Design as a subscription: How the recurring monthly fee is disrupting the agency model
Most of us have experienced the unparalleled convenience of subscription services in our personal lives, whether it be the many entertainment streaming services, food delivery, or your favorite monthly book club. It was only a matter of time before the membership model disrupted the way we work, too.
Yes, brace yourself — because for better or worse, the design world is having its own ‘subscription moment.’
Now, clients aren’t just dishing out huge sums for a one-off project. Instead, they’re happily swiping their cards for a monthly fee, which, in return, offers them the luxury of unlimited designs delivered at very fast speed (usually within just a day or two). It also allows them to request as many revisions as needed, without blowing out the scope of the project. Two big shots leading this trend are DesignJoy and DesignPickle, with other new services emerging all the time.
But why are designers and agencies getting on board the subscription train? And what does it mean for the design community at large?
Decoding The Subscription Business Model
Subscription-based models date back to the 1800s when customers could opt to get their newspaper delivered to their door regularly. But, thanks to the digitization of our daily lives, it’s recently swept across many industries, from media and fitness to transport. In fact, by 2025, the subscription economy is expected to reach a market size of $1.5 trillion.
Essentially, this model banks on consistent revenue from subscribers, through ongoing services or products. A predictable income stream, better customer retention, and opportunities for upselling or cross-selling are just a few of the perks of this model.
For businesses, it’s no longer about selling a product once but rather, creating a relationship where the value is exchanged and built over time. Sounds familiar? Streaming platforms like Netflix and Spotify have aced this, making binge-watching and endless playlists a part of our daily routines.
Why The Shift in The Design World?
The subscription model's allure for design agencies isn't just about predictable cash flow, but a combination of efficiency, growth, and savings. Unlimited design memberships can help make the agencies better in the following ways:
Operational Efficiency: Subscription models force agency owners to streamline their offerings. If anyone can simply subscribe to our services at the click of a button the offer needs to be very well defined and project scopes need to be clear. That’s why most agencies that do choose subscription models focus on graphic design work, as it's somewhat predictable. Agencies, armed with repeatable tasks, can better allocate resources and timelines. The result? Smooth operations, reduced errors, and rapid turnarounds.
Easier Forecasting: One of the biggest challenges faced by traditional agencies is staff forecasting. “Oh, if only we had two more people, we could take this great project on”. This line of thinking slowly but surely leads to an ever-growing team. And a bigger team needs larger and grander projects to cover the costs.
With the clearer workload horizon of a subscription model, agencies can strategically hire talent and invest in tools. Instead of struggling with fluctuating workloads, they can scale with insight and confidence.
Lower Sales & Marketing Costs: Shifting from relentless client acquisition to nurturing existing ones cut marketing expenses. With subscriptions, it's less about the chase and more about continuous value delivery. And even when we are chasing new clients, the sale is much more streamlined. We don’t need to prepare a pitch for each new client. Our website is our pitch.
On the other hand, the reason this model is so appealing to clients is because these design subscription services are usually priced considerably lower than, for example, hiring a full-time employee in high-wage markets. So, companies that can’t afford or don’t need full-time designers can get access to design services at a lower cost while having the most important benefit of employment – long-term work relationships.
However, the model isn’t without its challenges. The pressure of ongoing deliverables, managing multiple subscriptions, and ensuring value to every client, every month, can be daunting. Yet the results of the subscription model for design agencies are very promising so it’s worth a try for many of us.
What Does This Mean For Designers?
It’s easy to see how this model serves agency owners and clients. But, what about the designers who are actually doing the work, day in and day out? Luckily, there are some lessons to be gained here, too. Whether you’re a freelancer or an in-house designer, this approach can offer some nice lessons:
Business model = UX. Witnessing the shift in design agencies can inspire us to think about the relationship between business models and UX. If you are in a position to co-create a company's business model, brainstorm how changing a business model (such as adding a subscription) changes the UX. Aim for win-win situations. That is models that improve the business side and user experience.
If you are a design freelancer, try this model out on a small scale. But keep in mind that this model only works with certain types of design tasks. Offering highly ambiguous innovation projects might be a recipe for chaos. But preparing slide decks, infographics or digital ad visuals might work.
So, designers, as we continue to sketch, create, and innovate, remember that the business of design is evolving. Whether or not the subscription model is the future, it's certainly making waves right now.