Pricing your subscription business feels hard because it is hard. It isn’t just cut-and-dry economics, it’s a deeply emotional process. You’re negotiating your salary with yourself, and no matter how evolved we are as individuals, we are our own biggest critics.
The following facts are more important than any insecurities: you and your business deserve to join the subscription economy. You deserve reliable, sustainable recurring revenue. So, let’s find your voice and your value, and price your subscription plan properly the first time.
Check the norms
Take a moment to assess what else is out there and what they charge. People do comparison shop, so it can’t hurt to know what going rates for subscription yoga classes, cooking classes, newsletters, podcasts, etc. are. It’ll give you a general sense of the market. Now that you’ve got the general pricing intel, stop your research. You heard me.
Comparison is the thief of joy. Should you view other entrepreneurs with similar models as competition? No. The entrepreneurial spirit thrives with a sense of community, you need other biz owner pals to chat with and help each other drum up businesses (hooray for referrals). What you don’t need, though, is to obsess over why others do what they do, so keep the pricing research light.
Chuck the norms
If you just compared yourself to a big corporation with a competitive subscription model and thought, “F. I can’t price myself that low and live, why would anyone choose lil’ old me at a higher price!?” Please know, you’re not alone. Every entrepreneur thinks this way at first. Do you know what you offer that is way better than a big, cold corporation? You’re you. There is only one you. You run a small business and offer a meaningful, loving touch. You can probably help people 1:1 when needed, and that’s incredibly valuable. That’s real customer care. That’s worth more than what the big guys can offer.
You deserve a reliable, recurring revenue stream, so let’s do some math! First, figure out your desired monthly income. Once you’ve figured out what you need as your regular earnings, posit in how much time you have for your subscription plan and what your time is worth. By looking at the end $ amount you need and how much time you can devote to your regular working hours, you can figure out how many subscribers you need to get to that amount and can comfortably carry. Now that you’ve figured out your firm numbers, it doesn’t seem so scary does it?! Do you need 10 regular subscribers? 20? Let’s go get ‘em!
Know your worth
When you trust your worth, your users will see your value. Price yourself accordingly. If you’re ready to launch a business, then you deserve to be paid properly. Underestimating your value is a more prevalent problem for women, BIPOC and marginalized communities… so if that rings true of you, take a deep breath and think about the other points… and then price your subscription plans like a CIS white man. You’re fully in control here. You are the boss now and you don’t have to exist in anyone else’s 80 cents on the dollar world.
Ask an expert
Finding a mentor always helps. Entrepreneurs are some of the most creative and kind people on the planet, and we’re certain if you reach out to someone in your field that you admire they will chat you through your early stages. And if not, Subkit is here.