How to Win in Consumer Subscription: The Key to Success

How to Win in Consumer Subscription: The Key to Success

In the competitive world of consumer subscription businesses, there are certain patterns that emerge among successful companies. One common thread that runs through all of them is an obsession with efficiency. These companies understand the importance of staying small, keeping costs down, and ultimately, becoming profitable.

Staying small is a strategy that many successful subscription businesses have employed until they find strong product-market fit, and often even beyond that. These companies have kept their team sizes under 10, working long hours in small apartments or shared spaces. Every outgoing dollar is questioned, and the focus is on maximizing efficiency in every aspect of the business.

This obsession with efficiency has forced these companies to develop hacking skills. They have become masters at finding creative and cost-effective solutions to problems, and this has helped define the growth culture within their organizations. By staying lean and prioritizing ruthlessly, these companies have been able to achieve sustainable growth.

The founders of the biggest B2C subscription companies have another commonality - they are immigrants. Noom and Grammarly's founders hail from Ukraine, Duolingo's founder is from Guatemala, Calm's founder is from the U.K., and Spotify's founder is from Sweden. It's interesting to note that these founders, coming from diverse backgrounds, have been able to create successful subscription businesses in different industries. This highlights the importance of diversity and fresh perspectives in driving innovation and success.

So, what can we learn from these successful companies? Here are three actionable pieces of advice:

• 1. Stay lean and focus on revenue over growth: It's essential to keep your costs low and prioritize generating revenue before chasing rapid growth. This allows you to build a solid foundation and ensure sustainability in the long run.

• 2. Develop hacking skills: Embrace the mindset of finding creative and cost-effective solutions to problems. This will help you stay agile and adaptable in a fast-paced business environment.

• 3. Embrace diversity and fresh perspectives: Don't be afraid to bring in people from different backgrounds and cultures. Their unique insights and experiences can bring a fresh perspective to your business and help drive innovation.

In conclusion, winning in the consumer subscription industry requires an obsession with efficiency, staying small until product-market fit is achieved, and a focus on revenue over growth. By staying lean, developing hacking skills, and embracing diversity, businesses can position themselves for success in this competitive landscape. So, take these lessons to heart and give your subscription business the best chance to thrive.