How To Start A Monthly Subscription Box Business

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Today we are going to be talking about a business using a subscription box and this is honestly one of the coolest ways that you can shop now and it’s really growing in popularity quite fast before i get into the video though i just wanted to mention i know some of you have been wondering as far as my upload frequency typically i upload every single day on youtube

However i’ve been working very hard building some premium content and i don’t want to get into too many details just yet i’m gonna let you guys know as i’m going forward i’ll give you guys some more details about what it is that i’m doing but just know i’m building something behind the scenes that i think a lot of you are gonna be very interested in and a lot of

People have been requesting this and it’s something i’ve wanted to do for a while and so that’s taking many hours of my time each day so as a result if you’re noticing maybe some of my videos are a little bit shorter or i’m uploading a little less frequently that is the reason i didn’t at all lose interest in youtube i’m just building something on the side that’s

Really going to be something i think you guys are gonna like so subscription boxes are really growing in popularity and we’re kind of seeing them pop up everywhere i’m even starting to see stores do them and they i got the idea for this video from i was at gnc and they wanted me to sign up for this gold membership and i was like god i really don’t want to then

They pulled out the box they’re like you’re gonna get this box once a quarter and i was like wow you know what that’s that’s kind of cool and they’re like it comes with coupons and free samples and so that’s what sold me on it i was like wow i’m gonna get a free gift four times a year so what it is guys it’s it’s something that offers customers a unique and fun

Shopping experience because we love getting mail i mean that’s one of the reasons i like ordering stuff on amazon is because it’s exciting when that package comes in the mail even though it’s something you would buy from the store i mean i just had to order a printer on amazon and some paper and it came in the mail and i was like oh wow i got a package you know

Obviously it’s nothing exciting but there’s just something fun about getting a package in the mail especially when you don’t expect it so that is why people love subscription boxes and business owners and people who have an entrepreneurial mindset people love this idea because what you’re doing is you’re creating recurring monthly customer because every month

You’re billing them and then shipping them a box of interesting things and most people as long as your price point is in line and you’re delivering on the products they’re gonna stay subscribed because they really like the surprise and they like getting mail and getting packages so there’s a huge potential for this you could pretty much start a subscription box

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With any shopping category i included a bunch of examples in the description if you guys want some ideas of existing businesses but i want to just go through the basic model of how you would start a subscription box business the first thing you would have to do is decide on a category so just a few examples of businesses that are already out there there’s a lot

Of them involved with food pets beauty nutrition like i said gnc is jumping on the bandwagon entertainment and education is a new one too i see a lot of people sending books and educational material out you do need to decide on a niche category because the truth is with this the more specific you are the better because you really want to tailor something to one

Specific customer base because that way when that customer stumbles upon your product they’re gonna be like wow this was made for me so you wouldn’t necessarily want to make just a generic entertainment box that had a bunch of random things that you could use because if it’s not tailored to one specific customer base there’s gonna be things in there they don’t

Want and they may decide okay this really isn’t for me but if you targeted specifically to somebody who has a specific interest they’re gonna be like wow you know this is something really special and they’re gonna use all the items you send them so just a few examples of some niche categories and a lot of these i’ve already been created but there’s some doing

Healthy snacks you could do a box specifically for small dog breeds you could do all natural beauty products you could do fitness supplements you could do comics or you could do boxes curate it around retro video gaming so once you’ve decided on what your niche category is and who you’re gonna go after you’re going to have to identify who your competition is

Out there so if there’s anyone else out there already doing a subscription box business you want to check them out maybe even subscribe to them just to get an idea of what their product looks like what’s the quality of the material they’re using what are the products are putting in there you want to consider what their pricing is you want to consider what their

Advertising is and want to also consider what the demographic is and you also want to think about this as well depending on who you’re going after they may have a different price budget i mean if you’re looking to send people bowties and dress ties and you’re looking to target very wealthy men then yes you could probably justify a fifty dollar monthly subscription

But if you were looking to send you know videogame material and like doing something like loot crate does where you’re sending basically a box curated for nerds and gamers that’s going after a much younger demographic maybe thirteen to twenty four years old somewhere around there they’re probably not going to have as much money as a rich executive who’s looking

To order bowties and you know different accessories like that so you have to consider what your pricing is going to be so you probably couldn’t do a fifty dollar monthly box to a teenager they wouldn’t be able to afford it number four you want to decide on what your marketing approach is going to be so how are you going to spread the word about your business

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One of the ways that a lot of people do this is through youtube unboxing so they will actually contact youtubers out there and they’ll say look i’m going to send you this for free we’re gonna pay you and what we want you to do is unbox it on your channel and it’s a really cool video people love unboxing videos so one of the most popular ways of marketing this

Business is finding somebody who is making videos that are targeted to your customer base and reaching out to them and saying hey can i send you this box and you know i’ll pay you to open it up on the air and you can have all these products for free and then maybe even offer some kind of affiliate program or they’re gonna get a commission for referrals another

Great way to do this is through targeted facebook ads so if you have a really good idea who your customer base is you can create targeted facebook ads and make sure that your ads are only playing in front of those specific people so if you’re looking to target you know men from twenty four to thirty within a certain area you could do that easily with targeted

Facebook ads or you might want to look for an organic traffic approach so maybe you’re gonna build a blog or build a youtube channel or start posting you know content that’s going to get people interested in your brand and you know spread awareness that way that probably would be a more difficult approach but you could also do a blend of all of these things as far

As marketing goes number five you’re gonna at that point you’re gonna want to build your box you’re gonna want to build a sample box because you’re gonna have to look at a number of factors first of all you have to consider the box size because you’re gonna have to include shipping costs and you also have to make sure that because this is on a recurring monthly

Basis make sure that the items that you’re shipping are going to be relatively the same size because if you sign people up and then all of a sudden you’re looking to ship a larger item and it’s gonna cost you more for shipping they’re probably not going to be very happy with a price increase so you’re probably gonna have to pay for that difference so make sure

You understand what your shipping constraints are gonna be in what size box you’re gonna use how many items are you going to include in each box what is the packaging material going to be and you also want to consider the aesthetics of what it is that you’re sending them if we’ve learned anything from apple it’s that quality packaging makes a difference you

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Know there’s a reason that when you open up the box for an iphone it’s very snug and it comes off very slowly that’s something that they do on purpose and at this point you’re going to use all these factors to determine your pricing and what you’re going to charge for this subscription service after this you’re gonna collect leads so the best way to do this is

Through building an email list so what you would probably do is maybe start off with your facebook targeted advertising campaign and generate some interest and try to build an email list have people sign up and say we’re gonna contact you once we launch this and you could also at that point work on building your social media presence and then once you’ve built up

Enough leads to the point where you think you’re going to convert a good number over to subscribers that’s when you’re actually going to launch this business and at that point you’re gonna fund your operations through the subscription revenue so once you have more people subscribing you’ll be able to spend more money on advertising and you’ll be able to order

Stuff to put in these boxes and it kind of funds itself at that point and the great thing about this is as far as the number of items you order you’re going to know exactly how much you should order as far as what you’re putting in these boxes because you already know how many people are subscribed to your service and then at that point what you’re gonna do is

You’re just going to scale the business over time and a couple ways you can do this is taking your revenue from your subscriptions and increasing your advertising budget you could also outsource your fulfillment if you don’t want to be the one putting everything in boxes and mailing it out and also just if you’re doing a good job of what you’re doing and you’re

Really targeting a specific customer and giving them great products then word of mouth will happen on its own and people are gonna spread the word about your product honestly i think it’s a fantastic business idea probably one that’s a little more expensive to start than some out there but i just see a huge potential with it and when you’re seeing big companies

Like gnc and you see a lot of big players getting involved in these subscription boxes i think that just tells you something that this is a really big thing and while there are a lot of people doing it already there’s a ton of categories where i’m sure people aren’t doing this yet so if you guys have a cool idea maybe consider starting a subscription box service

Of some kind anyways guys that’s all i got for this video if you did enjoy it please drop a like and if you’re new to my channel please consider subscribing to be notified if any future uploads and as always i thank you for taking the time to watch this video you

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How To Start A Monthly Subscription Box Business By Ryan Scribner

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