Story: Limit of the service business
At the end of 2021, I am thinking about next year. I don’t make a long-term goal, only short-term. I would like to develop a product. I haven’t had a concrete idea yet. I am thinking about what kind of business can be. I have 2 categories in mind as a web/graphic designer. It’s a subscription business or marketplace business.
Even you think it’s not my business, the subscription business is everywhere. You may subscribe to Spotify, Netflix, Dropbox or Adobe, New York Times or Monocle Magazine, etc. We cannot avoid the subscription business in our daily life.
In this blog, I researched the subscription business and how can I develop it.
Subscription Business Models – 6 Types You Should Know
©Uscreen
– Membership Website Model
– Subscription Box Model
– “Netflix” Model
– Mastermind Model
– “Keep Them Engaged” Model
– “Subscribers Only” Model
It was the complete guide about the subscription business. Access or repeat. Both provider and customer have a benefit, but we need to provide value more than the user expects for retention and loyalty.
3 Types of Subscription Business Models and How to Start One
©Learn With Shopify
– Curation
– Replenishment
– Access
During the video, I was thinking about the product. Digital products/SaaS may be ideal. Because no shopping fee globally, but I don’t know how much cost will be taken for development. On the other hand, sending physical products is challenging, but receiving parcels is a good user experience. You may receive a good which you bought at Amazon during a holiday. Shipping may give both user and customer stress.
So, we need the reason, why we do it as well as what we do.
Build Recurring Revenue: How to Start a Subscription Box Business
©Learn With Shopify
– Products
– Website
– Shipping
– Marketing
I don’t need to develop a full system. At first, I make the MVP website. If you have a website, you don’t have to use Shopify, use a woo-commerce template. I use the same hosting server and sub-domain. It means no extra costs. A product does not need to exist, it is okay a mockup or just an idea. I can validate the idea whether it works or not. If it has enough traffic, I can find suppliers on AliExpress.
Thinking is fun.
Subscription / SaaS Financial Model Tutorial
©Slidebean
– Balance exciting with reality
– Marketing spent and revenue growth
He explains very details of costs and customer acquisition. In-bounce, out-bounce, organic, benefit of the yearly contract and monthly charge, etc. Practicum.
Conclusion: Turn idea to product
I am very cautious to increase monthly expenses. Therefore, I don’t subscribe to anything. No Amazon Prime, no Netflix, no Spotify. I don’t use DoorDash or UberEats. I have experience with Uber in L.A. I understand how it’s great. I watched Netflix when I used Airbnb. It was convenient for me. I don’t willing to subscribe to anything, but I understand I need to experience the trend.
Even so, I have to pay to UpWork, Adobe, Fido(cell phone), etc for daily life. Then, I am thinking to use Kindle or Audible in 2022.
I want to provide something subscription product that makes a consumer pleasure.
