Subscription Models and Custom Billing for Exclusive Content Platforms
Subscribing to services is becoming more common in different industries due to the growth of technology. Many customers are now using monthly payments for Netflix, Spotify, and Dollar Shave Club to regularly get items and services.
This is also happening with high-end and unique digital entertainment. People are making money by offering newsletters, podcasts, and market research reports through subscription billing platforms. By using such models, publishers have more chances to interact closely with their engaged users.
The article will look into the available subscription and billing options for those who sell exclusive digital content. We’ll cover the advantages of having subscriptions, check how prices and packages are set, examine custom billing, and mention some top choices in this area. No matter if you are running a membership program yourself or as part of a team, this post will show you how to use subscriptions to grow your business.
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The Rise of Subscriber Revenue
It is no longer true that advertising was the only way digital publishers could earn money, especially with options like using an adult payment processor to support alternative revenue streams. There are now more ways for companies to earn money, and membership programs and subscriptions have become very popular.
A study reveals that people tend to purchase online content if it provides them with something they value. A survey conducted by Whop showed that 30% of consumers purchased digital media within the past year. Many people are often willing to pay more for analysis and investigative reporting.
For publishers dealing in exclusive, specialized, or premium content, subscriber revenue has vast upside compared to display advertising. Some of the key benefits include:
- Recurring revenue that builds over time, leading to predictable cash flow
- Higher CPMs compared to programmatic advertising
- Direct relationships with a loyal user base
- Insights into audience needs and preferences
- Avoidance of fluctuations in the online ad market
- Faster load times and a better experience for readers
Sites that rely on subscribers earn more money per page than those that rely on ads in the news and information world. Users are increasingly ready to pay for industry research, financial analysis, and special hobby-related content.
Let us examine new pricing tactics that premium digital content companies use to secure consistent reader subscriptions.
Pricing Models and Packages
Users in the subscription model are charged regularly to use the platform’s restricted content. Paying the fee starts a subscription that automatically continues after every period unless you decide to end it.
Compared to one-time purchases, subscriptions allow creators to earn income over an extended period of time per customer. This recurring revenue adds up significantly.
For digital publishers, some popular subscription pricing models include:
- Flat rate – A single monthly/annual fee for full access
- Freemium – Basic content is free; premium content requires a subscription
- Tiered plans – Price varies based on level of access/features
- Metered paywall – Users get some free articles per month before hitting a paywall
Tiered pricing plans are widely used, where users pay incrementally more for higher levels of access. For example, a basic $5 per month plan may include email newsletters, while higher tiers add research reports, virtual events, multimedia content, and more.
When structuring pricing packages, here are some best practices:
- Offer clear differentiation between tiers
- Appeal to light, medium, and heavy user needs
- Include perks and bonuses in higher tiers
- Grandfather Earl subscribers at lower prices
- Raise prices gradually over time
- Regularly test and optimize pricing
Analytics gathered on subscription conversions and churn can inform pricing changes over time. For example, if uptake is low at a $20/month price point for niche industry analysis, perhaps $15/month would hit a better sweet spot between value and affordability.
Some publishers choose to limit subscriptions to an annual billing cycle versus monthly renewals. While this may turn some people away, annual subscriptions have benefits like:
- Fewer billing transactions per user
- Guaranteed revenue for the next year
- An incentive with discounts vs. monthly pricing
There are also more creative premium content subscription models emerging. For instance, the startup Steady charges users a monthly fee for expert financial advice tailored to gig economy workers. Online learning platforms like MasterClass offer an all-access pass to celebrity-taught video courses.
As you can see, there is a lot of room for innovation when it comes to packaging and positioning paid digital content.
Subscription Models and Custom Billing for Exclusive Content Platforms
Custom Billing Capabilities
To power subscriptions, content platforms need robust billing and payments functionality. This enables creators to:
- Set up automated recurring billing flows
- Integrate payment gateway APIs
- Manage transactions and revenue data
- Give subscribers self-serve account management
- Build pricing plans and coupons
- Securely store sensitive user data
Such billing systems are built to manage these needs for businesses with thousands of subscriptions. Apart from regular subscriptions, being able to offer custom billing and pricing by usage allows you to make more revenue.
Some examples of custom billing scenarios include:
- Charging per article, podcast, or asset accessed
- Usage meters for API calls, file downloads, or tools
- Metered plans based on word count or character count
- Billing in custom increments (ex., every 2 weeks)
- Time of access limits (ex, night vs. day passes)
- Physical goods billing, along with digital subscriptions
Usage-based billing models are well-suited for platforms like design asset marketplaces, AI tools, podcast hosting, and research databases. As digital content expands across new verticals, more publishers will likely take advantage of these flexible billing options.
Top Subscription Billing Platforms
Dozens of subscription management platforms have emerged to serve the growing cohort of digital creators and publishers monetizing through memberships and recurring revenue.
Here is an overview of some top solutions:
- Focused on newsletters and reader revenue, Substack lets writers publish paid or free subscriptions. Its full-service model includes payment processing, analytics, and writer payouts.
- Both software and SaaS companies and digital publishers can take advantage of an end-to-end platform. Enables subscription management, collecting money, and paying your vendors.
- Stripe Billing. Flexible API for managing subscriptions, invoices, payment routing, and revenue recognition. Made for developers.
- An indie creator ecommerce platform with digital product delivery and subscription capabilities.
- Enables creators to offer exclusive patron benefits at various monetary tiers. Suitable for YouTubers, artists, and podcasters.
- Buy Me a Coffee. Patreon-style service with a focus on micro-payments and tipping models versus full subscriptions.
- Ghost Members. Built into the Ghost blogging platform. Lets bloggers gate content and accept recurring reader payments.
These are only a few of the recent subscription options made for creators. This field is likely to grow bigger as more digital media companies switch to recurring ways of making money.
Which billing system is best for managing exclusive content subscriptions? It depends on your business needs and technical capabilities. Key considerations:
- Features – Metered plans? Usage pricing? Coupon codes?
- Ease of use – Admin UI? Developer-friendly APIs?
- Revenue model – Direct payments or creator payouts?
- Data and analytics – Subscription reporting? Churn metrics?
- Integrations – Payment gateways? CRMs? Accounting software?
Most subscription platforms highlight ease of implementation for non-technical users. But they also provide advanced functionality for developers via APIs.
As your membership program scales, you may outgrow basic solutions and need capabilities like:
- Multi-tenant architecture
- Higher limits for storage, bandwidth, and transactions
- International pricing and VAT compliance
- Custom checkout and portal branding
- Automated dunning workflows
- Complex billing rule configuration
- Sales tax and invoicing support
- Affiliate and partnership management
Choosing the correct subscription billing system can simplify how you make money from special digital content and support your upcoming growth.
Conclusion
More and more, digital publishers and creators are turning to subscriber-supported business models. Charging ongoing fees for exclusive content allows such businesses to have more satisfied customers and consistent finances.
A variety of subscription billing and payment services are designed to suit both small bloggers and bigger research startups. As content creators switch to user subscriptions, pay-per-click income is expected to decrease over the years.
By combining exceptional digital services, smart pricing, and efficient technology, the subscription model offers publishers a great way to succeed as direct sellers of media. Regular payments from readers help ensure more high-quality digital information and freedom for journalists. The use of subscriptions is still not widespread in various categories of content.
Subscription Models and Custom Billing for Exclusive Content Platforms