The number of businesses offering monthly subscription services has only grown this past year, but it could be larger if more businesses knew how to get started.
That’s the logic behind Cratejoy’s new Subscription School news/resource website, which launches today. Cratejoy offers companies a simple solution for creating, managing, and running a monthly subscription service for a $30 monthly fee and a cut of each transaction. The startup launched back in October with about 200 clients, but it now has well over 1,000 using the platform, with a particularly large number of food-related companies signing up. The company also revealed to VentureBeat that a handful of its clients are seeing upwards of 10,000 subscribers, too.
“If you look at nearly every other industry, businesses that have a subscription model are leading the pack,” Cratejoy cofounder Amir Elaguizy told VentureBeat. He noted several growing companies seeing success with subscriptions, including Dollar Shave Club, Netflix, and Amazon. “The biggest problem we’ve seen for Cratejoy is in helping these first time subscription businesses.”
Elaguizy said many of the frequent questions clients would ask are addressed in the new Subscription School site, but the startup also hopes to become an ultimate “how to” resource for the subscription business world. He also explained that while Cratejoy is offering a one-size fits all approach to the technical aspects of a subscription service, every business is different, making it difficult to provide answers to questions many entrepreneurs are asking.
“What we’ve been most surprised about is how many hyper local companies have started adding a subscription element to their business and are already doing really well after just a few months,” Elaguizy said.
The Subscription School site offers business advice for marketing, packaging/fulfillment, how to handle customer service, and more. In the future, Elaguizy said the site will also publish columns and essays by leaders of existing subscription companies.
Founded in 2014, the Austin, Texas-based startup has raised $6.2 million in funding to date from CRV, SV Angel, Y Combinator, Capital Factory, Andreessen Horowitz, and others.