We have just looked at various ideas and business models for your subscription website. However, the key lies in differentiating between each idea and working out which one is most likely to make your website a success. Here are some factors to consider while selecting your business idea.
The first thing you need to do is to identify a service you have expertise in. Just about everyone has an expertise in something that they could sell. Odds are they are already selling it as their primary income source but have never thought seriously about generating customers by using the Web’s full potential. In order to generate income, enough people must need and/or value your service and feel strongly that they will personally profit from the way you deliver it versus your competitors’ approach.
Write down in point form exactly What, How, Why, and Where you offer (or plan to offer) your service. Note your range of flexibility – how and where you can adapt your service to particular needs. Describe your strengths (i.e., the reasons why you are better than the competition) and pinpoint your weaknesses (i.e., what you are planning to improve).
Understanding the needs of your target audience is essential for every business. You should always develop a profile of your ideal client. Make your sketch as comprehensive as you can. If your service has more than one kind of audience, do a profile for each major type. As well, ask yourself who should not be your prospect -- this technique is helpful to keep you focused on your target audience.
To work out an effective marketing strategy, you need to study your target audience. How do you sell your service to prospective clients? What marketing strategies do you use while advertising? These questions can only be answered when you know who your probable customers are and what they are looking for.
You may get a better understanding of your prospective customers by studying their demographics. Determine what are their ages, gender, professional and educational background, interests, and income level. A good way of doing this is by conducting online surveys.
A unique business idea or a unique service offering is probably the most important factor for a successful website. If you wish to stay in business for long you have to develop original content as subscribers value original content. It is very difficult to sustain in the long run if you lift your concepts from your competitors.
There have been many cases of a copycat environment, especially for information related websites. Publishers of such websites often cut and paste information from other websites and sell it as their own. This may bring customers initially, but, in the long run, it never succeeds. Besides, this is all the more reason for you to provide something original and unique. With so much content copying going on, subscribers are bound to appreciate original content. You should always look for something new to say. Consumers are constantly looking for information that will stimulate and challenge them.
It is very likely that your service or content is not entirely unique. In such cases, you need to provide your customers with some extra – maybe a higher discount with the same quality of service, or some other kind of incentive. Offer something that has high value. Offbeat or unusual services often attract online attention and sell strongly. You would generally not try to sell information people can get at most websites.
Some people subscribe because they feel your website is novel or revolutionary. Some people subscribe because they believe your information is dependable and reliable. Some people subscribe because they believe they're getting a good deal. Being unique is all about focusing on your customer’s needs. Answer the following questions and would be that much closer to creating a unique service offering.
• Do you provide specialized information?• Is your content hard to find or unavailable elsewhere?
• What makes your product exclusive? Is it better than your competitors? If so, how is it better?
• What is the focus of the information you provide?
• What do your readers have when they have your information? What do they miss if they didn’t get your information?
We stressed a bit on the “unique” factor above. What is the most pragmatic way of devising a unique offering? The answer to this is plain and simple. Study your competition! This is probably the smartest thing you’ll ever do. Make a list of all your competitors and their offerings.
Look out for news items and case studies on your competitors. These would give you a fair idea of what makes them stand out and what doesn’t. Sometimes it is also possible to study customer reviews of services offered by your competitors. This sort of information is invaluable. It will help you in offering your customers something your competitors don’t.
Assessing the competition also will also help you in deciding on an idea. For instance, sometimes it may not be worth selling a particular kind of content or service if your competitors are dominant market leaders and cater to a high percentage of the market segment.
You have an idea of a great information product or service for your website. You also have worked out techniques on how to make this service unique, which is great. However, all of this means nothing if you do not have access to resources needed to successfully implement your plan. Understanding your resources is a vital aspect of every business. Do you have access to good copywriters and other staff needed to execute your plan? Are you flexible enough and would it be possible to adapt your service to your customers’ particular needs? Do you have enough resources to constantly update your service and hold an edge over your competitors? These are areas you need to look at before you finalize your business idea.
There is no substitute for good customer service. In order to increase and retain your customer base, you fulfillment and customer service capabilities have to be top notch. You should have the necessary infrastructure in place so that you customers can contact you anytime they have a problem.
The bottom line is to provide outstanding service every time. “Wow” your customer with your fast turn-around, or low pricing, or free trial, or unexpected extras, or generous warrantee, etc. Quality and high satisfaction guarantee repeat customers. And they generate word-of-mouth referrals - the most targeted and least expensive way to develop leads, produce contracts, and increase profits.
Finally, you need to work out your budget and estimate the startup costs as well as ongoing costs. For a small venture, these costs are not very high. Given below is an estimate of the kinds of costs you may incur for setting up a subscription website.
Basic Equipment – This includes at least one computer and desk for yourself. A good computer from IBM or Dell costs around $900. A desk may cost anywhere from $50 to $150.
Incorporation cost – The incorporation process may take about two weeks to one month. The cost of incorporation is very nominal – around $100 to $200.Domain Name registration – Domain name registration for a single domain extension costs around $25 a year. The most popular domain extension is .com.
Software – This is the biggest investment you would make towards setting up your website. Make a list of all software you require. Some of them may even be free while some may cost thousands of dollars. Research is essential. Please note that you should never opt for sub standard software, especially in the case of subscription websites. These software are instrumental in the success of your website.
Encryption and security certificates - A secure socket layer certificate costs around $300 from VeriSign.Logo and Website design – You may design your website as well as logo yourself if you are proficient in these skills. This way you can save some money. However, it is recommended that you opt for professionals as they don’t cost a lot. Website and logo design may cost anywhere from $150 to $500.
Web hosting – Your Web hosting company plays a major role in the working of your website. For small and medium websites, hosting companies charge from $30 to $150 a month.
Merchant and getaway accounts - Banks and gateways charge monthly support fees and a discount fee on each credit card transaction your site processes. These costs usually run less than $50 a month, and increase only a small amount as your subscription base grows.
Operating costs include your monthly salary and salary of your staff, if any. You could always start alone and slowly build up. Operating costs also include monthly payoffs on any loan you may have taken to buy equipment.