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Subscription services offer an easy method for creators to make money from their efforts and generate an income that is recurring and passive. It is a great option for software services, membership services, online course collections, coaching services, consulting firms, and many others. 's e-commerce platform allows you to create and personalize a subscription service in 4 simple steps.
How Does Subscription-Based Pricing Perform?
So how does a subscription service operate? Instead of making one payment to purchase a product or service, customers will make recurring payments--often to access a higher quantity of content for an affordable price in comparison to the purchase price upfront. There are several types of subscription models that are available.
- Unlimited Subscription: Perhaps the most common type of subscription that allows customers to sign up for a recurring service that continues to renew until the customer can cancel.
- Limited Subscriptions: Most often employed to develop payment plans, limited subscriptions are charged recurring fees for a specific amount of time.
- The Free Trial Option: could give a trial at no cost to improve confidence when buying your product by letting interested customers try the service for free. Why should you offer a free trial? Researchers from the University of Washington tested the effect of these promotional offers. They found that 7-day free trials increase customer retention by 6.4% and increase a subscription's revenue return by 7.91 %.
- Paid Trials: Do you'd like to provide your customers a way to try your services and a discounted rate? The paid trial could be an answer you've been searching for! The paid trial feature is also a reverse option, letting you choose a greater price upfront before gaining access to an affordable subscription rate. Higher upfront trial fees are typically used by companies for a way to pay off set-up expenses and the onboarding process.
supports all of these subscription models to help online sellers design their perfect subscription service. Read on for our 4-step procedure for developing a recurring subscription model, either with or without trial. Watch the video below to see co-founder, Scott Moran, builds an online membership service that is mock-up for an online online course in the guitar training industry.
Subscribe Step 1: Add an Original Product
The Products tab of your account, select the + New product button. You can follow the on-screen guidance to fill out the form, including your product's name and description.
Subscription Step 2: Recurring Pricing
Within the Pricing Type drop-down menu, select "Recurring." Next you can set the terms of your subscription:
- Subscription Price The default price of your subscription or membership service.
- The Recurring Period can be set to set the subscription to renew weekly, monthly, quarterly and annually. The duration of the subscription reflects how often customers are being charged.
Subscription Step 3 Free Trial Time
If you choose not to offer a subscription trial, simply leave the trial Period switch off. However, if you choose to add a trial you will have two options:
- Free Trial: Switch the Trial Period switch on, then select Free Trial to give your customers free access to your membership. It is then possible to choose the length of time that customers will be able to access the trial before making their first payment is made.
- Paid Trial Paid Trial: Turn the Trial Period to on, and then select Paid Trial to include the cost of a trial period upfront. After that, you can enter the price you want to pay for your first trial and specify how long you'd prefer this trial to last.
Subscription step 4: Create Product
Once you finalize your subscription details, click Create Product. Clicking this button will direct you to the dashboard for your product, where you can build your sales website, modify the product's details, pick your preferred payment method before launching the subscription.
How do I manage my Customers' Subscriptions?
It automatically creates a portal on which customers can easily manage their subscription. Yet, it still puts you in the driver's seat for your business, giving you the ability to modify which subscription features you extend to your customers.
- Self-Cancellation feature: You are able to enable the self-cancellation feature when you wish to let subscribers to cancel their subscription at any point. This feature will save you the hassle of preparing when a customer wants to cancel or edit their subscriptions.
- Subscription Saver: what happens if customers don't correct their payment details? 's Subscription Saver can help! Included in Scale and Enterprise memberships, this feature will automatically get working in notifying and recovering customers whose subscription charges are denied by their payment method. The Subscription Saver will help to avoid losing subscribers (and revenue) and also avoid from the stress of sending out an incessant email to your customers.
- Subscriber Charge Reminder You are able to choose whether or not to remind subscribers about the coming renewals of their memberships using's Subscription Charge Reminder.