Launching Your Own Subscription Service: A Step-by-Step Guide

Imagine you want to start a subscription business. What steps should you take, and which ones are the most crucial?

I’ve seen numerous subscription box businesses launch and grow successfully, but I’ve also seen some fail quickly. The good news is there are specific steps to start a subscription business the right way, and I’m excited to share them with you!

The most important rule in the subscription business is that convenience is key for both the customer and the business owner. Let’s use subscription boxes as an example.

For the customer, they get the benefit of hand-picked products tailored to their needs, delivered straight to their door. For you, as the business owner, you enjoy recurring monthly revenue and the chance to build lasting relationships with your customers.

Regardless of what product you choose or the niche you want to explore, not every idea is suited for a subscription model. Start by asking yourself some crucial questions.

The subscription business model is growing in popularity, and competition is fierce. From the successful subscriptions I’ve seen, those that stand out do some things exceptionally well.

Before moving on, define your ideal customer persona. This is incredibly important.

Now, let’s talk about pricing. The best way to start is to do your research. Check out your competitors, figure out your cost of goods (COGS), and estimate your customer acquisition cost (CAC). Set your initial price, knowing that you’ll adjust as your business evolves. Set it and keep moving forward to maintain your momentum.

Next, don’t get bogged down by design. Yes, your website should look good, but perfection can slow you down. When Subbly launched, our website wasn’t perfect, but we got our first paying customers and invaluable feedback to improve. Done is better than perfect.

Pay attention to these foundational aspects:

These steps are just the beginning, but I hope they inspire you. Every business should consider itself a value ladder and have a sales funnel in place. A subscription model can significantly increase your customer lifetime value (CLTV) by making additional upsells or sales to your existing subscribers.