Subscription Services: The Game-Changing Business Model for Artisans and Makers

For indie creators, the internet is the Wild West of commerce. The hard and fast rules of brick and mortar selling, traditional advertising, and customer relationships go completely out the window when it comes to the World-Wide Web. And though platforms like Etsy, Society6, and Tindie allow artists and makers to get their foot in the door to the digital marketplace, creative entrepreneurs may have a better alternative for building their online business.

Subscription Services: The Next Frontier

In the age of Netflix and Blue Apron, subscription services are everywhere. From entertainment to clothes to the meals we eat, these services play a huge role in our day-to-day lives. Where growth is concerned, subscription commerce has tripled every single year since 2011, generating more than $5 billion in 2014 alone. And for artisans and creators struggling with the unpredictability of selling their products, this juggernaut sales model may just hold the key to launching a successful business.

So, if you’re considering adopting the subscription service model for your one-of-a-kind products, here are three ways that making the change would transform your business and brand.

1. No More Guesswork: Forecast Your Sales

Whether up or down, unpredictable sales pose a major challenge to makers when it comes to selling their products long-term. Sure, unreliable income is an obvious hurdle when cash flow is irregular, but logistical nightmares (like surprise restocking or rush orders) can completely derail an otherwise promising business venture for creators.

When your customers sign on for a subscription service, their product consumption establishes a reliable sales cycle. One-time purchases transform into monthly sales – and suddenly, sellers are better equipped to predict their order numbers, income, and schedule from month to month. The ability to forecast monthly sales is paramount for artists who, compared to other sellers, may need more resources to deliver a final product. Reducing uncertainty offers makers both peace of mind and the insight to develop meaningful, data-driven strategies for their growing business.

The ability to forecast monthly sales is paramount for artists who, compared to other sellers, may need more resources to deliver a final product.

2. Create a Guaranteed Channel of Communication

In the face of ever-changing social media algorithms and big-brand advertising, relying on audiences to see and engage with your online messaging is a gamble. Even traditional avenues like email are often compromised by auto-filing inboxes and roll-up applications that can ensure your messages go unread and ultimately deleted.

Alternatively, the subscription business model offers artists and makers a near-100% guarantee that any physical promotion they send out is delivered to the home and hands of their customers. Flash sale announcements or discount coupons are an easy way to upsell and cross-promote your entire product line to make sales on top of customers’ monthly subscriptions. For creators who may not have the resources to make advertising a top priority in their business plan, every opportunity to talk directly to your customers is critical.

The subscription business model offers artists and makers a near-100% guarantee that what they create will be delivered to customers.

3. Elicit Regular User-Generated Content to Build an Audience

Without question, user-generated content (“UGC”) is a key component to developing and converting an audience. In fact, according to a Crowdtap and Ipsos Media CT study, millennials trust UGC 50% more than any other traditional media. And while artisans and makers have price on their side when it comes to organic UGC, one-time purchases here and there are unlikely to deliver the volume of trustworthy customer content required to exponentially grow your audience.

Alternatively, recurring sales from subscription services cultivate a customer base that will regularly market on your behalf. Need convincing? A search for #birchbox on Instagram yields a whopping 400,000 tagged posts. Not impressed? Fans of the makeup sample box have banded together for an even more specific tag, #birchboxbrag, where they happily snap a pic of each month’s goodies and share to their networks. That type of compounded social sharing is the result of enthusiastic, repeat customers that are eager to develop an ongoing relationship with the brand they invite into their home on a monthly basis.

It’s authentic, it’s powerful, and it’s the kind of viral marketing that will grow your customer base on its own, freeing you to focus on your product rather than marketing.

Recurring sales from subscription services cultivate a customer base that will regularly market on your behalf.

Ready to Take the Plunge?

If repeat sales, strong customer relationships, and low-cost viral marketing seem like the kind of changes that could take your artisanal business to the next level, adopting the subscription service model might be right for you.