Subscription services have become a regular part of daily life for many people. From streaming movies and music to getting your favourite snacks or top software each month, subscription-based models are now common. These services make it easy to try new things, access entertainment, stay organised, and even automate boring chores such as cleaning, ordering groceries and meal-planning. As an online business owner, subscription-based services can offer a more predictable income than just focusing on affiliate marketing, for example. However, you will need to offer something that your audience wants and is looking for if you are to make this a successful part of your online strategy. If you are unsure where to start, or how subscription billing works, I’ve put together this straightforward beginner’s guide to subscription-based business.
What is a subscription-based business?
A subscription-based business offers a service where you pay a regular fee (usually monthly or annually) to get access to a product or service. Instead of buying an item once, you keep receiving the product or service as long as you keep paying. This payment is called a subscription fee. You might recognise popular examples like Netflix (streaming movies and shows), Spotify (music), or subscription boxes such as HelloFresh (meal kits) and Birchbox (beauty samples). There are also subscriptions aimed at learning, like educational software, and even home maintenance items like air filters or razor deliveries.
Amazon now offers to send you regular items every month, two months, or at an interval you suggest, often at a discount. They encourage you to sign up so that you never miss an offer, don’t run out of loo roll or cat litter, and always have a spare face wipe when you need one!
As an entrepreneur, you can benefit from the more secure income knowing that every week/month/quarter, your customers will reorder your products automatically.
Types of subscription-basedsubscription-based business
- Media and Entertainment: Streaming video (Netflix, Disney+), music (Spotify, Apple Music), audiobooks (Audible), and even digital comics or online magazine platforms.
- Software and Digital Tools: Productivity platforms (Microsoft 365, Adobe Creative Cloud), cloud storage (Google Drive, Dropbox), editing tools, and website builders.
- Subscription Boxes: Meal kits, snacks, coffee, books, hobby kits, lifestyle products, clothing curation, and more.
- Online Services & Utilities: Web hosting, VPNs, fitness apps, meditation programs, and virtual learning environments.
Each of these works through recurring payments. When you cancel the subscription, your access ends when your current billing period runs out. That recurring structure is one of the easiest ways to ensure you’re always up to date with the latest offerings from the provider.
Most services allow you to pause, upgrade, or cancel online with a few clicks. This user-friendliness is one of the biggest selling points for many people. Some even give email reminders ahead of renewals or billing dates, so you’re never caught by surprise.
Benefits of a subscription-based business
There are many benefits for both the customer and the business owner. Here are some of the leading benefits:
- Convenience: New items are delivered to you, or services are always accessible without constant shopping or reordering
- Flexibility: You can pause or cancel as your needs shift or if your schedule gets hectic
- Cost-effective access: Subscriptions often let you enjoy premium products for less than buying them outright, especially with tool suites and streaming platforms
- Stumble upon new things: Subscription boxes can help you track down products or experiences you wouldn’t normally pick up in a shop or online
- No big commitments: Most subscriptions run month-to-month, which means it’s easy to switch to something else without major financial risk
With all these pluses, it’s easy to get swept up in adding new subscriptions, but be sure to pick only those that make real sense for you!
Drawbacks of subscription-based services (for consumers)
While subscription services are convenient and often great value, they do come with some potential downsides. It’s worth being aware of the drawbacks so you can make more mindful choices – and avoid subscription overload and a rapidly declining bank account!
- Forgetting to cancel: Many people sign up for a free trial or discounted offer and forget to cancel before being charged. These small recurring costs can quickly add up, especially if you’re not using the service regularly
- Paying for things you don’t use: It’s easy to end up subscribed to multiple platforms or tools that sounded good at the time but aren’t really adding value to your life anymore. If you’re not actively watching, reading, or using the content, you’re essentially paying for clutter
- Hidden renewal terms: Some subscriptions make it a little too easy to sign up – but not quite as easy to leave. Always check how to cancel, whether there’s a notice period, and if your subscription auto-renews at a higher price after a trial ends
- Budget creep: Because many subscriptions are low-cost, they can fly under the radar. But if you add up all your monthly and annual services – from TV to apps to shaving kits – it might surprise you how much you’re actually spending
- Too many logins and platforms: Managing multiple subscriptions can also mean multiple passwords, payment cycles, and platforms to keep track of. It can be mentally tiring and reduce the enjoyment of the service if it’s not well integrated into your routine
Be careful to keep track of your subscriptions…
Flipping the model and becoming the provider
As an entrepreneur, you need to flip the model and become the provider instead of the customer. Subscription-based services can offer you a more stable income stream than one-time purchases or occasional affiliate clicks. You can create something once, deliver it repeatedly, and build stronger relationships with your audience along the way. It’s not just about income – it’s about building trust and consistency.
If you’ve got useful knowledge, a practical skill, or something you already create regularly,, a subscription model could be the next step in growing your online business.
Here’s what you need to know before you jump in.
Challenges to consider
While subscription-based models have lots of potential benefits, they aren’t always the right fit for every person or every business, so it’s worth weighing up the challenges, too. Subscriptions can create unhappy customers very quickly, so you will need to have the time to dedicate to supporting your customers more often too. Consider:
- Content fatigue: Creating regular content or delivering ongoing value can feel like a lot, especially if you’re working solo
- Customer churn: People cancel subscriptions all the time – it doesn’t always mean you’ve done something wrong, but it can affect your income and confidence. I remember when I first started my performing arts business and we steadily built up our students from 5 to about 30 within a few weeks. When the first person gave notice to stop classes, I remember feeling gutted, like I had done something personally to upset them. Obviously this wasn’t the case, and I think it turned out that they were moving house, but nevertheless, you need to be prepared for this upset to your confidence
- Tech setup: Depending on your platform, managing payments, content access, and customer service may take a little time to learn
- Marketing pressure: You’ll need to promote the service regularly, not just launch it once and forget about it
The key is to start small, keep things manageable, and grow your offer alongside your audience. Now, let’s look at how to do that step by step.
Step-by-step guide: How to create your own subscription service
1. Decide what you’re offering
Your first step is to decide what you’re actually going to deliver. This might be:
- A monthly bundle of digital resources (e.g. planners, templates, printables)
- Exclusive access to a private community or forum
- Short, themed lessons or journal prompts
- Discounts or early access to new products
- Regular coaching or Q&A sessions
Think about what people already enjoy from you for free. Is there something they’d love to get more of on a regular basis? What do they often ask for? That’s usually a good sign of what could work.
2. Choose your delivery format
You’ll also need to decide how people will receive their subscription content. Will you email it to them? Host it in a private members’ area? Deliver it through a platform like Patreon or Substack?
There are plenty of options out there – and you don’t need anything fancy to get started. Some creators begin with a simple email sequence or a password-protected page on their website. Others use platforms like:
- Kit (for email-based digital products)
- Teachable or Podia (for hosted memberships)
- Substack (for written or audio content)
- Patreon (for creative or community-based offerings)
Choose what works best for your skill level and audience. You can always scale up later.
3. Set your pricing and frequency
Subscriptions don’t have to be expensive. In fact, lower-cost offers often attract more people at first.
Start by deciding:
- How often will you deliver new content – weekly, monthly, quarterly?
- How much value are you offering over time?
- Do you want to offer different pricing tiers?
You might consider:
- A starter tier at £5–10/month (access to core content)
- A growth tier at £15–25/month (extra resources, community, etc.)
- A premium tier at £45+/month (coaching, support, or behind-the-scenes content)
Make sure you can realistically deliver what you promise at each level. This is very important so that you do not overwhelm yourself with work so that you underdeliver on things you have promised. You can always develop your content as you progress and build up your resources so start small.
4. Create your first batch of content
Before launching, aim to create at least 1–2 months’ worth of content or materials already produced. This gives you a buffer and lets you focus on onboarding and marketing without scrambling to produce something valuable every week.
That first batch might include:
- A set of templates or PDFs
- A welcome video or email series
- A workbook or starter guide
- Your “vault” of previous materials or posts
Keep it simple – and make sure your subscribers know exactly what they’re getting so that you are managing their expectations and overdelivering on them.
5. Set up your payment and access system
This can feel overwhelming at first, but the good news is there are many tools that make this easier now.
- Use Stripe or PayPal to collect recurring payments
- Set up an automated welcome email or page with instructions
- Make sure your cancellation and refund policies are clear
If you’re using a third-party platform (like Podia or Substack), many of these elements are already built in. On your own site, you can use plugins or services like ThriveCart, Woocommerce, or ConvertKit Commerce.
6. Launch but start small
You don’t need a huge launch campaign. A simple, soft launch to your email list or social media followers can work beautifully.
You might even invite people to be founding members at a discounted price in exchange for feedback. This lets you test the idea, make adjustments, and get testimonials before going big.
Remember: your first version doesn’t have to be perfect – it just needs to offer value.
7. Keep showing up – and keep it fresh
Once you’ve launched, your job isn’t over. In fact, it’s just beginning. The best subscription models evolve with their audience. Keep asking:
- What do your subscribers love?
- What would make it even better?
- Is it time to add a bonus or switch up the format?
You could also offer small surprises now and then – a bonus resource, a shout-out, or early access to something new. Little touches like that keep people feeling valued – and much more likely to stay subscribed.
Final thoughts
Subscription-based services aren’t just for big companies or fancy platforms. As a solo creator or small business owner, they offer a powerful way to build recurring income, strengthen relationships, and provide real value to your community.
Start simple, focus on quality over quantity, and stay connected to the people you serve. Your subscription doesn’t have to be perfect to be profitable – it just has to be useful, consistent, and true to your voice.
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