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As a freelancer working in a competitive field, it can be better for your venture to build a subscription-based business that caters to your clients. This has become something of a standard method these days and is typically well-received because it has features that benefit the company and the customer. So, where do you begin, and what are your options? From productizing your services to automation, here are some of the most impactful suggestions.

Explore All Your Software Options

Running a business today is almost impossible without software, apps, and the internet. Fortunately, there are many options available that can help you become successful through client management, logistics, and, of course, accounting. From personal trainer software that helps you manage individual client profiles, to apps that connect with your business bank account, there’s no limit to finding the help you need to manage a company on your own.

A Subscription-Based Business with Products

Freelancing varies according to work type and the limits of a service, but around 28% of high-earning freelancers use retainer or subscription models for their business. One of the easiest ways to transition to this model is through the productization of your offered services:

• Define packages and pricing with scope, deliverables, and timelines reflected in costs.
• Streamline the system through onboarding, tracking, and secure billing dashboards.
• Break up products into tiers with low-cost options to cover a range of clients.

Narrow Down a Viable Niche

One of the most overlooked parts of starting any business is being too broad with what you can offer. This can result in poor service as you try to do too many things, and you could also face a huge amount of competition, resulting in financial losses. However, focusing on a niche or target audience makes it easier to market yourself and what you can offer to clients. For example, as a personal trainer, you can offer certified HIIT training with a focus on outdoor strength activities.

Help Existing Clients Transition

If you already have a somewhat successful client list, then they should be a priority when switching to a subscription-based service. Current clients are the real path to success when making the switch, and they may even offer greater support, especially if you communicate the benefits of the changing service in a way they can understand. However, you can also keep them as valuable clients by offering exclusives such as discounts or upgrades to higher tiers.

Price Your Subscription-Based Business

It is estimated that up to 60% of new businesses struggle with finding a balance between costs and pricing. Of course, depending on what you do, this can be easier, and there are even tech funding avenues for new entrepreneurs. However, there are a few pricing models to consider.

The “All You Can Eat” model

With this common model you charge a flat monthly fee that provides clients with access to all the features and deliverables defined in the package’s scope with a capped turnaround time.

The retainer model

Using this model, you can offer clients a limited number of hours for service per month with a defined scope of deliverables and features, anything outside of which is charged at extra cost.

The maintenance and support model

This model offers extra income for the business and more scope for the client by providing monitoring, backup, or update services for your deliverables for a low monthly fee.

A combination of these models can help provide a rounded service for customers and clients while making it easier to manage a large volume in a structured and efficient manner.

Build In Additional Client Services

Clients love getting something extra for their commitment, even if it is relatively small. They also like it when they feel they are getting value from a subscription, something that is currently eroding away with giants such as Netflix and Disney+. However, taking the time to offer small perks such as access to private client portals or priority 24-hour turnaround adds something extra to a subscription that customers appreciate, especially if they are paying for a higher tier.

Develop a Clear Scope for the Company

One of the core aims when developing your new model is to define the scope of services and deliverables. This is essential as it can help avoid confusion or even legal disputes. Like a contract or terms of service, the scope of what you offer must be clearly defined so customers know what to expect and you can protect your own time. For example, you can outline the cue system of order of work, typical turnaround times, and clear pricing structures for clients.

Automate Your Subscription-Based Business

Recent data suggests that over 97% of businesses use automation tools in some way today. Automation can be used at scale or for individual tasks, and alongside AI agents can power a business to the point that a single person can run a sizable company relatively easily: 

• Centralize recurring billing using a platform such as Stripe, Chargebee, or ThriveCart.
• Automate customer onboarding and communication, such as welcome emails.
• Deploy customer support bots such as ChatBot AI tools to handle customer queries.

Retention, Communication, and Cancellation

It might sound counterintuitive, but you can actually boost retention with easy cancellation of services. So how does this work? When customers sign up for a service, they generally want to do it with as little friction as possible. This relies on clear communication and an easy way to cancel, such as one-click cancellation. Clients are generally more accepting of a service when they understand they are not locked into a predatory contract and are more likely to come back.

Summary

Taking the time to explore all software and app options available, such as QuickBooks for connecting your business bank accounts, will help you build and manage a subscription-based business. It also helps to explore the various models available, such as the retainer model and ongoing support. Of course, making it easy to cancel and showing clients they aren’t locked into an unfair contract can actually boost retention and increase the chances of customers returning.

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