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Everyone talks about how to get subscribers. How to grow the list, run the launch, get to 100 paying customers. Nobody really talks about what happens after. I saw a story from a freelance illustrator who started a subscription box of her own artwork for $19.99 a box. Good quality prints, nice packaging, real effort. She ran it for six months and then closed it. The reason wasn’t bad marketing. The product was good. People liked it. Thing is, after she added up quality prints, packaging, the “free” shipping that was quietly eating 30% of what she charged, plus payment fees and platform costs, she was losing roughly $1 on every single box she shipped. And even on top of that, she said 80% of the actual work turned out to be spreadsheets, suppliers, and marketing. Almost none of it was the illustration work she started the whole thing to do. I keep thinking about that. Because the same pattern shows up in basically every type of subscription, not just physical boxes. A newsletter, a paid community, a digital membership. The business looks fine from the outside, and then around month three or four things quietly start going wrong. Here’s the math most people skip. At 5% monthly churn, which sounds pretty small, you start the year with 100 subscribers and end it with 54. Nearly half gone, just from normal dropout. And to stay flat at 100, you need to add 8 new customers every single month, forever, just to break even. That’s a lot of running to stay in the same place. Not only that, some of that churn isn’t even people deciding to leave. A card expires, a payment fails, nothing retries automatically, and that subscriber just disappears. The founders who actually built something that lasted weren’t obsessed with acquisition. They were obsessed with why people stayed. That’s the whole thing, really. If you’re thinking about starting a subscription, any kind, figuring out your real delivery cost and your churn math before you build anything is the move. Not after the first 30 customers. Before you take the first dollar. ​I made a full 90-day plan on this if you want to see the whole thing. Talk soon, Minosh If you’re starting with a digital subscription, a newsletter is the lowest-risk place to begin, near-zero delivery cost, your list is yours forever, and Kit.com is free up to 10,000 subscribers. The how-to guide is here too if you need it. Affiliate link above. Costs you nothing, helps keep this newsletter free. |
Online business and marketing insights from what's working out there, researched and handed to you every Thursday.
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