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Oct 22, 2024
Web Design
The Rise of Subscription-Based Design Services
Baked Design Studio achieved $1.2M USD per year through design services using a subscription-based model, where an agency provides businesses with unlimited design services for a set monthly fee. It is a cost-effective solution for businesses that need regular design services but don't want to hire a full-time designer. The model gained hype in 2023/2024 with X accounts promoting their services, challenging the standard project-based design services that the market was accustomed to. What are the benefits and drawbacks of each one?
Assessing Service Needs
Services Need Frequency: If you have a one-time demand, like building a landing page, a project-based model is better suited for such a unique need. However, if you require ongoing updates, such as new website pages every month, a subscription model would be more appropriate.
Scope of Work: In a subscription model, the scope is more flexible because the business relationship is ongoing. In a project-based model, the specific deliverables are clearly defined with a set start and end point.
Understanding Scope and Flexibility
Cost Structure: In a subscription model, payments are recurring, allowing for better cash flow management. However, in months with low demand, the company pays the same price, so it's important to ensure value is delivered every month. In a project-based model, the cost structure is typically a one-time fee or milestone-based, depending on the project phases, which ensures the company gets value from well-defined deliverables and deadlines.
Design Flexibility: In a subscription model, ongoing adjustments are expected because the company needs to receive the value it's paying for. In a project-based model, turnarounds based on feedback are normal, but new additions to the scope may require renegotiation or additional fees?
Comparing the Models
Speed and Turnaround Time: The volume of requests in a subscription model can cause turnaround times to vary, as these services often manage multiple clients, resulting in a queue system. In a project-based model, timelines are fixed and prioritized until the project is complete.
Design Ownership and Handoff: In a subscription model, since the relationship is ongoing, handoffs occur month-to-month. In a project-based model, all deliverables are handed off in full at the end of the project.
Choosing the Right Model
In practice, the subscription-based model is ideal for businesses that need ongoing design services for months, such as social media graphics and regular updates for websites and applications. The project-based model is better suited for companies with one-off needs, such as creating a new website, a branding package, or an MVP app. Each model serves different types of design demands, so it's essential to choose the best approach based on frequency, scope, cost, flexibility, speed, and handoffs.
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