Subscription sites are growing by the month (if not week), and here are some interesting launches and acquisitions we thought you’d want to know about:
The Indie label Stones Throw just launched a subscription service by which members would get ever song/album they released delivered to their Inbox
Hitch.me lets singles date by ‘hitching’ into their LinkedIn profile. The site has only three questions: two about finance and one about what type of car you drive (which, as a native New Yorker, I found to be a curious litmus test of net worth).
On the other side of the equation, a number of sites are experiencing growing pains:
Gods & Heroes is dropping its subscription service in favor of a flat $9.99 fee.
Netflix is keeping its subscription service but phasing out its DVD rentals, moving more to a SaaS model with streaming movies.
AOL, the original online subscription service, seems to be going down the rabbit hole with their resistance to subscription services and rapid growth of the Huffington Post abroad.
Slader.com, a new service to help kids with math homework, downgraded from a promising subscription model to free!
Of course, there’s no one algorithm to success. But recently, Lynda Weinman of Lynda.com fame went on Big Think to give her opinion on the matter. We just love how she emphasizes getting to know the daily workings rather pondering abstract business models. Perhaps that’s why Paywall Times readers are finding success in the subscription industry?
In early 2010, we estimated US adult content sites were selling an estimated $4 billion per year in memberships and other recurring billing subscription plans. Given the amount of membership site launch and growth activity reported on by trade magazine XBiz.com just in the last month alone, we suspect that number is now considerably higher.
For example, last Friday Private Media Group launched a new softcore membership website Glamazones.com; and, this week lesbian content specialists Girlfriends Films noted for 2011 due in part to “the massive success of our membership site, we exceeded our own expectations.”
Aside from compelling content, what marketing tactic is responsible for this success? Adult sites rely far more heavily on affiliate marketing deals than any other membership site sector we’re aware of. Plus, in the adult world directly competing sites are highly likely to be each other’s affiliates. One common tactic, using overlays and exit pops to promote a competitor’s site to all traffic that bounces off your own site without converting to your own membership offer. This is an idea that could work well for mainstream sites as well… but we don’t know anyone who’s yet to try it.
B-to-B publishing is alive and well, and publishing CEOs see the best opportunities in online publishing and events, according to a new survey of B-to-B CEOs from Folio Magazine. B-to-B publishers of all sizes can learn a few key lessons from the survey results, including why now is the time to launch a membership or subscription site:
E-media was the fastest growing revenue stream last year (cited by 68 percent of larger publishers and 52 percent of smaller publishers). This is where you need to put your money. If don’t already have a subscription site, learn how to run a membership site effectively. Repurpose your content into mobile apps; yes, there is a market for b-to-b apps. Keep an eye out for what’s next in the online space.
35 percent of larger publishers plan to launch an online publication compared to 20 percent who expect to launch a new print magazine in 2011. Meanwhile, 27 percent of smaller b-to-b publishers plan to launch online, while just 13 percent are planning a magazine startup. A third of publishers are launching an online startup this year. These days it is usually cheaper and less risky to launch online. My greatest fear in seeing these numbers is that another company might launch my idea before I do. Get out there and do it now and don’t use money as an excuse. Our recent Case Study on NeedATopic proved that a membership site can be launched in less than a week for less than $1,000.
Larger publishers said the events part of their business was their second-fastest growing revenue stream. No matter the size of your business, if you’re not doing events, you’re leaving business on the table. Start small if you have to with a half-day or full-day conference near your headquarters. Learn from the experience and grow. Don’t forget virtual events like trade shows and education.
The majority of both larger and smaller publishers say they expect a double-digit increase in revenues this year. Business is back. Ask yourself, where can you find double digit increases in your revenue streams?
This week’s exclusive Case Study at our sister site Subscription Site Indier goes behind-the-scenes at Beer Business Daily, a paid email newsletter that’s bought by a whopping 70% execs in its niche market. Here’s our #1 lesson learned:
Founder Harry Schuhmacher grows profits by launching paid sister newsletters which he markets to his current customer and prospect base. For example, he launched a very successful paid newsletter just for the craft beer industry.
Key: He picked the topic by watching which Beer Business Daily headlines about niche topics generated the most interest. (News about the fast-growing craft beer segment is in high demand by the newsletter’s subscribers from the beer distribution industry.)
While he continued to cover large craft breweries in Beer Business Daily, the new publication went much deeper and expanded coverage to thousands of smaller craft breweries, so readers had to buy a second subscription if they were passionate about the topic. So his customer-base is overlapping — but the content is not.
(If you’d like the entire Case Study, including details on how the company turned free email opt-ins into paying subscribers, here’s the link.)
This week’s new Case Study at our sister site Subscription Site Insider is on ENannySource — a matchmaking site for parents and nannies that’s under siege from “hypercompetition”.
Paywall Times’ #1 lesson learned:
President Steve Lampert revealed his team uses a range of marketing and pricing tactics to stay on top … but his most critical weapon is narrow positioning.
Seems like most competitors try to grow by broadening the range of matchmaking they offer. They’ll help you find anyone from a pet sitter to an elder care-giver.
After a decade in the paywall business, Steve Lampert says he’s learned to do the exact opposite. Keep razor sharp focus on serving just one specific pain point. Then, when you want to grow profits, create additional products or services that match that focus completely – without broadening it.
(If you’d like the entire Case Study, including which specific additional revenue streams are helping Lampert’s profits despite competitive price decreases, here’s the link.)
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