Instagram Subscription Model in Print on Demand Business

Anna Navolokova, Marketing Manager in Multi-Programming Solutions  •  11 min read

When you think you have already made everything possible for your POD store development, we suggest exploring new opportunities to refresh an entrepreneurial approach, opening new sources of revenue, and improving customer relationships. In this article, we’ll define a subscription business model as one of the lucrative methods for building a thriving e-commerce shop. Moreover, we’ll discuss how clients can pay for unique offerings within your Shopify store and dedicated Instagram account.

So, keep reading to learn more about the exciting possibilities you can realize online.

Table of Contents

What is the subscription business model?

How subscription business models work in POD

How to start your own subscription business

Example of a subscription business model

Conclusion

What is the subscription business model?

POD activity can become more predictable for entrepreneurs who utilize a subscription model in e-commerce. Unlike the traditional retailing algorithms, where store owners receive revenue per item sold, here you get multiple payments (monthly or annually) from a single client for prolonged access to the print-on-demand service or exclusive products. 

This approach prioritizes customer retention over acquisition, as keeping a steady income from loyal buyers becomes less challenging than continuously generating new leads.

Which type of business is most likely to use the subscription model? Regarding online sales, such a method is suitable for vendors offering physical or digital goods. For example, grocery or beauty companies can deliver products based on their established plans or personalized customers’ orders. Content makers can charge monthly payments to enable access to new videos or articles. To better understand how this business model works let’s take as an example monthly Telegram Premium payments for animated avatars and stickers or streaming services like Netflix to get access to the latest series and TV shows. Like any other one, the subscription business has its pros and cons. For online store owners, the main benefits are the following:

• It becomes easier to forecast potential profit by calculating active clients. If your strategy implies selling custom stuff regularly to any prolonged follower, you can predict required volumes more precisely and plan your supplies or possible investments into business development.
• Entrepreneurs receive more cash on hand as the Shopify and Instagram subscription model is paid in advance. Clients can also choose annual plans, often at a discount (cheaper) price than partial payments.
• Sellers invest less money in marketing and promotion to recruit new clients than in the pay-per-product approach. Here, you leverage part of a budget to enhance users’ engagement and build solid relationships with followers.
• Upsells and cross-sells reveal an additional source of revenue. It becomes easier to offer complimented items to loyal customers as they already appreciate your valuable service.

The disadvantages of the subscription business model include some companies undercutting the competitors’ prices trying to compete in the market. This may be a tough situation if you aren’t occupying any unique niche. So, to profit, you should sell a lot every month. This approach is lucrative when the economy thrives but may fail during a recession because non-essential services will fade into the background.

Still, let’s think positively and develop a brand that is adaptive to any environment. We’ll start by defining how a subscription business model functions in POD. First, we’ll describe how to use this approach in Shopify and describe setups for Instagram profiles. You can leverage both ways for additional profit. Still, it will require wise planning and management.

How subscription business models work in POD

Just like in any other membership business model, entrepreneurs can choose from several possible variations of the revenue-generative approach. Each one has its advantages and offers extra value compatible with diverse business goals.

Replenishment 

When applied in Shopify stores, this method is one of the most cost-effective for clients as it allows them to save funds due to discount prices. Buyers purchase similar items regularly and can automate their orders for a certain period. Ordinary clients (individuals) will hardly need new printed mugs or dog collars each month, so vendors should be very attentive while choosing this innovative subscription business model for their product assortment. The best decision for this type is to establish long-term cooperation with other businesses (retail stores) capable of regularly repeating large volumes of purchases.

Access

Within this paid plan, followers will receive the right to enter special offerings. You may provide lower prices for subscribers, organize competitions for a valuable prize among clients, add video content or useful guides, design unique prints only for a limited category of customers, and much more.

This model allows POD brands to offer enhanced personalization, uniqueness, greater value, and the ability to sell more products on Instagram. Many users will be ready to pay for it if your service solves their pain points and stands out with improved quality.

Subscription box

One of the most widespread business model patterns on Shopify is using product boxes to attract followers. This approach can also be applied in Instagram for boxes of $20 - $80. They are lucrative enough to boost customers' interest and support long-term relationships with your brand. Depending on the type of goods you sell, packages can include sample apparel with new design ideas, complementary products (e.g., t-shirts-caps-socks, or pet bowls-collars-bandanas), products from TikTok trends, or seasonal offerings related to the upcoming event (Christmas or Mother's Day boxes, etc.).

Besides, your business may not be limited to a monthly subscription business model only. You can integrate this approach in addition to the existing and fully streamlined POD store. It’s a flexible way to explore the possibilities of a new method without risking losing volumes from your well-established sales and committing to a single revenue source.

How to start your own subscription business

The first thing you should know is the special requirements making you eligible to start. Let’s learn in detail how to start a subscription-based business on Instagram, keep your clients loyal, and increase sales. Check whether you meet the following criteria:

• Have a “Creator” account
• You’re at least 18 years old
• The page features 10000+ followers
• It is registered in the allowed location (see the full list)
• Comply with Monetization T&C, Community Guidelines, and Content Monetization Policies

Now, you should take the following steps described below. Besides, you may sell POD products via an independent online store (and add a link to the official website) and use an Instagram profile mainly for marketing or merchandising your stuff right from social media. Regardless of your existing selling status, the subscription business model will unlock undeniable advantages. Thus, you’ll receive an additional income source, become closer to your customer, and will receive a chance to find influencers to help you with promotion.

Set Up the Model

If you are eligible to be paid for followers, here’s what you should do to start earning money:

• Navigate to the Professional Dashboard from your business account
• Choose Your Tools → Subscriptions → Get Started
• Agree to the terms of use and press Next
• Add financial information to receive payments
• Set a monthly price. A calculator will help you to predict income depending on the number of followers
• Press Publish and Create

Now, customers can see a notification and learn the details of new propositions.

How much to charge?

The platform offers fixed prices, but you can choose a suitable one for your Instagram business model from $0.99, $1.99, $2.99, $4.99, $9.99, $19.99, $49.99, and $99.99. The exact amount depends on your content's value, chosen POD niche, and target audience. If you plan to make a lot of effort in diversifying your service for subscribers, compiling gift boxes, and chatting live, then you should probably set the highest fee.

You can change the price for added value or service at any time, but it will apply only to new followers. All the previous customers will keep their paid plans until the term ends.

Choose a subscription idea

If you want to start a clothing custom business, harness the full power of print on demand Instagram marketing. Here’s an exclusive feature only subscribed users can get at your POD social media location:

• Reels and posts. Even regular content can be created only for a limited public. Just choose “Share for subscribers” and add news.   
• Social channels. Here, you can directly interact with your users, gather feedback on your products and the subscribers’ preferences for future mockups. The offer is active for only 30 days and can include up to 250 participants, including the creator (you). But you may launch as many social channels simultaneously as you wish. Besides, this limited edition may drive even more interest as it has a vibe of exclusivity, which many buyers are searching for.
• Stories and highlights. You can record and upload videos that are visible only to followers. For example, choose this opportunity to announce new arrivals or showcase the backstage of your production line (in case you print products on your own). Your customers will see stories in a purple circle for the next 24 hours. But you can add them to highlights that are available at any time.
• Special Badges. Users who pay to follow your page will receive purple badges, which will make them recognizable among others. The psychology of the subscription model is simple. For a modest commission, clients will feel themselves a part of something unique and valued, like your print-on-demand community.
• Live broadcasts. You can share everything from the working routine or the process of designing products to packing orders and driving to the post office. Use the subscription business model metrics (monthly recurring revenue, customer acquisition cost, etc.) to define the effectiveness of your efforts.
• Special offers. Utilize unique promotions to attract new followers and keep loyal ones with 50% off the price for the next five connected clients. If someone decides to cancel the subscription, you may also add a pop-up menu offering a free month if they stay.

Now, it’s all up to you. Generate new ideas on how to engage the public, add content, and interact with your clients, increasing the value of custom print on demand products. Get familiar with best practices for utilizing subscription business model ideas and brainstorm your own insights on how to improve customers' experience.

Example of a subscription business model

Look how other businesses and individual entrepreneurs use the possibilities of Instagram and other platforms by offering subscriptions to engage their clients and enhance relationships. For example, a retail store, FabFitFun, from the start, offers new clients $200 + a seasonal gift box for the annual paid membership. The brand sends special packs perfectly suitable for the season, including 6-8 related items, like sunglasses, towels, creams, flip flops, and more. Customers can prepay four packages ($54.99 per box) and save $60 compared to a single payment.

Kim Haberley, an Australian hair salon owner, used Instagram as one of the best marketing channels to promote her business, build a strong community, and develop her educational courses for other hairdressers. With 3.1k subscribers, her brand now generates AUD 31k monthly from social media only.

Aliza Kelly, an astrologer, once realized how she could monetize her account, share knowledge, build a deeper connection with her followers, and, of course, gain profit. Her membership now counts over 140k users. Aliza explains her success with the unique content she creates to satisfy customers’ preferences and respond to their support.

Conclusion

Now you know what the subscription model in e-commerce is and how it can help your business gain additional revenue and people’s trust. Applying this approach to your print on demand store is not only about earning more money but creating a solid foundation for future scaling and improvement. With unique content and offerings for your followers, you can show more care and interest in your clients. 

This e-commerce model allows entrepreneurs to enhance customer experience, interact with users, and receive valuable feedback. Such an approach helps keep retention levels high, which is more intelligent than searching for new clients day after day. With loyal customers on your board, satisfying their demands and adapting to quickly changing market trends becomes easier.