Business Idea

Start A Digital Subscription Business

About

Starting a digital subscription business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell digital subscription, or selling digital subscription online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a digital subscription business ➜

Key stats

market size
$4B
revenue (monthly)
$500K
starting costs
$16.5K
gross margin
30%
avg product price
$25
time to build
9 months
business model
Media Business & Subscriptions

About

Starting a digital subscription business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell digital subscription, or selling digital subscription online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a digital subscription business ➜

Key stats

market size
$4B
revenue (monthly)
$500K
starting costs
$16.5K
gross margin
30%

 

avg product price
$25
time to build
9 months
business model
Media Business & Subscriptions

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $600 $4,700
Software Expenses $150 $2,794
Advertising & Marketing Costs $0 $3,000
Other Expenses $0 $800
Total Startup Costs $1,517 $31,544

Successful Businesses

Business URL Rank
WSJ Subscription subscription.wsj.com #419
WorthPoint Corporation worthpoint.com #1,768
Nashville Lifestyles nashvillelifestyles.com #459,869
My Nashville Magazine mynashvillemagazine.com #8,819,042

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Rewarding work Starting a digital subscription business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Traffic to your website A digital subscription business gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet or get to work with for your digital subscription business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your digital subscription business becomes an integral piece of their every day lives.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A digital subscription business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your digital subscription business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the digital subscription business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a digital subscription business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a digital subscription business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Word of mouth

    The most tried and true way to grow a digital subscription business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 2

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to digital subscription business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.