Subscription services (or as some say, membership-based businesses) are a great way to have constant income. But how are they different from 9-5 jobs? Just asking because they are secure and predictable too. Those running an online subscription business have more free time, are not bound to a specific place, and the sky is their limit. In this article, we take a closer look at subscription services and the tools that facilitate them.
Why Are Subscription Services So Popular?
Here are 5 reasons why subscription services are so popular among the people.
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Exclusivity of the Subscription Services.
In a subscription business, only the premium members (or as they say, VIP subscribers) have access to the data, services, or products. This makes them feel unique and motivates them to stay with the business.
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Sense of Belonging to a Group.
Humans are basically social creatures, so they love being a group/team member. Subscription services satisfy this sense, as the members belong to a group with the same goals and values. Imagine a group of 100 traders who receive a crypto signal from a master. They all have the same purpose, methods, and concerns.
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Members Support Each Other.
Believe it or not, many purchase subscription services to be supported by their peers. A group of overweight people joining a “Diet and Exercise Plans” group seek support from other members. They share ideas, milestones, and failures to motivate each other and progress together. Plus, joining a group forces people to hold themselves to the standards of the group.
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The Flexibility of Subscription Services.
Usually, the subscription services are flexible. It means that they can be changed based on the customers’ expectations, needs, and situations. Of course, a business is not obliged to change its subscription plans for each customer, but it can do so if needed.
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Easy and Helpful Segmentation.
Customer segmentation means dividing people based on what they need, how they behave, geographic location, previous purchases, etc. Subscription-based businesses can segment their customers based on data they gather from them (age, location, gender, preferences).
Example: You have a Telegram channel where you share educational materials for premium users only. You have prepared two sets of e-books for students of age 10-13 and 14-17 and now want to send each group the right e-books. You can use SmartBotsLand’s subscription bot to ask for their age before sending the books to them.
Important Factors in Running a Membership Business
The best membership-based businesses around the world consider two points. If you want to be as successful as top subscription businesses, like Disney+ and Birchbox, look at the following two tips.
1. Make emotional connections with your subscribers.
Those subscription businesses that make emotional connection with their users will:
- a) Have more loyal customers.
- b) Gain customers’ trust.
- c) Create memorable experiences for their customers.
- d) Have higher ratings and better reviews.
- e) Outperform the competitors, even when the products are at the same level.
2. Be clear and communicate with customers.
In a membership business, the audience’s trust is everything. To earn your subscribers/followers’ trust, you should regularly communicate with them and be clear about your programs, plans, and rewards. Moreover, don’t wait for your customers to give you feedback. Ask for their opinion every now and then to ensure everything is working perfectly.
Membership-Based Businesses Examples
In the following paragraphs, you will find the best subscription-based business model ideas.
Food & Drink
Some businesses, like The Whiskey Concierge (in Canada) and HelloFresh (in Germany), send drinks and healthy foods to customers each month/day. These companies use different techniques to increase their sales. For instance, The Whiskey Concierge sends a special whiskey glass to its loyal customers or lets the customers send eGift cards or a whiskey subscription to their loved ones. Hello Fresh also lets the customers choose a FREE breakfast item (like bread or jam) for life. This motivates people to join their subscription and be their brand ambassador. Other subscription-based businesses in food & drink industry include:
- Sunbasket (healthy foods with organic ingredients)
- Trifecta Nutrition (meal plans based on customers’ diet)
- CrateChef (ingredients and recipes from famous chefs around the world)
- The Candy Club (six cup of hand-made candy from different brands)
Fashion & Beauty
Subscription businesses, like GLOSSYBOX, IPSY, and Love Goodly send a box of beauty and skincare products to the subscribers each month. The customers can choose the duration of subscription and their necessary items (like mini perfumes, sunscreens, maskara, and face masks.) Some brands like MeUndies also send high-quality underwear to male and female customers every month or every three months. Other subscription-based businesses in beauty & fashion industry include:
- Birchbox (beauty-related products)
- Gwynnie Bee (renting plus-size clothes)
- BootayBag (women’s underwear based on their size and body shape)
- Mamabox (pregnancy and after-birth kits)
- Menlo Club (a box of clothes for men)
- The Beard Club (men’s grooming & beard products)
Décor & Household Items
Good news for anthophiles! You can now get My Floral Letters (Hong Kong) or BloomsyBox (USA) subscription to receive a basket of flowers every day/week. Plus, BloomsyBox allows you to send a video message (along with flower bouquets) to your special ones to show your love & gratitude.
Moreover, not all people have time to go to the store every month and buy fridge filters or table mats. Therefore, they can purchase subscription services that send consumables at their door each month.
Physical & Electronic Books
Bookroo, Book of the Month, OwlCrate, and Brown Book Box are only some examples of subscription businesses that send their customers books. They use different techniques to keep their subscribers happy, like sending customized books to children of color, or adding bookmarks or stationeries to the boxes.
Also, some subscription services sell e-books via websites and Telegram bots. You probably know how the websites work, so let’s see how Telegram bots help these businesses. The seller:
- Creates a Telegram channel.
- Creates a subscription bot and add it to the channel.
- Locks the content on the channel so that no one can forward, copy, or save it without permission.
- Defines a subscription plan (weekly, monthly, and quarterly) in the bot.
The bot then automatically sends the e-books to the customers each month/week. It also detects the expired users and sends a reminder to renew their subscriptions. If the users don’t do so, the bot will remove them automatically.
Kids & Pets
Everyone loves to see their kids and furry friends happy, spoiled, and flashy. Here are top subscription-based companies that make it easy for parents and pet owners to show their love to their dearest ones.
For pets:
- WolfIt Box: sends healthy foods and high-quality toys to all over Australia monthly. The foods are organic, gluten-free, and vet-approved.
- BusterBox: based in the UK, the company delivers treats and themed toys for pets.
- BarkBox: to all the US folks, you can get two toys + two treats each month if you subscribe to this subscription business.
- KitNipBox: works exclusively on cats. It sends toys, treats, and accessories for cat owners.
For kids:
KiwiCo: sends a box of tools for children of different ages (from 0 to 18). The stuff in the boxes encourages kids to learn about physics, chemistry, electronics, robotics, etc. and fosters their creativity.
Spangler Science Club: if you want to raise scientists and engineers, the monthly boxes from this company are the keys.
Sensory TheraPlay Box: children of age 6-12 months love twisting, squeezing, shaking, dropping, and throwing things. This is how they connect with the world and develop their senses. Fortunately, this business has designed toys with that purpose. Purchase its subscription and get new toys every month.
Green Kid Crafts: sends boxes with hands-on activities. It reduces children’s screen time and fosters their creativity.
Other examples of subscription-based businesses:
People are also selling the following subscription services and make a fortune:
- Board games, sewing kits, etc. to families who need indoor entertainment.
- Sportswear, gear, protein powder, and training courses.
- Healthy snacks to schools and kindergartens.
- Themed boxes for movie fans (like Harry Potter or Marvel).
- Tobacco products.
- Religious-themed gifts like Christian-inspired jewelry, accessories, and household items.
6 Digital Subscription Business Ideas
Along with physical products, you can sell digital subscription ones. With the development of different AIs and bots, this job is much easier than selling physical goods. Here are 6 digital subscription business ideas you shouldn’t miss.
1. Sell educational materials online.
During the Covid-19 pandemic, teachers and coaches held their classes online. That was the beginning of an era because many people learned how to use online learning platforms and even take tests via websites and bots. Ever since, people are selling language learning materials, fitness tips, yoga videos, etc. on their websites, social media, and Telegram channels.
*Note*: Telegram is a more popular platform because a) plagiarism is less likely on that platform. b) Uploading the content is much easier in this messaging app than in a website. c) The files you upload are stored on Telegram Cloud, so they are well protected.
2. Share crypto signals.
Market experts or professional crypto traders dig into different markets and share their signals with new traders. Their insight helps other dealers make informed decisions and prevent loss of assets. Many of these experts have their own Telegram channel and share their information there.
3. Help other developers debug their coding.
If you are a professional UI/UX designer or web developer, you can share daily tips with your subscribers to earn money. The best platforms to do so are YouTube and Telegram. If you choose YouTube, make sure that there is a contact way, so the subscribers can ask their questions there.
4. Sell digital art.
Artists can also sell their artwork on different platforms and make extra bucks. Create tattoo designs, templates for social media, patterns for walls and decorations, etc. and sell them via Telegram. Those working in such industries are always looking for new ideas and unique designs.
5. Write and sell diet plans.
Dietitians can also create two Telegram channels, one for people trying to lose weight and one for those trying to gain weight. Of course, each body is unique and needs its personal meal plan; but you (as a dietitians) can share general tips for different weight ranges on your channel. People can then reach you for more exclusive diet plans.
6. Share audio/visual stories.
Have you seen “dramatize me” clips on IG and YT? The creators can sell such movies (or the written version of them) on a Telegram channel and use people’s curiosity to make money. If you are a talented writer, write gripping stories and share them daily or monthly.
The Best Platforms for Digital Subscription Services
Now that we know what the best subscription services are, it’s time to find a proper platform for them.
Telegram
Telegram is the most popular platform for subscription services because:
- It has more than 950 million active users monthly.
- Creating channels and using Telegram features are free.
- It supports different fiat and crypto payment gateways.
- You can have an unlimited number of subscribers in the channel.
- 75% of Telegram users can understand English.
- Sharing files on Telegram is easy and straightforward.
- The media are stored on Telegram Cloud, so they will not get lost.
- Telegram allows you to lock the content, so no one can forward or copy it.
- You can have 50 admins and unlimited bots in your channel.
- You can create as many Telegram channels as you wish.
- It doesn’t get commission from the businesses.
- It has analytical tools.
YouTube
YouTube is a proper platform for video content creators. They choose YouTube because:
- Creating a channel is straightforward.
- The content reaches a wider audience.
- Its tools are extremely helpful.
However, you cannot add subscription bots to your YouTube channel, so it might be harder to manage the members. Also, YouTube takes a 30% cut of your income which is a lot for many small businesses.
Membership websites
There are also some websites that allow you to sell digital subscription services. The most famous websites are Patreon and Uscreen (for video content). Remember that you can develop your own website and customize it for different content types (like blogs, videos, webinars, pictures, etc.), but it would be much more expensive than the above-mentioned options.
How to Start Your Subscription-Based Business on Telegram
Start your subscription-based business on Telegram in 4 steps.
1. Create two Telegram channels.
Create two Telegram channels; one public one for gathering customers, one private one for premium users and exclusive data. Write a SEO-based name and description for it and add new members to it.
2. Add a bot to the channel.
Add a subscription bot to the channel, so it can manage the subscribers, get membership fees from them, send payment links to them, etc. If you’d like to know how to add a bot to a channel, click here.
3. Create high-quality content.
With the time the bots save for you, you can create high-quality content. The only thing that organically increases your Telegram members is your content. Work on that !
4. Attract subscribers.
Use different techniques to increase your Telegram members. The more subscribers you have, the more your income. If necessary, create a group where people can share their reviews about your business. You can add a management bot to the group to help you deal with its challenges.
Tips to Sell More Subscription Services
Consider the following 6 tips to sell more subscription services.
- Specify who you are creating content for. This helps you make more targeted content and have more happy customers.
- Use social media to promote your work. Instagram, Facebook, TikTok, and other social media platforms are the best tools to be seen.
- Collaborate with influencers working in your niche. For example, if you are selling diet plans, partner with fitness influencers.
- Go for paid ads. Google Ads and Telegram Ads can be very helpful if your channel is struggling.
- Get feedback from your customers. Once you know what they want or what their problems are, you can refine your content or even pricing plans.
- Run discount campaigns or give surprising gifts. This keeps the subscribers engaged with your business.
The Last Words
Subscription services are shockingly profitable. No matter what your product or services are, you can make a living on such businesses. There are several platforms for starting a subscription-based business, such as Telegram, YouTube, Whatsapp, and different websites. Telegram is more popular than others because it allows the creators to add helpful membership bots to the channel or group.
FAQs
- What are the most popular subscription services?
The most popular ones work in the education and cosmetic industry.
- What should I do to sell more subscriptions?
Reward the customers. It releases dopamine in their brains and makes them like your business more. Membership businesses that give rewards (discounts, free products, exclusive access, etc.) are generally more successful.
- What is a “subscription box”?
It’s a box of goods that businesses send to their customers every week/month/season. The box may contain books, socks, makeup products, board games, household items, feminine hygiene products, or even food.
- How can I track my subscription business’s growth?
If you have a Telegram channel with over 1,000 followers, you can see its built-in analytics. However, if you have a website and need a third-party tool, try ProfitWell Metrics.
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