6 most popular subscription services
Although the subscription business model is incredibly popular it doesn’t mean that starting a subscription company is easy. With a heavy reliance on recurring customer relationships, the subscription model requires a constant focus on providing long-term value. Providing that level of consistent and compounding value can happen only when businesses understand their customers inside and out. Here is a list of some subscription services that are nailing it.
ClassPass provides a monthly membership to over 30K fitness studios around the world. Rather than join one gym, you can join ClassPass and try different fitness classes at different gyms.
ClassPass provides accessibility to a multitude of fitness classes and it gives people the opportunity of not having to commit to just one gym. Their target audience ranges from fitness fanatics to those who simply just want to “try it out.” Their pricing ranges from $15 to $199 a month for credits varying in value that can be redeemed for classes.
HubSpot offers a full stack of software for marketing, sales, and customer service with a completely free CRM at its core. The platform is the quintessential SaaS platform and they have been dominating the space for years. HubSpot’s main benefits range from its free CRM, how well all of its tools work together cohesively as well as the easy setup, and it cannot go unmentioned that HubSpot coined and championed the term “inbound marketing.” Inbound marketing revolves around creating educational and informational content to attract new leads i.e. blog posts, eBooks, and webinars. HubSpot’s target audience ranges from small businesses looking to build out marketing automation to large enterprise customers that are looking to upload 10,000 contacts into the CRM. Not only is that reflected in their pricing—starting at $50 for that small business—but the inclusion of the free CRM is just as important.
Webflow is a web-based drag and drop tool for building responsive websites, a team that stands behind the “no-code” movement. Their goal is to create a world where everyone can create powerful, flexible websites and apps as easily as they create documents today. Webflow is a freemium product until the user is ready to launch, meaning there is no free trial. The customer can take as long as they need to build out the website, but when they want it to go live, they’ll have to pay.
Webflow boasts some big-name clients on their website but you can start building with a basic plan at just $12. They also offer a freemium product with the goal of capturing customers in hopes of proving their worth.
MasterClass is an eLearning website that offers video lessons from some of the world’s best actors, chefs, athletes, and more. MasterClass pulls in some big names to provide expert classes to those looking to learn how to cook with Thomas Keller, direct a scene from Ron Howard, and even hit that all-important three from Steph Curry. MasterClass offers high-quality lessons from experts in their field, that you can take in the comfort of your home. Prior to this, there was really no way to learn from these experts unless you had the budget or started working for or with them. The platform also offers feedback on a student’s progress and work, a student community, and of course access to the field masters that wasn’t possible before. Where MasterClass is gaining traction is in targeting a mass audience of more casual learners, and it is succeeding at getting them to pay a substantial price ($180 annually) by the standards of media or consumer internet platforms.
As a premier provider of human capital management software and services, Zenefits targets small business customers—aiming to disrupt the benefits and payroll ecosystems. Zenefits powers its customers with the tools to help run their operation with a simple and intuitive way to streamline onboarding, benefits, payroll, PTO, and human resources. There are only 20,000 companies in the United States with more than 500 employees. Zenefits is leveling the playing field for the 99.7% of businesses in the U.S. with less than 500 employees, whose teams are often under-resourced and overlooked.
Foundersuite is "the ultimate funding stack," a complete set of tools for startups looking to raise capital. It's composed of product features for financial intermediaries, investors, accelerators, and existing teams. It’s an investor database to build your funnel, and a CRM to manage that funnel. Foundersuite offers pitch deck hosting tools and sets of documents (think term sheets and cap tables) bringing structure, speed, and efficiency to fundraising and investor relations.
Founder and CEO, Nathan Beckford says, “You’re not born knowing how to raise money." His team knows investors are looking to make quick decisions on whether or not they want to move forward with an initiative. They also know that if budding companies try to connect with these investors but approach it the wrong way, they waste an invaluable introduction.
Foundersuite users say that the tool has become an integral part of their launch and management process. It saves them time, money, and helps with internal and external communications. Foundersuite’s pricing varies depending on what functionality users are looking for, but it’s very clear that their target audience is early-stage startups. They offer a freemium product and scale up to the “Agent” plan for a monthly fee of $150.