business model in mind if you’re not sure what a mastermind is a mastermind usually allows you access to the group through regular check-ins or meetings online and in person A defined time period.
has a clear goal and direction provides a high level of accountability has a group in individual benefits networking and coaching for example and as an optional element they have a basic entry requirement this is done for a recurring monthly fee which can range from ten to ten thousand dollars per month.
ship to Tony Robbins platinum plan for example will cost you about $65,000 per year masterminds are effective for people in your community who are stuck.
Your mastermind provides them with extra support and guidance to change where they are now or what they are doing now. A powerful example comes from one year no beer, a company that has dedicated itself to helping those in need.
they run challenges of varying links to help people take a break from alcohol for their most achievable length of time customers can sign up for twenty eight ninety or 365 days from prices starting at around thirty dollars per month.
The participants get access to email support from trained coaches, a Facebook group of other participants, daily videos, and free ebooks in an audio program, and all of this is done online so there’s no in-person interaction, but coaches and support are always available via email or Facebook group.
It is pretty easy to set up, especially if you’re a content creator, and it can take on many different forms. You’re allowing people access to your inner circle, which they wouldn’t normally have, and you’re providing them with extra support.
5. Per User Subscription Model
In a per user subscription model, each user pays a set price for access to the service. This price is determined by the size of the business, the features offered, and the number of users.
6. Per Month Subscription Model
In a per month subscription model, customers pay a set price for access to the service every month. This price may change depending on the features offered, the size of the business, and the number of users.
7. Per Year Subscription Model
In a per year subscription model, customers pay a set price for access to the service every year. This price may change depending on the features offered, the size of the business, and the number of users.
