Are you a creator exploring ways to earn a recurring income? Embracing a creative pursuit is empowering emotionally, but is it enough to earn a living?
If you are one of those
creative souls looking to take your profession to the next level, a
subscription-based platform might be all you need! The strategic
revenue-creation approach is great for connecting with your buzzing community,
but it requires a clear strategy!
In this blog, we walk
you through all the steps to create a subscription-based platform for content
creators.
Let's jump right in!
What are the Benefits of Creating a Subscription Platform?
The subscription-based
economy is expected to reach the 1.5 trillion mark by 2025. Moreover, subscription platforms like
Patreon, Substack, and Kajabi are adding the creator economy narrative!
But before you delve
into how to make an
app like Patreon or similar
platforms, let's explore the benefits of creating one!
● Predictable Source of Income
The subscription-based
model empowers both creators and members. While members gain access to a
product or service, creators earn a steady source of income! A win-win indeed!
● Reduced Customer Acquisition
Cost
The average customer
acquisition cost is five times more than customer retention. By saving your
time and efforts on marketing or chasing a new prospect, you can scale down
your overall budget.
● Create Customer Loyalty
By nurturing customer
relationships through subscriptions, businesses can create a loyal customer
base.
● Increased Customer Retention
and Lower Churn Rate
Churn is real and could
be the biggest obstacle to growth. With the increased engagement and value from
subscriptions, customers stick with your business for a long time. Moreover,
60%-70% more revenue can be expected from an existing customer.
How to Create a Subscription-Based Platform?
Let's explore the steps
to build a subscription-based platform!
Step 1: Choose a Profitable Niche
The first step to
creating a subscription platform is identifying a lucrative niche. You could
create a platform for music artists, celebrities, influencers, podcasters,
video creators or a platform like Patreon for creators of all kinds.
Consider your expertise,
skills, experience, and interests while discovering your big subscription idea.
Finally, validate your niche by ensuring its demand and profitability!
Step 2: Perform Business Analysis
An essential aspect
before scaling your business idea is to ensure it is a market fit!
Ask the following
questions to gain a clear perspective of your business:
● Have you defined
a buyer's persona based on the ideal target audience?
● Does your
platform edge ahead with a unique business proposition?
● Does it align
with current marketing trends and buying patterns?
Step 3: Determine Your Business Model
Your business model sums
up your products, target market, expenses, and profits. In simple words, a
business model is how your platform drives money!
These are some prominent
business models in the creator economy:
● Tiered
subscription models
● Ad-revenue model
● Sponsorship
models
● Freemium model
● Merchandise
● Affiliate
Marketing
Step 4: Design Your Subscription Platform
Once you have determined
the business model, identify your website's core features and functionalities.
Create a clean and intuitive design to deliver a great platform experience!
Listed below are the
must-have features for creating a subscription platform:
● Customer
Subscription Management
● Payment Gateway
● Detailed
Analytics and Reporting
● Third-party
integration and compatibility
What kind of content do
you wish to offer? Does it include courses, workshops, videos, discussion
boards, or live events? Based on the content delivery and format, design your
platform.
Step 5: Build Your Subscription Platform
Finally, it's time to
start choosing a platform for your subscription platform!
You can host your
subscription services on all-in-one platforms like Kajabi, Podia or Thinkific.
However, it has a few caveats, such as lack of ownership, monthly payments,
etc.
If you’re planning to
develop a custom solution, it isn't always feasible. Developing a platform like
Patreon requires around $40,000 to $60,000 approximately.
A better approach is a
Patreon clone script like Fanso that reduces
the cost and time required to build a subscription-based platform. From
subscription management to a robust analytics dashboard, the platform script
has all the essential features for creating a robust subscription platform!
Step 6: Market Your Subscription-Based Website
Well, you might have a
comprehensive subscription platform, but what if customers don't know it
exists? Leverage the right marketing strategies to increase visibility, drive
conversions and create hype around your platform!
Consider the following
marketing strategies for outreaching the maximum clients:
● Share testimonials, behind-the-scenes content, and product
teasers on social media
● Invest in paid ads to increase product awareness
● Build an email list to send newsletters and promotional mail
● Host content, polls, and giveaways on social media or your
website
● Collaborate with micro-influencers to widen outreach
Step 7: Monitor the Platform Growth and Scale
The last step is to keep
a pulse of how well your platform is performing and whether it is experiencing headwinds
or tailwinds in its growth trajectory!
Look out for the
following key metrics to track its performance:
● Engagement
levels
● Annual &
monthly recurring revenue
● Churn rate
● Enrollment rate
● Customer
acquisition cost
● Customer lifetime value
The Bottom Line
Creating a subscription
platform is certainly a smart move! From recurring revenue to high engagement
levels and reduced churn rate, it touches all the keynotes! Rather than falling
for the whims and fancy of social media algorithms or expensive SAAS platforms,
leverage a clone script for a smooth development and launch!
