It seems like everything is going subscription-based these days.

From software like Adobe Creative Cloud, Microsoft 365, and ClickUp to tools like Canva, ChatGPT, and stock photo services. From learning platforms like Teachable and Kajabi to entertainment like Audible and Netflix. Even your favorite writers and artists have jumped on board with Substack and Patreon.

Heck, the car wash down the street from me just adopted a subscription model (one wash per month for the bottom tier, up to one wash a week for the top!).

So what’s driving this shift? And more importantly… is a subscription business model right for YOUR creative business?

That’s exactly what we’re digging into today. I’ll walk you through the compelling business case for subscriptions AND the real operations and requirements needed to make it work. By the end, you’ll be able to weigh the benefits and costs so you can decide what’s right for you.

Let’s dive in!

Why Is Everything Going Subscription-Based? The Business Case

There’s a reason subscription models for creatives (and really, all businesses) have become so prevalent. Businesses find the predictability, stability, and greater profit potential incredibly appealing. 

Here’s why:

It Makes the Sale Easier

Subscriptions vs one-time sales: this is where psychology really comes into play.

Subscriptions are viewed as more affordable. People are more likely to think they can afford and happily pay $7/month than $80 (even though that’s a one-time charge). It’s the psychology of pricing at work.

They think: I spend that much on my morning latte. I can afford that. Plus, I’ll just cancel when I don’t need it anymore.

The reality is, with a subscription they’re less likely to actually cancel. That’s why many subscriptions start with a free month or special deal to get you hooked and keep you as a member long after that initial period.

Creates Steady and Predictable Cash Flow

This is HUGE. With a subscription model, you know how many subscribers you have at any given time, what they’re paying, and when their payments are due. Even with the fluctuations of cancellations and new sign-ups, it’s often way more predictable than the ebb and flow of one-off sales.

This makes it easier to plan for the future and make sound, strategic decisions because you know what finances you’re working with, the size of your audience, and what you’re expected to deliver.

Builds Consistency

Not only do you have a better idea of cash flow, but you know what you need to do to fulfill the promise to your subscribers each day, week, or month. The work, tasks, and deliverables can be systematized, creating a very consistent day-to-day business model.

Subscriptions Are Scalable

As part of a subscription, it’s understood that it’s one product or service meant for a group. You can create greater impact and deliver to a larger audience without the nuances and complexities of customizing for any one person. This is why the membership business model is so appealing. You’re serving many without the overwhelm of individual customization.

Higher Customer Lifetime Value

The customer lifetime value (CLV) tends to be higher with subscription models than with one-time sales. Why? Because people pay for it as long as they remain a member—whether they use it or not.

And let’s be honest, who hasn’t had a subscription they forgot to cancel and ended up paying for long after they would have made a decision to purchase it?

Or, if they ARE using it (and we truly hope they continue to actively use it!), your business keeps making money from it beyond what they would have paid for a one-time purchase price.

It Fosters Brand Loyalty

Because subscribers are interacting with you and your brand on a regular basis, it fosters a sense of connection. It keeps you top of mind and keeps them coming back. A well-run subscription model is great for customer retention AND creating brand advocates!

The bottom line? The subscription business model offers predictability, stability, and greater profit potential. It’s a pretty compelling case.

But here’s the thing… 

Just because subscriptions work well for SOME businesses doesn’t mean they’re right for EVERY business (or every creative entrepreneur).

The Real Operations and Requirements Behind a Subscription Model

Before you jump in headfirst, let’s talk about what it actually takes to fulfill a subscription model. Because there’s more to it than just sitting back and collecting money each month.

Continued Investment

You’ll likely need to pay for some sort of platform to manage your memberships and subscriptions. This can be offset by the fees, but it’s at least one other platform or software you’ll need to purchase, manage, and integrate into your operations.

Increased Need for Timely, Effective Customer Service

People will have questions. They’ll get locked out of their accounts. Their payments will fail. They’ll have issues finding or accessing things.

All of these are issues that you (or a team member you may hire just for this) will need to troubleshoot in a timely manner. It’s part of having people pay for access. And it’s not always fun, but it is absolutely 100% necessary!

Constant Output

People are paying to be part of your subscription with an expectation of what they’re getting for that money.

You have to deliver on those promises consistently, or you’re going to have a lot of unhappy subscribers and could end up in some trouble.

What does that look like? It depends on what you’re offering:

• Access to a new article each week
• Exclusive content they can’t get anywhere else
• A product landing on their doorstep each month
• A new batch of designs to leverage each season
• Feedback on their work

You get it—subscription models can be lots of things!

The key is this: whatever you promise, you have to show up and deliver. Every single time. No exceptions.

Increased Communication

People are paying for access. When something changes or things go awry (which WILL happen!), you need to communicate with your people. This is customer service in many ways, but it goes beyond that. You’re a leader, and you need to communicate with those who have joined.

There Is a Level of Pressure

As you can see above, there’s more to it than just sitting back and collecting money each week, month, or year. It’s essentially a contract you have with each and every member, which can mean the stakes are a bit high.

You have to not only fulfill your end consistently and with quality, but you also have to navigate platforms, issues, situations, and manage a subscriber base of real people on a very regular basis.

And if your subscription requires you to show up personally (whether that’s answering questions in a community, providing feedback on work, hosting live calls, or sharing new content on a schedule) you need to build that into your life and business operations. This could impact when you can take time off, how you plan vacations, and how much flexibility you actually have in your day-to-day schedule.

This can be demanding. It can be time-consuming. And it can throw you a curveball when you’re not expecting it. That’s just life in this kind of business model.

So… Is a Subscription Model Right for You?

At the end of the day, only you know what’s right for your creative business.

There are some seriously major benefits to the subscription model! But there are also pressures and logistics that grow from serving a subscriber audience. You have to weigh the benefits and costs to decide what’s right for you.

Here are a few questions to help you decide:

• Can you commit to consistent, regular output? If delivering weekly, monthly, or even daily content or products feels overwhelming, this might not be your season for subscriptions.
  
  
• Are you prepared for increased customer service demands? Do you have the time (or team) to handle questions, tech issues, and member needs promptly?
  
  
• Do you have the systems in place? A project management system and streamlined operations will be your best friends here.
  
  
• Does your offer make sense as a subscription? Some products and services naturally lend themselves to recurring revenue. Others? Not so much.

If you DO decide to go with a subscription model, there are so many options that work for creative businesses. It depends on you, your strengths, your capacity, and what you like to do. The possibilities are endless!

But the backend of your business needs to be set up to handle it. And it may require things from you that you are or are not willing to do, give, and commit to.

Commitment is the big piece.

So weigh it all out. Consider the benefits and the costs. And then make the decision that’s right for YOUR unique business and lifestyle.

Because at the end of the day? That’s what building a sustainable creative business is all about—designing something that supports the life and career of your dreams, not one that runs you into the ground.

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Ready to build a business model that actually works for you? 

Whether you’re considering subscriptions, one-time offers, or a hybrid approach, I’d love to support you. Check out my coaching services or explore my free resources to start building a business you’re excited to dive into every single day.