How to Start a Subscription Business Online

Zak Hartzell -

Launching a subscription site or app can seem like a daunting task, but the rewards are a worthy incentive for those who succeed. From the ecommerce subscription model to unique enterprise social networks, opportunities for making money on membership platforms abound. With that in mind, let's take an in-depth look at a handful of tips and strategies for how to start a subscription service, along with a few ideas for subscription businesses to start brainstorming.

For the sake of discussion, let's explore the umbrellas that encompass the majority of popular subscription sites, apps, and platforms today. While there will be overlap in some instances, most platforms fall squarely into one of three basic categories.

The Ecommerce Subscription Model

Examples: BarkBox, Dollar Shave Club, Hello Bello

The success of an ecommerce subscription service often depends on savvy marketing and a steady growth plan. For one of the most popular examples of the ecommerce subscription business, we need look no farther than subscription box services.

Entrepreneurs who source and curate subscription boxes have the opportunity to tap into one of the most exciting ecommerce trends of the last several years. Unique subscription box ideas can take off like a rocket with shrewd management and a little bit of elbow grease. From luxury subscription boxes to monthly meal delivery, one inspired idea could be the next stroke of genius to take consumers by storm.

The SaaS Subscription Model

Examples: Netflix, Shopify, Canva

The SaaS subscription model (software as a service) differs from a typical social media platform in that it provides access to a digital product, typically for a monthly or annual fee.

Many household name SaaS examples offer "inexpensive" monthly memberships. If enough subscribers find your service to their liking, you can afford to offer a low barrier to entry and still bring in a steady stream of income month over month. If you're anything like me, you've likely discovered this at one point or another in looking over your own bank statements.

Since the charge may be no more than the price of a couple cups of coffee each billing cycle, plenty of users don't bat an eye at setting up autopay for a low-cost, high-quality SaaS.

The Social Platform Model

Examples: LinkedIn, Slack, Zendesk

When a service relies on its users interfacing with one another, scalability and user experience (UX) become crucial. Hitting a critical mass of users quickly is a big part of that. As Sociologist and Interaction Designer Sebastian Greger explains, paying ongoing attention to user experience is key for social media content creators. At the end of the day, social subscription-based business must sufficiently address scalability and UX.

But who says your social software has to approach the market like an Instagram or Facebook? In a space that's already extremely saturated, you'll certainly need to stand out to be successful. With that in mind, you might consider steering your ship toward slightly less busy waters.

Alternative Models for Social Software Services:

  • Enterprise Social Platform
    • With the growing ubiquity of Slack and other workplace platforms, enterprise social networking has become a much bigger market than it was in the early 2000s.
  • Social Customer Service Platform
    • Subscription services like Zendesk and Sprout Social provide companies with tools to interface socially with their customers. Selling subscriptions to a membership platform of this sort will probably blur the lines and overlap with the SaaS subscription model.

How to Start a Subscription Business Online:
The 4 Keys to Success

Choose Your Developers Wisely

Assuming you're not a platform developer yourself, you're going to need a tech partner. It will come as no surprise that the development team you choose to collaborate with is going to play a large role in building your subscription website or app.

Tech savvy entrepreneurs may be able to bootstrap a basic website on their own, but building a viable subscription platform is an entirely different animal. Take it from me, a custom platform build isn't an advisable DIY project. Collaborating with developers who have experience building subscription platforms can open up countless doors in terms of design, functionality, and UX strategy. Custom features like website automation and instant search can decrease friction and lend an air of modern sophistication to a subscription site.

Perhaps most importantly though, is how much easier it is to realize the dream inside your head when you delegate the tech side to focus on the big picture and/or operations. One of the biggest thrills of partnering with a custom web design studio is that you get to watch that team harness your vision and best ideas, customizing a digital product that will reflect what's in your head. Browse portfolios, ask questions, and choose your devs wisely.

Line Up Users Ahead of Time

There are a variety of ways to interest users ahead of time. Beta testing, targeted marketing, and plugging into the proper channels can each help to generate buzz.

Whether yours is a B2C or B2B subscription platform, consider getting involved in relevant groups and communities. Where do your future app or website subscribers hang out? Tapping into the culture and making connections can go a long way. Not long ago, our studio partnered with a local real estate professional to build a B2B subscription platform for real estate agents. Long before we launched, however, significant time was dedicated to identifying relevant channels and connecting with brokerages, lenders, and agencies to put our platform in front of the agents it would serve.

Test Post-Launch

This one should sound obvious, because it is. Of course, you have to ensure you perform enough QA testing. Test, test, test... and certainly don't stop testing once you launch.

Building a user base is a high-priority goal, but you still have to give those users something to stick around for. This is a balancing act, to be sure. If you drive up your user count and drop the ball on testing, engagement, and usability, those numbers are not going to stay high for long.

Listen to Feedback

The reason for post-launch testing actually brings us to our final point: Listen to what your users are telling you! If pre-launch beta testing is valuable, post-launch will be as well.

We launched AgentPins with a limited feature set with the plan to continue actively iterating on it. This approach allows your digital platform to stretch and evolve in the real world. Following extensive beta testing, QA testing, and backend tinkering, you finally get to see what works well, change what doesn’t, and allow your app or website subscribers to have a direct say in how you grow your subscription platform out from there.

Good subscription services and successful digital platforms are born of visionary ambition and thorough planning. From there, one must observe and adjust. If you're promoting an engaging platform, maintaining consistent quality, and paying attention to the needs and suggestions of your users, you're on the right track.

Bonus Subscription Service Business Ideas

If you're still on the hunt for that next million-dollar monthly subscription business idea, consider these popular niches for subscription sites:

  • Courses and Educational Content
  • Lifestyle products
  • Clothing Subscriptions
  • Content Creation
  • Grocery Box Subscription

Need Help With Your Online Subscription Business?

Chek Creative is experienced in building and positioning subscription sites and apps for market success. If you need help understanding how to start a subscription business or execute on your vision, please feel free to reach out to our team. Who knows? With some digital support, your idea could be in the conversation of the best subscription services of tomorrow. We look forward to speaking with you, developing a plan, and working together to launch something extraordinary.