How to Start a $10K Per Month Subscription Business

Are you tired of chasing unpaid invoices and following up with customers who are slow to pay? This article explores the concept of residual income and introduces the subscription business model as a potential solution.

Why Subscriptions?

Subscription businesses offer a major advantage: recurring revenue. Imagine collecting income each month without having to chase down a single payment. Subscription services are everywhere these days – Netflix, Amazon Prime, Apple Music – the list goes on. The subscription economy is booming, projected to reach a staggering $1.5 trillion by 2025! Wouldn’t you like to be a part of it?

Benefits of Recurring Revenue

• Predictable Income: Subscription fees provide a steady stream of income, making financial planning much easier.
• Reduced Churn: Once customers find value in your subscription, they’re more likely to stick around.
• Customer Loyalty: Subscription models foster loyalty as customers appreciate the convenience and value they receive.

Examples of Subscription Businesses

The possibilities are endless! Here are a few examples to spark your imagination:

• Mobile Car Wash: Offer a subscription for regular car washes delivered right to the customer’s doorstep.
• Online Coaching: Share your expertise through a subscription service that provides coaching, tips, and access to a supportive community.
• Subscription Box: Curate and deliver a box of goodies related to a specific niche, like beauty products, pet supplies, or arts and crafts.

Ready to Get Started?

Here are the key steps to launching your own subscription business:

1. Find Your Niche: What are you passionate about? What skills or knowledge can you offer? Identify a niche market with a need you can fulfill.
   
   
2. Choose Your Platform: There are many platforms available to help you manage subscriptions, such as Skool.com, Substack, and Stripe.
   
   
3. Create Value: Develop a compelling offer that provides ongoing value to your subscribers. This could be exclusive content, access to a community, or special discounts.
   
   
4. Price Your Plan: Set a price that reflects the value you deliver and is competitive within your chosen niche.
   
   
5. Market Your Business: Spread the word! Utilize social media, blogging, and SEO strategies to reach your target audience.

Subscription Model #1: Mobile Car Wash

The subscription model is a powerful business strategy that ensures a steady revenue stream and builds customer loyalty. One innovative application of this model is the mobile car wash service. By examining Jason Derulo’s Rocket Car Wash subscription model, we can glean valuable insights into launching and sustaining a successful mobile car wash business.

Case Study: Jason Derulo’s Rocket Car Wash Subscription Model

Jason Derulo’s Rocket Car Wash offers a subscription-based service that leverages convenience and quality to attract customers. The service employs a digital platform to manage subscriptions and schedule appointments, ensuring a seamless customer experience. Derulo’s model highlights the importance of a well-structured subscription service in attracting and retaining customers.

How to Implement a Mobile Car Wash Subscription Service

Starting a mobile car wash requires initial investments in equipment and a vehicle. Essential items include:

– Pressure washer: A high-quality pressure washer is crucial for efficient cleaning.

– Van: A reliable van is necessary to transport equipment and staff.

– Water tank: A sizable water tank ensures you have enough water for multiple washes without needing frequent refills.

Target Market: Gated Communities

Gated communities are an ideal target market for a mobile car wash service. Residents in these communities often seek convenient, high-quality services and are willing to pay a premium for them. Targeting such communities can lead to a steady and lucrative customer base.

Pricing Strategy

A well-thought-out pricing strategy is vital. Consider offering a discounted initial rate to attract new customers. Implement subscription tiers to cater to different needs and budgets:

1. Basic tier: Monthly exterior washes
2. Standard tier: Monthly exterior and bi-weekly interior cleans
3. Premium tier: Weekly full-service washes, including waxing and detailing

Subscription Platform Recommendation

Utilizing a subscription management platform like Everwash can streamline operations. Everwash handles billing, scheduling, and customer management, allowing you to focus on delivering top-notch service.

Service Details

Offer various service frequencies to meet different customer needs:

• Frequency: Weekly, bi-weekly, or monthly
• Service scope: Options for exterior-only or comprehensive interior and exterior cleaning

Staffing

Hire a small, dedicated team to start:

• Driver/Washer: Responsible for transporting equipment and performing the washes
• Assistant: Helps with detailed cleaning and customer interactions

Customer Acquisition Strategy

Pitching your service to gated communities can be highly effective. Organize demonstrations and offer limited-time discounts to incentivize sign-ups. Partner with community management to promote your service through newsletters and events.

Revenue Calculation

Calculate revenue by multiplying the number of customers by the subscription fee. For instance, with 100 customers paying $50 per month, the revenue would be $5,000 monthly.

Expense Calculation

Consider all recurring expenses:

1. Loan payments: For the van and equipment
2. Salaries: For staff
3. Gas and maintenance: For the van
4. Miscellaneous: Cleaning supplies and insurance

Profit Calculation

Subtract total expenses from total revenue to determine profit. For example, if monthly expenses are $3,000, the profit would be $2,000.

Scaling Strategy

As the business grows, reinvest profits to expand:

Adding more vehicles: To cover a wider area and serve more customers

Upselling car care products: Offer premium products like waxes and polishes for an additional fee

If you plan and execute a mobile car wash subscription service right, you can build a profitable business. This model brings in a steady stream of revenue and keeps customers happy with regular, high-quality service.

Monetizing Your Passion:How to make money on Skool.com ?

Skool.com is an online platform designed to help creators build and monetize communities. By offering tools for creating engaging content, facilitating interaction, and hosting events, Skool.com allows you to turn your knowledge and skills into a profitable venture. Here are some ways to make money on Skool:

1. Online Courses: Sell educational content directly to your community.
2. Membership Sites: Offer exclusive content through a subscription model.
3. Coaching Services: Provide personalized coaching and consulting.
4. Affiliate Marketing: Promote relevant products and earn commissions.
5. Sponsored Content: Collaborate with brands for paid partnerships.
6. Digital Products: Sell e-books, templates, and other digital resources.
7. Donations: Accept support from your community through donations.
8. Ad Space: Sell advertising space within your community.

But all this is possible if you’ve taken the time to build a community. Skool is still a young platform, full of possibilities. While there’s still time, go for it!

Building Your Paid Community on Skool

Finding Your Focus:

1. Identify a Niche: Choose a topic where people need ongoing solutions, like fitness or personal finance. This ensures long-term engagement.
2. Build Your Expertise: Identify a skill or area of knowledge you excel in. It can be health, music, woodworking, or social media marketing – something you’re passionate about teaching.

Building Your Community on Skool:

1. Create Your Community: Sign up on Skool and create a group. This is your online space for building and engaging with your audience.
2. Develop Valuable Content:
   • Content Creation: Establish yourself as an authority by creating consistent and valuable content like blog posts, newsletters, YouTube videos, or ebooks.
   • Engagement: Keep your community active by posting a variety of content regularly, including articles, videos, and discussions.
3. Attract New Members:
   • Mini-Product: Create a low-priced mini-product, like an ebook or a short course, to introduce your expertise to potential members.
   • Free Bonuses: Offer free resources or incentives to encourage joining your paid membership.
   • Follow-up Strategy: Implement an engaging email sequence to nurture leads who haven’t joined yet.
4. Building Tiers:
   • Cater to Different Needs: Create multiple subscription tiers with varying benefits and costs.
   • Value Proposition: Each tier should offer clear value, incentivizing members to upgrade for additional benefits. Here are some tier ideas:
     • Basic: Exclusive content like early access to videos or blog posts.
     • Higher Tiers: Personalized coaching sessions, downloadable resources, or access to a private online community.
5. Content Engagement Strategy:
   • The lifeblood of your community is the content you deliver. Tailor it to your niche. For example, a health coach might offer workout routines, healthy recipes, and live Q&A sessions.
   • Consistency is Key: Schedule regular content drops to keep your members engaged and coming back for more.
6. Promote Your Community:
   • Build an Audience: Use other platforms like YouTube, TikTok, or a blog to build an initial audience interested in joining your Skool community.
   • Welcome New Members: Create a pinned announcement post with a video in your Skool group to welcome and orient new members.
7. Engage and Support Members:
   • Active Participation: Be generous with your help! Answer questions, participate in discussions, and provide valuable insights to foster a supportive and active community.
   • Live Sessions: Host live calls, coaching sessions, and Q&A events to offer direct support and build deeper connections with your members.
8. Monetizing Your Community:
   • Paid Memberships: Consider creating a paid Skool community with exclusive content, coaching calls, and other valuable services.
     

Why Do Members Pay ?

Members invest in your community for several reasons:

• Direct Access to Expertise: Gain insights from a trusted source in the niche.
  • Supportive Environment: Connect with like-minded individuals for support and encouragement.
• Exclusive Content & Events: Access premium resources, events, and insider information.
  • Targeted Advertising: Attract more members by promoting the unique benefits of your community through targeted advertising if needed.
    

Focus on building a genuine connection with your audience through relatable content and communication. This fosters engagement and interest in your paid offerings.

Subscription Box Business – “Framed by Sarah”

Sarah identified a gap in the market – a lack of personalized and stylish framing options. Her “Framed by Sarah” subscription box delivers a unique concept: each box contains a selection of creative designs alongside high-quality, customizable frames. This combination of surprise and personalization has proven to be a recipe for success, generating significant revenue for Sarah’s business.

Beyond the Box: Unveiling Product Offerings

The beauty of subscription boxes lies in their versatility. Sarah offers various box options catering to different preferences. T-shirt boxes might feature trendy graphic tees, while monogram boxes offer personalized items like mugs or tote bags. For those who can’t decide, combo boxes provide a mix of products across different categories. By catering to a range of interests and offering customization options, Sarah ensures her subscribers keep coming back for more.

Building Your Box Empire: Steps to Launch

Ready to unleash your inner curator? Here’s a roadmap to launching your own subscription box business:

1. Unearth Your Niche: What excites you? Are you passionate about beauty products, pet supplies, or arts and crafts? Identify a niche with a dedicated audience and a clear need you can fulfill.
   
   
2. Choose Your Platform: Subscription platforms like Subbly, Cratejoy, and Patreon streamline the signup process for your customers. Payment processing platforms like Stripe simplify financial transactions. Research and choose a platform that aligns with your business model.
   
   
3. Building a content library : Whether written, visual, or video-based, attracts potential subscribers and showcases your expertise. Blog posts about styling tips for “Framed by Sarah” boxes, for example, would resonate with her target audience.
   
   
4. Price it Right: Factor in product costs, packaging, shipping, and platform fees to determine a profitable subscription price. Analyze competitors’ pricing models and position yourself competitively within your niche.
   
   
5. Spread the Word: Utilize social media platforms like Instagram and Pinterest to showcase your beautiful boxes and curated products. Create engaging video content on YouTube or TikTok to generate buzz. Optimize your website and blog posts for search engines (SEO) to attract organic traffic.
   
   
6. Deliver Value, Consistently: The key to retaining subscribers is consistent value delivery. Ensure your boxes are packed with high-quality products, surprise elements, and maybe even a handwritten thank-you note. Create a sense of anticipation and excitement for each new box arrival.

The Power of Recurring Revenue: Unlocking Financial Freedom

Subscription boxes offer a unique advantage – recurring revenue. Each subscriber represents a predictable income stream, allowing you to forecast your finances more effectively. As Sarah’s business demonstrates and others, consistent customer acquisition and retention can lead to significant revenue generation. By focusing on value and customer satisfaction, you can create a thriving business that works for you, not the other way around.