This guide provides the step-by-step process showing how to create a subscription website, including choosing a platform, setting up payment processing, creating content, and promoting your site. Whether you’re a seasoned entrepreneur or a content creator looking to monetize your work, this guide will provide the information you need to build a successful subscription website.
A subscription website is an e-commerce website that allows customers to sign up for recurring deliveries or access products or services.
Subscription service websites typically offer a variety of subscription plans for customers to choose from, and they process recurring payments from customers to provide ongoing access to the service.
Subscription services websites can take many forms, including:
- Subscription boxes: These websites offer customers the option to receive regular deliveries of curated boxes containing a selection of products, such as beauty products, snacks, or artisanal items.
- Meal delivery services: These websites offer customers the option to have meals delivered to them on a regular basis, either fully prepared or as meal kits with ingredients and recipes.
- Gated Content: These websites offer customers the option to pay a subscription fee to access exclusive content, such as online courses, articles, or streaming media. Gated content means a requirement (usually a fee) to access the content.
- Software as a service (SaaS): These websites offer customers the option to pay a subscription fee to access software or services on a recurring basis.
Subscription sites can be lucrative in 2023 for a number of reasons
- Recurring revenue: Subscription sites generate recurring revenue from customers who pay a regular fee to access the site’s products or services. This can provide a stable and predictable source of income for the business.
- Customer loyalty: Membership sites can foster customer loyalty by providing ongoing value to their customers. This can lead to higher retention rates and lower customer acquisition costs over time.
- Customer data: Subscription sites can collect data on their customers, including their preferences and behavior, which can be used to improve the customer experience and drive business growth.
- Increased customer lifetime value: Subscription membership sites can increase customer lifetime value by providing ongoing value to their customers and encouraging them to stay with the service for longer.
Overall, subscription sites can be lucrative in 2023 because they offer a stable source of recurring revenue, foster customer loyalty, and provide opportunities to collect customer data and increase customer lifetime value.
Step 1: Determine your Membership Model
A membership model is a business model in which customers pay a fee to join a club or association and receive ongoing benefits or access to products or services. Membership models are often used by subscription services businesses, where customers pay a recurring fee to receive ongoing access to products or services.
There are a few different types of membership models that businesses can use, including:
Membership Tiers
A tiered membership model is a type of membership model that offers different membership levels at different price points, each with its own set of benefits or perks. This model is often used by subscription businesses to appeal to a wider range of customers.
Here’s an example of how a tiered membership model might work for a subscription membership website:
- Tier 1: Basic membership ($10/month) – Includes access to basic content or products and discounts on additional purchases.
- Tier 2: Premium membership ($20/month) – Includes access to premium content or products and additional discounts and perks.
- Tier 3: Elite membership ($30/month) – Includes access to all content or products and the highest level of discounts and perks.
Customers can choose the membership tier that best fits their needs and budget and upgrade or downgrade their membership anytime.
A tiered model can be a good way to attract a diverse range of customers and provide value to each segment of your audience when creating a subscription membership website.
Freemium
A freemium model offers a basic level of access or service for free, with the option to upgrade to a paid membership for additional benefits. This model is often used by subscription site businesses to attract a large base of users and then monetize a portion of those users through paid upgrades.
Here’s an example of how a freemium model might work for a subscription membership website:
- Free membership: Includes access to a limited selection of content or products, as well as basic features. A free trial period may also be offered.
- Paid membership: Includes access to all content or products, as well as additional features and perks.
The free membership is intended to attract many users and give them a taste of what the subscription website offers. Those users who want access to more content or features can upgrade to a paid membership.
Using a freemium model can be a good way to generate a large user base and monetize a portion of those users through paid upgrades. Consider the balance between the free and paid offerings carefully and ensure that the value proposition is clear and compelling for both types of users.
Subscription
A subscription membership model is a type of membership model that involves a recurring fee for ongoing access to products or services. This model is often used by subscription site businesses, where customers pay a regular fee to receive ongoing access to products or services.
Here’s an example of how a subscription model might work for a subscription website:
- Customers sign up for a subscription plan, choosing from various options such as the frequency of deliveries (e.g., monthly, quarterly) and the type of products or services offered.
- Customers are charged a recurring fee, typically on a monthly or yearly basis, to maintain their subscriptions.
- Customers have ongoing access to the products or services included in their subscription plan as long as their subscription is active.
A subscription model can be a good way to generate recurring revenue for your business, as customers pay a regular fee to maintain their subscriptions. Carefully consider the value proposition of your subscription and offer various subscription options to appeal to different segments of your audience.
Pay-per-use
A pay-per-use model is a membership model that charges customers a fee each time they use a product or service rather than a recurring fee for ongoing access. This type of model is often used by businesses that offer high-value products or services that are not used on a regular basis.
Here’s an example of how a pay-per-use model might work for a subscription website:
- Customers sign up for an account on the website and provide payment information.
- Customers can access and use the products or services offered by the website on a pay-per-use basis, with each user being charged to their account.
- Customers are only charged for the products or services they use rather than a recurring fee for ongoing access.
Using a pay-per-use model can be a good way to monetize products or services that are not used on a regular basis. It’s important to consider the value proposition of your pay-per-use offering carefully and ensure that the pricing structure is clear and transparent for customers.
There are a few key factors to consider when determining a membership model for your subscription website:
- Value proposition: What value are you offering to your customers through your subscription model? This will help you determine the type of membership model most appealing to your target audience.
- Customer needs: Consider the needs and preferences of your target audience. For example, if you’re offering a meal delivery service, you might offer different membership models based on factors like the number of meals per week or the type of cuisine.
- Pricing: Determine how much you want to charge for your subscription, and consider offering different pricing tiers or options to appeal to different segments of your audience.
- Competition: Research your competitors and see what types of membership models they offer. This will help you understand what’s already available in the market and how to differentiate your offering.
- Testing: Consider testing different membership models to see which are most popular with your customers. You can use data and feedback from your testing to refine and optimize your membership model over time.
Ultimately, the right membership model for your subscription website will depend on your target audience’s specific needs and preferences and the value you’re offering through your service.
Membership Levels
Membership levels refer to the different tiers or membership categories a business offers as part of its membership model. Membership levels are often used to differentiate the benefits and perks offered to different segments of a business’s audience. They are typically based on factors such as the membership’s price, the membership, the duration of the membership, and the level of access or service being offered.
Here are a few examples of membership levels that a business might offer:
- Basic: This membership level offers benefits or access to products or services, often at a lower price.
- Premium: This membership level typically offers higher benefits or access to products or services, often at a higher price point.
- Elite: This membership level typically offers the highest benefits or access to products or services, often at the highest price.
- Trial: This membership level is typically offered for a limited time and allows customers to try the service before committing to a full membership.
Access Restriction Options
Restricting access to a subscription website means limiting the ability of certain users to access certain content or features on the website.
The goal of restricting access on a subscription website may be to control access to premium content, protect intellectual property, limit liability, or manage demand for the service.
There are a few reasons why you might want to restrict access to a subscription website:
- To control access to premium content: If your service offers premium content only to paying subscribers, you may want to restrict access to non-subscribers to encourage them to sign up for a subscription.
- To protect intellectual property: If your subscription includes proprietary or copyrighted content, you may want to restrict access to prevent unauthorized use or distribution of the content.
- To limit liability: If your offerings include content that may be inappropriate for certain audiences (e.g., adult content), you may want to restrict access to prevent liability or to comply with laws and regulations.
- To manage demand: If your membership site has limited resources or capacity, you may want to restrict access to manage demand and ensure that your service can handle the number of users accessing it.
Here’s how to Apply the Restriction Method
- Use a login system: Requiring users to log in with a username and password can help to restrict access to your subscription website. You can create different user roles or permissions for different access levels, depending on the membership level or type of customer.
- Use IP restrictions: You can restrict access to your website based on the user’s IP address. For example, you might only allow users to access the site from within a certain geographic region or from certain IP addresses.
- Use access codes or coupons: You can provide access codes or coupons to specific users or groups of users, which they can enter to gain access to your website. This can be a good way to control access to specific content or features on your site.
- Use content locking: You can use content-locking software to restrict access to specific content or pages on your website. Users would need to complete a specific action (e
Step 1: Choose the Right Platform
The first step in setting up a subscription website is to choose the right platform. A few key factors to consider when choosing a platform include cost, ease of use, and available features. Some popular platforms for subscription websites include:
Shopify
Shopify is a popular e-commerce platform that offers a wide range of features and integrations for subscription websites. It’s user-friendly, easy to set up, and has various options for payment processing and customer management.
Shopify is a good choice for a subscription-based website business model because it offers a wide range of features and integrations specifically designed for a subscription website.
Some of the key benefits of using Shopify include:
- Subscription Plans: Shopify makes it easy to create and manage multiple subscription plans, including different pricing tiers and frequency options. You can also offer customizable options, such as the ability to choose specific products in a subscription box.
- Payment Processing: Shopify integrates with various payment gateways, including its own Shopify Payments, to make it easy to accept customer payments. You can also set up automatic billing for recurring subscriptions.
- Customer Management: Shopify provides tools for managing your customers, including tracking their subscription status, updating their billing and shipping information, and handling cancellations or changes to their subscription plan.
- Order Fulfillment: If you’re offering physical products as part of your plan, Shopify provides tools for tracking inventory, packing and shipping orders, and handling returns or exchanges.
WordPress + WooCommerce
A WordPress website can work to create a subscription website by using the WooCommerce plugin, which allows you to turn your website into an e-commerce store. With WooCommerce, you can create and manage various subscription plans, process payments from customers, and handle customer management and order fulfillment tasks.
To set up a monthly fee subscription site on your WordPress website using WooCommerce, you’ll need to do the following:
- Install and activate the WooCommerce plugin on your WordPress website.
- Set up your payment gateway and configure your payment settings in WooCommerce.
- Create your subscription products and plans in WooCommerce. This will involve setting up the product details, pricing, and subscription options (e.g., frequency, duration).
- Add the subscription products to your website and create any necessary pages or content to promote and explain your membership website.
- Configure any additional settings or features in WooCommerce that you need for your services, such as customer management or order fulfillment.
With WooCommerce and WordPress, you can create a professional and user-friendly subscription website that allows you to manage your subscriptions and easily process customer payments.
WooCommerce is a good choice for someone who wants to start a subscription-based website because it is a powerful and flexible plugin that allows you to turn your WordPress website into an e-commerce store.
Here are some specific benefits of using WooCommerce to create your own subscription website:
- Customizable Subscription Plans: With WooCommerce, you can create and manage various subscription plans, including different pricing tiers, frequency options, and customizable options. You can also offer special promotions or discounts to encourage customers to sign up for your service.
- Payment Gateways: WooCommerce integrates with many payment gateways, including popular options like PayPal and Stripe, to make it easy to accept payments from your customers. You can also set up automatic billing for recurring subscriptions.
- Customer Management: WooCommerce provides tools for managing your customers, including tracking their subscription status, updating their billing and shipping information, and handling cancellations or changes to their subscription plan.
- Order Fulfillment: If you’re offering physical products as part of your service, WooCommerce provides tools for tracking inventory, packing and shipping orders, and handling returns or exchanges.
Overall, WooCommerce is a robust plugin that offers a wide range of features and integrations to help you set up and manage a successful service on your WordPress website.
Custom Development: You may consider custom development for your service website if you have the budget and resources. This can be a good option if you need a highly customized solution or have specific requirements that an off-the-shelf platform can’t meet. My brothers Jeff and Paul Helvin at Ballen Brands can help you with a business website. Call 702-917-0755.
Membership Management Software
Membership management software is a type of software that helps businesses manage their memberships and subscriptions, including tasks such as processing payments, tracking membership status, and handling customer information.
Membership management software is often used by businesses that offer subscription-based products or services, such as subscription box services, meal delivery services, or content access websites.
Features of membership management software may include:
- Payment processing: The ability to process recurring payments from customers and manage billing and payment information.
- Customer management: Tools for tracking customer information, such as contact details, subscription status, and billing history.
- Membership plans: The ability to create and manage multiple membership plans, including different pricing tiers and frequency options.
- Communications: Tools for sending emails or messages to members, such as newsletters or updates on new products or services.
- Reporting: The ability to generate reports on membership data, such as the number of active members, revenue generated, and churn rate.
Membership Management Software Options
There are a number of membership management software options available, and the best one for you will depend on your specific needs and budget. You can use a WordPress membership plugin to manage membership Subscriptions.
- MemberPress: This software is designed specifically for WordPress websites and offers a wide range of features for managing memberships and subscriptions, including payment processing, customer management, and communication tools.
- Wild Apricot: This software is designed for small- and medium-sized organizations and offers a range of features for managing memberships, including payment processing, customer management, and communication tools.
- MemberMouse: This software offers a wide range of features for managing memberships and subscriptions, including payment processing, customer management, and communication tools. It is designed to be easy to use and integrates with various payment gateways.
- Kajabi: This software is designed for creating and selling online courses and offers a range of features for managing memberships, including payment processing, customer management, and communication tools.
- WooCommerce Subscriptions: This plugin is designed for WordPress websites and offers a range of features for managing subscription website, including payment processing, customer management, membership plans, communications tools, and reporting.
Step 3: Set Up Your Website
Once you’ve chosen your platform and identified the key features you need, it’s time to start setting up your website. This will involve:
- Designing the layout and branding of your site
- Adding and organizing your products and subscription plans
- Setting up payment processing and customer management systems
- Creating any necessary content, such as FAQs, terms of service, and privacy policy
Step 4: Launch and Promote Your Service
Once your website is set up and ready to go, it’s time to launch your subscription website. This will involve promoting your service to potential customers through various channels, such as social media, email marketing, and advertising. You may also consider offering special promotions or discounts to encourage people to sign up for your service.
Examples of Subscription Sites:
Here are a few examples of successful subscription websites to inspire you:
- Birchbox: Birchbox is a subscription membership that delivers beauty and grooming products to its customers monthly.
- Blue Apron: Blue Apron is a meal kit delivery service that sends subscribers pre-measured ingredients and recipes for chef-crafted meals.
- Dollar Shave Club: Dollar Shave Club is a monthly membership that delivers its customers razors, shaving cream, and other grooming products.
- Stitch Fix: Stitch Fix is a personal styling service that sends subscribers clothing and accessories picked to their individual tastes.
Step 5: Build Online Communities
An online community is a group of people who communicate and interact with each other via the internet, typically around a shared interest or purpose. Online communities can be found on various platforms, including social media, forums, chat rooms, and messaging apps.
Building online communities for a subscription website can be important for a number of reasons:
- Increased engagement: Online communities can encourage greater customer engagement and participation, which can lead to higher retention rates and more satisfied customers.
- Customer support: Online communities can provide a platform for customers to ask questions, get help, and provide feedback, which can improve the customer experience and build loyalty.
- Word-of-mouth marketing: Online communities can serve as a platform for customers to share their experiences with the subscription website generating word-of-mouth marketing and attracting new customers.
- Product development: Online communities can provide valuable insights and feedback on products and services, which can inform product development and improve the overall offering of the subscription website.
Here are a few steps you can follow to build an online community for a website subscription service:
- Choose a platform: Decide where you want to build your online community. Options may include social media, forums, chat rooms, or messaging apps. Consider the preferences and behavior of your target audience when choosing a platform.
- Establish guidelines: Develop guidelines for your online community to ensure that it is a positive and respectful place for members to interact. This may include rules around content, behavior, and moderation.
- Promote your community: Spread the word about your online community through your website, email lists, and social media channels. Encourage your existing customers and followers to join the community and participate.
- Engage with your community: Encourage participation and engagement in your online community by regularly posting content, asking questions, and responding to comments and questions from members. You can also consider hosting events or activities to unite the community and foster a sense of community.
Overall, building online communities for a subscription website can help increase engagement, improve customer support, generate word-of-mouth marketing, and inform product development, all of which can contribute to the business’s success.
Subscription site vs. Membership site
A subscription site is a business that offers customers ongoing access to products or services in exchange for a recurring fee. Subscription websites are often offered on a website where customers can sign up for a subscription plan and pay a regular fee to receive ongoing access to the service.
A membership site is a type of website that requires users to pay a fee to join and access exclusive content or features. Membership sites can be part of a larger business, such as a subscription or standalone website offering access to specific content or service.
The main difference between a subscription and a membership site is the offer offered to customers. A subscription site provides ongoing access to products or services, while a membership site provides access to exclusive content or features. However, both types of businesses typically rely on a membership model, where customers pay a fee to join and receive ongoing benefits or access.
Subscription Website Profitability
Subscription websites can be profitable if they can attract and retain a sufficient number of paying subscribers. Some factors that can contribute to the profitability of a subscription website include:
- The value of the products or services offered: Subscription websites that offer high-value products or services that are in demand are more likely to be profitable.
- The pricing of the subscription: Subscription websites that offer competitive pricing and a clear value proposition are more likely to be profitable.
- The retention rate of subscribers: Subscription websites that are able to retain a high percentage of their subscribers over time are more likely to be profitable, as they will generate ongoing revenue from these subscribers.
- The cost of running the website: Subscription websites that are able to keep their operating costs low will have a better chance of being profitable.
There are a few steps you can follow to calculate the potential profitability of a subscription website:
- Determine the cost of running the website: Calculate the total costs associated with operating the website, including expenses such as hosting fees, employee salaries, marketing, and advertising costs, and any other expenses.
- Estimate the number of subscribers: Determine how many subscribers you expect to have based on factors such as the size of your target market, the pricing of your subscription, and your marketing efforts.
- Calculate the projected revenue: Multiply the number of subscribers by the subscription price to calculate the total projected revenue for the website.
- Subtract the costs from the revenue: Subtract the total costs of running the website from the total projected revenue to calculate the potential profitability of the website.
Costs of Building a Subscription Website
The costs will vary widely depending on the specific needs and goals of the website. Here are some rough estimates of the costs you might expect to incur when building a subscription website:
- Design and development: The cost of designing and developing a subscription website will depend on the complexity of the site and the number of features and functionality it requires. Hiring a professional design and development team may cost anywhere from $5,000 to $50,000 or more, depending on the scope of work. Using a pre-designed template or building the site yourself may be significantly cheaper, although you may need to invest in additional tools or resources.
- Hosting: The cost of hosting a subscription website will depend on the size and traffic of the site, as well as the hosting plan you choose. Shared hosting plans may cost as little as $5 to $15 per month, while dedicated hosting plans may cost $100 to $500 or more per month.
- Maintenance: The cost of maintaining a subscription website will depend on the number of updates and changes required, as well as the complexity of the site. Ongoing maintenance and support may cost anywhere from a few hundred dollars per month to several thousand dollars per month, depending on the site’s needs.
Again, these are just rough estimates, and the actual costs of building a subscription website will depend on the specific needs and goals of the website. It’s important to carefully consider your budget and priorities when planning the development of a subscription website.
FAQ
What does Customer Lifetime Value Mean?
Customer Lifetime Value (CLV) is a measure of the total value that a customer brings to your business over their entire life as a customer. It takes into account the money customers spend on products and services, how long they remain with you, the frequency of purchases, and any other additional value they bring to your business.
Is it Possible to Build a Subscription Website for Free?
It is possible to build a subscription website for free using certain platforms and tools, such as free website builders, free blogging platforms, or free membership plugins. However, you may need to compromise on features and functionality if you are using free tools or platforms.
How Much does it Cost to Build a Subscription Website
The cost of building a subscription website can vary widely, but generally ranges from $5,000 to $50,000 for design and development, $5 to $500 per month for hosting, and a few hundred to several thousand dollars per month for maintenance and support. Factors that impact cost include the size and complexity of the site, the features and functionality required, and the development resources needed.