Subscription Models: Building Recurring Revenue

Transform your feast-or-famine income into predictable monthly revenue. Here's how to build a subscription business that scales while you sleep.

Why Subscriptions Change Everything

The Math That Matters

One-time sales model:

• Need 100 new customers for 100 sales
• Constant acquisition pressure
• Revenue resets monthly

Subscription model:

• 100 customers = 100 sales every month
• Compounds over time
• Revenue grows automatically

Real example:

• 100 customers × €47/month = €4,700 MRR
• 85% retention = €47,000+ annual per cohort
• Add 20 customers/month = €11,280 MRR by year-end

The 5 Subscription Models That Work

1. Content Library

What it is: Access to all your courses/content

Perfect for: Course creators with multiple products

Price range: €27-97/month

What to include:

• All existing courses
• New monthly content
• Resource library
• Community access

Success secret: Add new content monthly to prevent churn

2. Community Membership

What it is: Access to exclusive community and events

Perfect for: Coaches and consultants

Price range: €47-297/month

What to include:

• Private community platform
• Weekly group calls
• Monthly workshops
• Hot seat sessions
• Member directory

Success secret: Foster peer connections, not just leader-to-member

3. Coaching Subscription

What it is: Ongoing support and accountability

Perfect for: High-touch transformations

Price range: €197-997/month

What to include:

• Monthly 1-on-1 call
• Voxer/Slack access
• Personalized action plans
• Resource recommendations
• Priority support

Success secret: Clear boundaries prevent burnout

4. Software/Tool Access

What it is: Ongoing access to tools or AI assistants

Perfect for: Solving recurring problems

Price range: €19-197/month

What to include:

• Tool access
• Regular updates
• Training resources
• Support

Success secret: Become indispensable to their workflow

5. Hybrid Model

What it is: Combination of above

Perfect for: Mature businesses

Price range: €97-497/month

Example tiers:

• Basic: Content library
• Pro: Content + community
• VIP: Everything + coaching

Success secret: Clear differentiation between tiers

Reducing Churn: The Secret to Growth

Understanding Churn

Industry benchmarks:

• Good: 5-7% monthly churn
• Average: 10% monthly churn
• Poor: 15%+ monthly churn

Churn calculation:

Churn Rate = (Customers Lost / Total Customers) × 100

At 10% monthly churn:

• Average customer lifetime: 10 months
• Need 10% growth just to stay flat

At 5% monthly churn:

• Average customer lifetime: 20 months
• Same growth = 2x revenue

The First 90 Days (Most Critical)

Day 1-7: Activation

• Welcome email series
• Quick win delivered
• First value realized
• Community introduction

Day 8-30: Engagement

• Daily touchpoints
• Progress tracking
• Habit formation
• Social connections

Day 31-60: Integration

• Part of routine
• Seeing results
• Building relationships
• Creating dependencies

Day 61-90: Advocacy

• Success stories
• Referral requests
• Testimonials
• Case studies

Churn Prevention Tactics

1. Engagement Monitoring

   Track weekly:
   - Login frequency
   - Content consumption
   - Community participation
   - Support tickets

2. Proactive Outreach

   If no login in 7 days:
   → Send value reminder email
   
   If no login in 14 days:
   → Personal check-in
   
   If no login in 21 days:
   → Offer pause instead of cancel

3. Value Reminders

   • Monthly "wins" email
   • Usage statistics
   • ROI calculations
   • Success spotlights

Pricing Your Subscription

The Psychology of Monthly Payments

What feels expensive:

• €500 one-time

What feels affordable:

• €47/month (even though it's €564/year)

Finding Your Price Point

Formula:

Monthly Price = (Annual Value / 12) × 0.3-0.5

Example:

• Annual value: €2,400
• Monthly calculation: €200 × 0.4
• Subscription price: €80/month

Annual vs. Monthly

Always offer both:

Monthly: €97 Annual: €970 (save €194)

Typical split:

• 30% choose annual (improves cash flow)
• 70% stay monthly (higher lifetime value)

Setting Up Subscriptions in Selgora

Quick Setup Guide

1. Create Subscription Offer

   Offers > New Offer
   Pricing Type: Subscription
   Billing Period: Monthly/Annual

2. Configure Access

   • Immediate or dripped
   • Expires on cancellation
   • Grace period (recommended: 3 days)

3. Set Up Dunning

   Settings > Payments > Dunning
   Retry Schedule: 3, 5, 7, 10 days
   Email at each attempt

4. Welcome Sequence

   Automations > New Flow
   Trigger: Subscription Started
   Actions: Email series, grant access, tag subscriber

Launch Strategy

The Beta Launch Method

Week 1-2: Pre-launch

• Announce to email list
• Share vision and benefits
• Collect interest

Week 3: Founder's Launch

• 50% off lifetime discount
• First 50 members only
• Create exclusivity

Week 4: Feedback Integration

• Survey founders
• Make improvements
• Gather testimonials

Month 2: Public Launch

• Full price
• Use founder testimonials
• Leverage FOMO

The Free Trial Debate

Pros of free trials:

• Lower barrier to entry
• Higher initial signups
• Experience before commitment

Cons of free trials:

• Lower quality leads
• Delayed revenue
• Higher support burden

Recommendation:

• B2C: €1 trial for 7-14 days
• B2B: Full price, strong guarantee

Retention Strategies That Work

Monthly Value Injection

Week 1: New training/content Week 2: Live group call Week 3: Challenge or prompt Week 4: Member spotlight

The Pause Option

Instead of canceling:

• Pause up to 3 months
• Keeps seat reserved
• Maintains progress
• Reduces win-back costs

Implementation:

"Life happens! Pause your membership instead of canceling.
Your progress and price are protected."

Win-Back Campaigns

For canceled members:

30 days after cancel: "We miss you! Here's what you've missed..." + 25% off return

60 days after: "Special invitation back" + Bonus month free

90 days after: "Final offer" + Grandfather original rate

Success rate: 15-20% typically return

Metrics That Matter

MRR (Monthly Recurring Revenue)

MRR = Active Subscribers × Average Monthly Price

Track:

• New MRR (new signups)
• Expansion MRR (upgrades)
• Contraction MRR (downgrades)
• Churned MRR (cancellations)
• Net MRR (total change)

LTV (Lifetime Value)

LTV = Average Monthly Price × Average Lifetime (months)

Example:

• €47/month × 10 months = €470 LTV

CAC (Customer Acquisition Cost)

CAC = Total Marketing Spend / New Customers

Rule: LTV should be 3x+ your CAC

The Growth Formula

For sustainable growth:

New Customers > Churned Customers × 1.5

Common Subscription Pitfalls

Pitfall 1: Not Enough Ongoing Value

Problem: Front-loading all value Solution: Spread value across time

Pitfall 2: Poor Onboarding

Problem: Customers don't activate Solution: Forced quick win in first 48 hours

Pitfall 3: Ignoring Silent Cancelers

Problem: No engagement but still paying Solution: Re-engage before they realize

Pitfall 4: Feature Creep

Problem: Adding too much, overwhelming members Solution: Focus on core transformation

Pitfall 5: Underpricing

Problem: Can't deliver quality at low price Solution: Price for sustainability

Your 30-Day Launch Plan

Week 1: Foundation

• [ ] Define core offer
• [ ] Set pricing strategy
• [ ] Create in Selgora
• [ ] Design landing page

Week 2: Content

• [ ] Build first month's content
• [ ] Create welcome sequence
• [ ] Set up community space
• [ ] Plan engagement calendar

Week 3: Launch Prep

• [ ] Beta tester recruitment
• [ ] Email sequence writing
• [ ] Social proof gathering
• [ ] Tech testing

Week 4: Launch

• [ ] Soft launch to warm list
• [ ] Gather feedback
• [ ] Iterate quickly
• [ ] Scale gradually

Month 2+: Optimize

• [ ] Track all metrics
• [ ] Survey members monthly
• [ ] Test price points
• [ ] Reduce churn systematically

Success Templates

The Perfect Welcome Email

Subject: 🎉 Welcome! Here's your first win...

Hey [Name],

You just made the best decision for your [goal].

Your quick win for today: [Specific 10-minute action]

This week you'll:

• [Outcome 1]
• [Outcome 2]
• [Outcome 3]

Important links:

• Your dashboard: [link]
• Community: [link]
• First lesson: [link]

Questions? Just reply!

[Your name]

The Retention Check-in

Subject: Quick check - how's it going?

Hey [Name],

You've been with us for [30] days!

Your progress:

• Lessons completed: [X]
• Community posts: [X]
• Wins achieved: [X]

Anything you're stuck on? Just reply and I'll help personally.

[Your name]

Remember This

Subscriptions aren't about locking people in—they're about continuously delivering value. Focus on transformation, not transaction.

Your members should think: "I can't imagine life without this" not "When can I cancel?"

Build that, and you'll build a business that grows while you sleep.

Your next step: Define what ongoing transformation you'll deliver. Everything else follows from there.