How to create a business model based on subscriptions and memberships?

In today’s business world, subscription and membership-based business models have gained popularity. These models offer an effective way to generate recurring revenue and long-term customer loyalty. In this article, I will walk you through the steps to create a successful business model based on subscriptions and memberships. We will solve the search intent of those users who want to understand what kind of business model subscriptions and memberships are, as well as the difference between the two in terms of loyalty. Join me on this informative journey and discover how to make the most of this business model.

What are subscriptions and memberships?

Before we dive into how to create a business model based on subscriptions and memberships, it is important to understand exactly what they are.

Subscriptions refer to a model in which customers pay a periodic fee to access a product or service for a specified period. These rates can be monthly, quarterly, yearly, etc. A common example of a subscription is a video streaming platform, where users pay a monthly fee to access a catalog of movies and TV shows.

On the other hand, memberships involve customers becoming members of an exclusive community or program and paying a recurring fee to access benefits and special content. Memberships can include access to premium content, exclusive discounts, special events, priority support and more. A well-known example of a membership is Amazon Prime, where members get free shipping, access to streaming content and other perks.

Step 1: Define your unique value proposition

The first step in creating a business model based on subscriptions and memberships is to define your unique value proposition. You must identify what you will offer your subscribers or members that will motivate them to pay for your service and maintain their commitment in the long term.

Research your target audience and understand their needs, wants and challenges. From this information, develop a value proposition that solves their problems or provides them with a significant benefit. You may consider offering exclusive content, access to specialized resources, personalized advice, interactive community or other benefits that are relevant to your audience.

Remember that your value proposition must be clear, compelling and differentiated from your competitors to attract and retain subscribers or members.

Step 2: Establish subscription or membership levels

Once you’ve defined your unique value proposition, it’s time to set subscription or membership levels. Offering different levels will allow you to adapt to the different needs and preferences of your customers and generate more revenue.

Create different subscription or membership options, each with specific features and benefits. You can offer a basic level with limited access to your content or services, an intermediate level with additional benefits and a premium level with full access to all exclusive features. Ensure that each level is priced appropriately in relation to the value provided.

In addition, consider offering long-term subscription or membership plans, such as discounted annual subscriptions or multi-month memberships. This can foster loyalty and increase customer retention.

Step 3: Develop a robust platform and user experience

A crucial aspect for the success of your subscription and membership based business model is to develop a solid platform and user experience. Your platform should be intuitive, easy to use and offer seamless access to the content or services you offer.

If you are building a website, make sure it is visually appealing, responsive and with clear navigation. If you are using a mobile application, optimize it to provide a smooth user experience on mobile devices.

Also, make sure your platform offers a convenient and secure way for customers to subscribe or become members. Consider integrating reliable online payment systems and providing flexible payment options, such as credit cards, PayPal or bank transfers.

It is also important to offer a personalized and relevant user experience. Use personalization tools to tailor content or benefits to the interests and preferences of each subscriber or member.

Step 4: Implement effective marketing strategies

An effective marketing strategy is essential to attract new subscribers or members and keep existing ones engaged. Use different marketing tactics to increase the visibility of your business model and stand out in the market.

Optimize your online presence using SEO techniques to improve your website’s search engine ranking. This will help you attract qualified traffic and increase the visibility of your subscription or membership offers.

In addition, take advantage of social networks to promote your benefits, share exclusive content and generate interaction with your audience. Use content marketing to demonstrate the value of your subscriptions or memberships through blogs, videos, infographics and other formats.

Also consider collaboration strategies with influencers or partnerships with other complementary companies or brands to expand your reach and generate more subscriptions or memberships.

Step 5: Build subscriber or member loyalty and retention

Loyalty and retention of subscribers or members are critical to the long-term success of your subscription and membership based business model. This is where the difference between subscription and membership becomes relevant in terms of loyalty.

In the case of subscriptions, loyalty is achieved by providing consistent and relevant value over time. Provide high quality content or services on a regular basis and seek feedback from your subscribers to continually improve.

In terms of membership, loyalty is based on creating a community and a sense of belonging. Encourages interaction among members through forums, private groups on social networks or exclusive events. It offers additional benefits and rewards for those who remain long-term members.

In addition, it pays attention to customer service and provides fast and efficient support. Respond to your subscribers’ or members’ queries and problems in a timely and friendly manner. Personalized attention and problem solving contribute greatly to loyalty and retention.


Creating a business model based on subscriptions and memberships can be a highly profitable strategy for your startup. Take advantage of the opportunity to generate recurring revenue and build long-term customer loyalty. Remember to define a unique value proposition, establish subscription or membership levels, develop a solid platform, implement effective marketing strategies and foster loyalty and retention.

As you follow these steps and focus on providing consistent value to your subscribers or members, you will be well on your way to success in your subscription and membership based business model. Get started today and build a solid foundation for your startup’s growth and profitability!