Digital Subscription Business

How Much Does It Cost To Start A Digital Subscription Business? (In 2024)

•

Updated: July 21st, 2024

Looking to start a digital subscription business?

But curious about:

how much it costs to start a digital subscription business?
what are the typical digital subscription business startup costs?
or the actual cost of starting digital subscription businesses?

Well, we have the data to prove it, supported by real digital subscription businesses and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a digital subscription business?

Based on our data reported by actual digital subscription business founders, the average cost of starting a digital subscription business is between $10 and $10,000.

Additionally, our data shows that the the median startup costs for a digital subscription business are around $1K.

Remember, though, not all digital subscription businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of digital subscription businesses

Real World Examples: How much does it cost to start a digital subscription business?

We asked real digital subscription business founders and business owners how much it actually cost to get started?

Here is what they said:

Will Seippel

Founder of WorthPoint ($500K/month)

"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."

Will Seippel is the founder of WorthPoint Corp., an antiques and collectibles data platform that helps users easily find the value of various items.

Read this case study

Read by 8,732 founders

Jillian Leslie

Founder of MiloTreeCart ($6K/month)

"Our startup costs have been low."

Jillian Leslie is the founder of MiloTree Easy Payments, a SaaS business that helps creators monetize through paid workshops, memberships, services, coaching, and digital products.

Read this case study

Read by 4,753 founders

Haley Ingram

Founder of Coffee and Contracts ($250K/month)

"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."

Haley Ingram is the founder of Coffee and Contracts, a digital marketing subscription service for real estate professionals that provides social media marketing templates and training to enhance their digital presence.

Read this case study

Read by 11,296 founders

Junaid Ansari

Founder of Draftss ($15K/month)

"So the overall cost to setup was something like: Domain ($10) + Landing Page (Made our own) + Contact Form + 2checkout ($0 setup fees) + Tawkto (Free) + Hosting ($15) + G-suite Email ($10) and we were ready with our MVP product."

Junaid Ansari is the co-founder of Draftss, a productized graphic design and frontend code service.

Read this case study

Read by 12,017 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful digital subscription businesses that you can learn from.

Starting a digital subscription business - what you should know:

Starting a digital subscription business can be both rewarding and challenging, and understanding the nuances can help you manage costs effectively and optimize profitability.

Initial Development Costs

One significant expense is the initial development of your platform. If you hire a development team, expect to pay anywhere from $10,000 to $50,000 depending on the complexity and features of the subscription service. Alternatively, using pre-built platforms like Shopify or WordPress with subscription plugins can reduce costs substantially, often bringing the initial setup to around $500 to $3,000.

Marketing and Customer Acquisition

Marketing is another major cost factor. Effective digital marketing strategies are essential for customer acquisition and retention. Expect to allocate a significant portion of your budget here—generally, online businesses spend about 10-30% of their revenue on marketing. If your target for the first year is $100,000 in revenue, plan to spend approximately $10,000 to $30,000 on marketing.

Subscription Management and Payment Processing

Subscription management systems and payment processing fees can add up. SaaS platforms like Chargebee or Recurly charge a monthly fee ranging from $99 to $599, depending on features and usage. Payment processors like Stripe typically charge 2.9% + 30 cents per transaction. If your monthly subscription rate is $20 and you have 1,000 subscribers, payment processing fees alone would be around $580 per month.

Content Production and Licensing

If your business involves content—such as videos, articles, or software—budget for content creation and licensing. Producing high-quality content can cost between $100 to $500 per piece or more, depending on your niche. Licensing additional premium content from third parties may add another $1,000 to $10,000 annually.

Managing these varied costs smartly can shape the financial success of your digital subscription business.

Potential Costs of Starting a Digital Subscription Business

Starting a digital subscription business involves various costs, including technology, marketing, labor, and operational expenses.

Cost Category	Item	Description/Tools	Estimated Cost
Technology	Website Hosting	Providers like AWS, Google Cloud, Bluehost	$10 - $100 per month
	Domain Name	Domain registration fees	$10 - $50 per year
	Website Development & Design	Hire a developer or use platforms like WordPress, Shopify	$500 - $10,000 (one-time or setup)
	SSL Certificate	For secure transactions	$0 - $100 per year
	Subscription Management Software	Platforms like Chargebee, Recurly	$99 - $299 per month
Marketing	Digital Marketing	Online ads, social media, SEO	$300 - $1,000 per month
	Email Marketing Software	Tools like Mailchimp, ConvertKit	$20 - $300 per month
Content & Tools	Content Creation	Writers, designers, videographers	$500 - $5,000 per month
	Graphic Design Tools	Tools like Adobe Creative Cloud, Canva	$10 - $50 per month
	Analytics Tools	Tools like Google Analytics, Mixpanel	$0 - $150 per month
Labor	Employees/Contractors	Salaries for roles like customer support, marketing, developers	$3,000 - $10,000 per month
Legal and Compliance	Legal Fees	Business setup, policy drafts	$500 - $2,000 (one-time)
	Payment Gateway Fees	Transaction fees from Stripe, PayPal	2.9% + $0.30 per transaction
Miscellaneous	Office Supplies	Computers, software licenses, office supplies	$500 - $2,000 (one-time)
	Insurance	Business insurance	$200 - $500 per year