How to Start Your Own Subscription Box in 2022

What is a Subscription Box?

Subscription boxes have evolved from it's humble beginnings of businesses having a few subscription boxes that rewarded their customers with small samples. Subscription boxes have grown tremendously in the services and features they provide, including top quality products and services for their members. "People are looking for a place they can trust—a place where they can get lifetime value."

According to Musick, subscription boxes have morphed into a huge model where everyone wants a piece of the subscription box pie. With a subscription model, it's all about the customer experience. This results in a definite investment rate, a consistent revenue stream and customers that come back. If you serve your members well, they will keep renewing the subscription.

"There's a subscription box for every single niche, but the reason why people get into them is for one reason and one reason only-the lifetime value. Lifetime value is what you're after. With an ecommerce store, it may be easier to land a customer but with a subscription model you're going to serve them. It's all about customer value that you can put in beyond the product."

How Can a Small Business Owner Use The Subscription Box Model to Expand Their Business?

According to Musick, not every business will be successful with a subscription box. You have to find a niche and a product that will succeed within the subscription box business model. Business owners have to find a product that has a unique value proposition and one that they can provide on a regular basis.

How does Advertising and Marketing Work for The Subscription Box Model?

Existing businesses with customers 

"You're going to really want to lean on your email marketing because you already have an existing audience." Your email is something that you own—it doesn't matter what the paid ads algorithms are doing, whether it's TikTok, or Facebook, or Instagram. 

Businesses that do not have an existing audience 

"Your best bet is to start getting good at paid ads." According to Musick businesses can also use the organic growth method, but at some point, a new business is going to have to use paid ads which includes Facebook advertising, Instagram and TikTok. "TikTok algorithms have really improved, and it's worth investing in.”

How Would You Utilize an Influencer in Your Advertising Model for a Subscription Box?

Musick recommends finding the right influencer for your niche to unbox your packages. "You have to do the homework. This involves finding good influencers. Set goals to reach out to potential influencers." 

Your influencers do not need to have a huge following, but need to be in the right niche. 

"I find the best ones are what we call micro influencers."

How Can a Small Business Entrepreneur Start a Subscription Box Service?

Starting a subscription box can become quite overwhelming because of the shipping that’s involved. Musick suggests that a business owner should start small.

• Validate your idea with a solid business plan. 

The best way to do that is to put together an idea with a solid value proposition—something that separates you from everyone else.

• Put together a few items in a box and present your concept to your family and friends. take their advice and comments.

• Pricing 

Test your pricing with people you know. Give them a few different price points to see where people are comfortable with the pricing. 

• Find who your ideal customer avatar(ICA) is

"There are exercises people can do, you can Google it or you can go on to podcasts like mine and type in ICA." Your ICA can change as your business evolves.

Closing Remarks

Subscription boxes are not easy. According to Musick the advantages are worth the hassle. "You become a part of a great community, you can work remotely, and you can start relatively small, with almost no money and grow into something big." Musick recommends that small businesses take advantage of free resources. 

Don't get discouraged if other businesses are in the same niche. Focus on the lifetime value because it will keep cash flowing into your business. "Eventually, you will get to the point where you can put in some marketing dollars to really blow your business up."

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