How to Start a Subscription Business: Beginner's Guide

I’ve been thinking about starting a business lately, but I’m still figuring out what I want to do. One thing is for sure—juggling a business with my full-time job isn’t realistic, so I’ve been exploring options that could work for me. After researching different business models and learning what’s trending, subscription businesses caught my attention. What if I could create something that doesn’t need constant attention? The more I think about it, the more it seems like the perfect idea.

I did some research on how subscription businesses work and what it takes to succeed. To access your product or service in the subscription business model, customers pay regularly—monthly, yearly, or however you set it up. And they get their product deliveries or services on the same regular basis. Thus, the subscription seller has predictable income, loyal customers, and the potential to grow.

In this article, I’m going to share what I’ve learned about the subscription business model through my research and the necessary steps to start.

The basics of subscription business models

A subscription-based business has a few primary subscription types:

Service subscription: This model offers ongoing access to services, such as software applications, streaming platforms, or membership services. Each of us has tens of subscriptions to online tools we use every day. And most of those are being billed regularly.
Subscription box: Here, customers receive packages of products, often tailored to their preferences, delivered at regular intervals. Examples include beauty and grooming boxes, fashion and apparel boxes, and food and beverage boxes.
Digital content subscription: This model provides subscribers with access to digital content, such as e-books, audiobooks, online courses, music streaming, and video streaming services.

Your choice for the subscription business type depends on how much time you are ready to invest and what you are most passionate about. For example, if you like hands-on work, and packaging things beautifully, then subscription boxes are your thing. But consider one thing as well, subscription boxes will probably require more upfront investment.

If you are more of a technical creator, then you should choose between service and digital content subscription.

Now let’s go into how to start a subscription business step-by-step!

Identify your niche and target audience

What is your niche?

Your niche specifies your main focus in the subscription-based business. After selecting what type of subscription business to start, identify what exactly to sell. If you are unsure, you can ask yourself these questions:

What am I passionate about?
What problem can I solve?
What’s unique about my idea?

In my case, I know I want to create beauty subscription boxes—it’s something I’m genuinely excited about. I’m passionate about skincare, and my goal is to help women achieve glowing skin using organic products. What makes my idea unique is the personal touch: each woman’s box will be customized to their needs, skin type, and age. This way, every box feels like it was made just for them.

Use this question framework to find your niche and focus.

Who is your target audience?

There is one truth about target audiences: if you think everyone can be your customer, in the end, no one will become your customer. Your product or service cannot be for everyone. Not everyone has the same challenges and desires. A one-size-fits-all solution usually doesn’t go a long way. Let me explain why; when it comes to wants and needs, people have different requirements. Let’s say you’re offering a skincare subscription box. Some people are looking for products specifically for sensitive skin, others want anti-aging solutions, and another group might be focused on vegan, cruelty-free options. If you tried to serve all these preferences in a single box, your message would become unclear, and no one would feel like the box was truly designed for their unique needs.

In my case, my solution is helping women with sensitive skin. Thus, my messaging and products will be completely different from a box designed for teens battling acne or men looking for beard care. Trying to target “everyone” of all ages will confuse people about my services, and I might end up with no loyal customers.

To identify my target audience I start with these questions:

How old is my target audience?
What are their demographics?
What problems do they face?
How do they shop?

With clear answers about what you offer and who you offer it to, you can pass to the next sections on how to start a subscription business.

Research the market

In this stage, you should dig deeper into the market to refine a better strategy and create a better product/service offer. Advanced market research can also help you identify the competition and go beyond customers’ expectations. To give you an idea of the potential in this space, here’s an impressive statistic: the subscription ecommerce market reached $326.44 billion in 2024 and is projected to hit $539.16 billion in 2025—a staggering growth rate of 65.2% CAGR. This is a booming industry with room for innovation and opportunity.

Competitor analysis

To be and stay competitive, you need to know what others in your space are doing. Tools like SEMrush and Ahrefs, are invaluable for studying your competitors’ online strategies. These platforms allow you to:

Analyze competitors’ website traffic and SEO strategies.
Discover which keywords they’re targeting to attract their audience.
Study their pricing models to see how they position their subscriptions.
Track customer feedback by checking online reviews and social media mentions.

For example, if you’re launching a meal kit subscription, you can use these tools to see which recipes or meal plans competitors promote and where they’re getting the most engagement.

Develop your product/service

Once you have identified your niche and target audience, start developing the actual product/service. Whether it is subscription software, a subscription box, or digital content, the development stage is where you start turning your ideas into actual, valuable products. Let’s break it down for each type of subscription.

For subscription software, this is the phase where you start coding, testing, and refining your platform. Focus on functionality that solves your customers’ core problems, and keep the interface simple and user-friendly. Launch a beta version to gather feedback from early adopters and refine your software before the full release.

For physical products, like subscription boxes, this stage is about sourcing. Find reliable suppliers for the materials or products you’ll include. Once you’ve gathered everything, collect your first set of boxes. Use this as an opportunity to test packaging and shipping logistics. A great unboxing experience goes a long way in keeping customers excited about their subscriptions.

The selection of products depends on the type of box you’re creating. For example, my focus is on organic and clean skincare. I plan to include essentials like a cleanser, moisturizer, eye cream, etc. These products will come from trusted brands I partner with. Creating a box with value and a personal touch ensures subscribers return.

For digital content, such as educational courses, fitness programs, or exclusive memberships, focus on creating content that’s engaging, useful, and meeting your audience’s needs. This could mean recording video tutorials, writing eBooks, or setting up an exclusive community platform. Digital products need regular updates to keep subscribers engaged and coming back for more.

Pricing strategy

Pricing is the next big step. Set a price that reflects the value you’re providing while covering all your costs and leaving room for profit. Consider hidden costs, like packaging, shipping, or platform fees if you’re hosting digital content.

You can think of offering multiple pricing tires to attract more customers with various financial capacities. For example, you could have a basic plan for budget-conscious customers and a premium plan with extra features or products for those who want more.

Build a website for your subscription business

It’s time to showcase your product/service and experience starting a subscription business. A professional website is where you start spreading the word about your business. Most often, it is a decisive point where customers choose whether to trust you or not. Even with the best product/service quality, if the website fails to amaze potential customers, you might lose them forever.

One of the easiest ways to create your online presence is with 10Web AI Website Builder. With no prior coding knowledge or experience, you can create a website by describing your business in a few sentences. AI will take care of the rest.

Let’s create a website for your subscription business:

Go to 10Web.io > provide your website’s name > describe it in a few words > click Generate Your Website.
Review the Website name and description.
Click Next > review the website structure that AI’s created.
Click Next > choose the website colors, fonts, and styles.
Click Generate to apply.

Now your website is ready to customize. With the help of an easy drag-and-drop editor, you can intuitively make all the changes you need, add your products/services, tell your story, and make sales.

Logistics and supply management

For subscription boxes, success lies in managing inventory, packing efficiently, and ensuring on-time delivery. To get started, prepare an initial batch of boxes for your first customers. Collecting pre-orders is a smart way to estimate demand and determine exactly how many boxes you’ll need, helping you avoid overstocking or running short.

For ongoing success:

Set up a simple assembly technique to pack boxes efficiently.
Build relationships with suppliers to ensure a steady flow of materials or products for your boxes.
Choose shipping partners wisely to ensure your boxes arrive on time and in perfect condition.

While logistics for access-based subscriptions, like software or digital services, doesn’t involve physical products, it’s just as important. All you need to do here is to ensure delivery and reliability.

Use a dependable platform to manage access to your service. For example, if you’re offering online courses, ensure your hosting platform can handle increased user traffic as your audience grows. Consider 10Web Managed Hosting for speed and security.
Set up systems where new subscribers immediately gain access to content or tools after payment. This will avoid delays and keep them satisfied.
Continuously update your services/products to keep your subscribers engaged, whether that’s adding new content, features, or perks.

Having everything ready for the end users and delivering on time will increase customer satisfaction and return rates.

Marketing and customer acquisition

So, you’ve got your subscription business ready—now it’s time to spread the word and bring in those subscribers. Marketing and customer acquisition are about creating awareness, building trust, and converting interest into sign-ups. Here’s how to do it effectively.

Build brand awareness

Social media: Platforms like Instagram, TikTok, and Pinterest are where you can build visibility. Share engaging content that resonates with your audience—think unboxing videos, customer testimonials, behind-the-scenes looks, or tips related to your niche. For example, if you’re running a fitness subscription, post workout ideas or healthy recipes to draw people in.
Content marketing: Create valuable content that educates or entertains your audience. Start a blog (you can do this on your AI-built website), post how-to videos, or share downloadable guides. This will position you as an expert in your field and build trust with potential subscribers.
Influencer partnerships: Collaborate with influencers who share your target audience. A skincare box, for instance, could partner with beauty influencers who can showcase your products to their followers.

Drive organic traffic with SEO

Search engine optimization (SEO) is your ticket to attracting customers without relying solely on ads. By optimizing your website and content, you can rank higher on search engines and draw in organic traffic.

Target the right keywords: Use tools like Google Keyword Planner or Ubersuggest to find search terms your audience is using. For example, a meal kit subscription might target “easy weeknight dinner ideas” or “healthy meal delivery.”
Optimize product pages: Include detailed descriptions, high-quality images, and relevant keywords on every page of your website.
Blog consistently: Write about topics related to your subscription—this keeps your site fresh and boosts your authority in your niche.

Conclusion

Starting a subscription business is a great way to earn extra money or turn it into a full-time income. In this guide, we covered all the necessary steps for starting a successful subscription business–from identifying what you want to sell to delivering the end product. The subscription model succeeds by providing consistent value and gaining loyal customers, making it an excellent choice for long-term growth.

Ready to take the next step? Build your subscription business website quickly and easily with 10Web AI Website Builder. It’s the only tool you will need to create a professional online presence and start growing your subscriber base today. Don’t wait—your subscription business can start now!

FAQ

Is a subscription business profitable?

Subscription businesses can be highly profitable due to the recurring revenue model. They offer predictable income streams and opportunities for customer loyalty. However, profitability depends on factors such as customer acquisition costs, retention rates, and the value provided to subscribers. To succeed, you should both attract new customers and keep existing ones satisfied.

How do I set up a subscription service business?

Setting up a subscription service business involves several key steps. First, identify your niche and target audience, then develop your product or service. Next, create a website to showcase your subscription, implement a reliable billing system, and establish logistics for delivery or access. Finally, focus on marketing to acquire customers and continuously improve your offering to retain subscribers.

How much does it cost to start a subscription box business?

The cost of starting a subscription box business can vary widely depending on factors such as product sourcing, packaging, and initial inventory. Startup costs can range from a few thousand dollars for a small, niche to tens of thousands for more complex or larger-scale operations. Key expenses include inventory, packaging materials, shipping costs, website development, and marketing. It’s important to factor in ongoing costs as well.

How profitable are monthly subscription boxes?

Monthly subscription boxes can be quite profitable. Profit margins typically range from 40% to 60%, though this can vary based on the niche and pricing strategy. The key to profitability lies in efficient operations, smart sourcing, and strong customer retention. Successful subscription box businesses often see increasing profitability as they scale and optimize their processes over time.

How to package and ship subscription boxes?

Choose packaging that protects your products and creates an appealing unboxing experience. Consider eco-friendly options to appeal to environmentally conscious consumers. Establish efficient packing processes to handle volume, and partner with reliable shipping carriers. Implement inventory management systems to ensure timely fulfillment, and consider offering tracking information to enhance customer satisfaction.