Residual Income from a Subscription Service

Written by: burt
Date: August 14, 2006
Filed under: Case Studies
Trackback

I have never really explored providing a subscription service properly, as the one time I did create a subscription service, I had to close it down after a month or so due to me not being able to spend the time to run it.

And there lies the problem - a subscription takes time to manage and run. It's not like an AIS where you can simply sell a product and that's the end of it.

However, the plus side is that a subscription service means ongoing income each and every month - as well as the opportunity to upsell products and services.

With this in mind, I have once again, started up a new subscription service in order to see the potential as well as learn a little bit about the type of people who would subscribe.

I've priced it cheaply at just $10 per month, and I estimate I will be spending around 2 to 3 hours per month actually providing the service (a couple of templates per month). I also intend to provide good bonuses (purchased resell rights of scripts and graphics and so on) each month as well, so really need around 25 subscribers to break even…

If you have not already guessed, the subscription service is aimed at users of the Smarticle Site Building Program. I'll update you all in a month, so that you can see how it goes.

Comments

  1. Comment by burt — August 16, 2006 @ 2:29 pm

    15 subscribers so far. Have not really advertised it, other than in one forum so I'm quite pleased with the progress so far.

  2. Comment by burt — September 30, 2006 @ 11:38 am

    Since starting this, I've managed to get myself 49 subscribers, of which 3 have subseqently cancelled.

    I increased price from $10 to $15, and am about to increase price once again from $15 to $20. Of course, those who got in at a lower price, remain at the lower price…

    I am still not breaking even, as I upped the quality of the offering. To fully break even I need 78 subscribers. I'm going to run the service as-is for a few more months, and attempt to get as close as I can to break-even - if I am still nowhere near, I'll have to have a long think about continuing to offer the service as it is, or reducing my costs a bit…

    In no way is this an AIS, but it's quite nice to see a regular income from a subscription service.

Sorry, the comment form is closed at this time.


Did you enjoy reading this?
Please consider subscribing to our RSS Feed!


Subscribe by Email
Get notified by email every time we update this Blog!


 

Subscribe (RSS)

Recent Comments

Sponsored By

What Others Are Saying