Subscriptions are a business model based on a commitment to provide customers with a specific product at regular intervals—daily, weekly, bi-weekly, monthly, etc.—at a fixed price, paid in advance. You could offer physical products (cosmetics, healthy food, etc.) as well as digital products (meal plans, recipes, analyses, ebooks, etc.). In this post, we’ll focus on the latter.
A subscription business is a no-brainer for those of you who aren’t afraid of the consistency that it requires. Being consistent is extremely important in every business, but especially for this one. Skipping a release date even once may create some trust issues and lead to subscription cancellations.
However, the upfront payments are a huge advantage because your revenue becomes predictable, sometimes even from a long-term perspective. Once you have the money, you can sit back, relax and just concentrate on creating great products for your customers.
As an analyst and investor with 10+ years of market experience, I’ve seen lots of successful businesses based on subscriptions in my industry. Market analyses are a perfectly scalable product—if you write just one report, you can sell it to anywhere from 10 to 10,000 people!
The price and number of subscribers depend on your topic. If you’re operating within a niche, you may have fewer subscribers, but the price of your product may be higher because of the scarcity of well-presented knowledge on this subject.
Some ideas for subscription products include:
- If you work in financial markets, you could sell your regular analyses of a specific market (pharmaceutical companies, foreign exchange, oil, etc.). If you’ve already worked in the industry, and people know you, then monetizing this business would be easier. But if you’re a newbie, it’s the perfect way for people to get to know your name.
- You could create a business model based on email subscriptions. For example, create a valuable newsletter with practical DYI ideas.
- If you’ve already built a community, you could create a mastermind group and organize regular meetings, as well as send some exclusive content to its members.