Choosing your revenue stream(s) determines what kind of business you want to run. There are a myriad of ways to potentially earn money but success comes from implementing the right tools and business model for your company. For Fiber Club, Rommel and I have decided to pursue an optional subscription and ad based model.
What’s an optional subscription?
With a typical subscription model, you are required to pay for the service. Usually there are multiple tiers, of which you would choose the one most appropriate for your needs. (Examples include Netflix or a monthly yarn box.) We’ve decided to call this an “optional subscription” because you will not be forced to pay to use Fiber Club. It will exist as an option if you’d like to contribute financially and unlock fun features, but it will not be required.
Are you talking about a “freemium” model?
It is not quite a freemium model because all of the functionality will exist regardless of subscription or tier level. With a typical freemium model, the service is free up until a certain point. The free version of the app is a stripped down version of the paid app, often with limited functionality. The types of features we are thinking to include for the subscription are things like, the ability to change the app icon, or a fun badge to add to your profile. We will not be limiting functionality within the various tiers.
You mentioned something about ads?
Yes! We will include advertising space on Fiber Club. The specifics have not yet been hammered out, but we have decided to allow targeted, crafting related ads on the platform. More information will come as we work out the particulars.
After further discussion, Rommel and I have decided to eliminate listing fees entirely. Since the revenue generated from listing fees would have to be a significant portion of the pattern sale, it makes more sense to eliminate it entirely. That way, we can use it as a differentiator for Fiber Club than try to nominally recoup those costs.
So far our MVP differentiators include:
- App based
- Robust search and filter capabilities
- Curated selection of patterns and designers
- BIPOC owned
- No listing fees
Rommel and I have also been discussing the idea of streamling the MVP in order to release the first version of Fiber Club sooner. More information to come in our next update!
Originally posted on March 8, 2021.