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Crafting Recurring Revenue: A Guide to Starting a Subscription Business

Updated: Nov 8, 2023

Welcome, creative entrepreneurs! Today we're diving into the world of subscription businesses. Whether you're looking to add a recurring revenue stream to your existing venture or starting fresh, this guide is your roadmap to success. Let's explore how you can turn your passion into a profitable subscription service.

Computer Screen with subscription options

Understanding the Subscription Business

A subscription business is all about convenience and surprise. Customers commit once and receive a product or service regularly, removing the hassle of repeated purchasing decisions. This model is not just a revenue booster; it's a stabilizer, smoothing out the unpredictable income roller coaster that many handmade businesses experience.

Subscription vs. Membership

While the terms "subscription" and "membership" are often used interchangeably, they can represent different models of recurring business relationships. A subscription typically provides access to a product or service. This could be physical goods delivered regularly (like a magazine, meal kit, or monthly box of curated items) or digital content/services (like streaming media or software). Memberships, however, often imply being part of a club or community, not just receiving products or services. This can include additional benefits like special access, exclusivity, or the ability to contribute to the community. Memberships may require or encourage more active engagement from customers, such as participating in forums, attending events, or contributing content. In practice, a business model could include elements of both. The key difference lies in the value proposition and the relationship the customer has with the service or community.

Are You Ready for Subscriptions?

Before you jump in, assess your readiness. Can you consistently create and deliver products or services? Do you have a customer base that craves regularity or novelty in your offerings? And crucially, are you equipped to handle the technological and inventory demands of a subscription service? If you're nodding along, you're on the right track.

Crafting Your Subscription Offer

Your subscription can be a 'refill' (think razors or snacks) or 'novel' (like a unique monthly jewelry piece). The former caters to regular needs, while the latter satisfies the desire for new and exciting experiences. Decide which type resonates with your products and audience.

Choosing Your Subscription Structure

Will you offer a sequential subscription, where every subscriber starts with the same product sequence, or a monthly model, where all subscribers receive the same item each month? Each has its merits and challenges, from inventory management to creating a sense of community and anticipation.

Setting Up the Tech

Your website and systems should be subscription-friendly. Starting simple with PayPal buttons is fine, but as you grow, you'll want seamless integration between your site and shipping services. Invest time and resources upfront to avoid headaches as your subscriber base expands.

Pricing Your Subscription

With scale comes the opportunity to reduce costs and offer competitive pricing. Make joining your subscription an easy decision over one-time purchases by passing on savings to your subscribers.

Marketing Your Subscription

Subscriptions can revolutionize your marketing efficiency. Convert a customer once, and they contribute to your income regularly. This is where strategic marketing, possibly even paid advertising, can significantly amplify your return on investment.


Starting a subscription business can be a game-changer, offering predictable income and customer loyalty. It's about delivering value consistently and leveraging the right tools to manage growth. With these insights, you're well-equipped to craft a subscription model that delights your customers month after month.


For more information and resources, visit Maximum Change Business Mentoring. If you're interested in getting extra help, consider joining the Founder's Circle, a mentoring group designed to help you succeed in your entrepreneurial journey.

Be well, stay safe, and use your brain. Think about the possibilities and get started on your business right away. See you soon!


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