Marketing

Why smart small businesses are using subscription platforms – and it’s not just for cashflow

Lucy Banks, who runs a PR and marketing agency for creators in the adult industry, doesn’t rely on social media algorithms to build her network.

Instead, she uses a private Discord server – and a small monthly subscription – to do what many small businesses struggle with: scale her services without burning out her team or turning away clients.

Banks is part of a broader group of entrepreneurs quietly tapping into the power of platforms like Patreon, Discord, and Subs. While subscription models are usually spoken about for their ability to generate recurring revenue, Banks told ISB that this is just one benefit she’s gained from it. The real appeal is the flexibility, reach, and community engagement.

“The membership price isn’t really the main goal of having the membership – it’s the residual things that come afterwards,” she explained.

Subscribers to the Million Billion Membership – a Discord-based extension of Banks’s agency, Million Billion Media – get access to expert industry advice, tools, and community support to help them build their businesses in the adult industry. But the membership doesn’t just provide educational resources – members also gain access to a private industry network, where Banks forwards any opportunities that her main clientele pass up on. The arrangement means she can expand the agency’s network without expanding headcount.

“We get approached day in, day out by people wanting to do brand deals and Instagram promotion with our creators,” she said. “For the bigger ones, we handle it – but for the smaller ones, we say, ‘Just join the membership and go and talk to the creators yourself,’ because it’s not worth them giving us a cut.”

A growing trend

Banks is part of a growing cohort of small-business owners using subscription platforms in creative ways – not just to pad out their income, but to deepen relationships with clients and funnel in new ones.

Mortgage broker Shaun Bettman uses Patreon to send strategies, market updates, and other educational material to his network of property investors. The subscription platform not only makes up around 10 to 15 per cent of his business’ income, but gives him a way to stay connected with clients on a regular basis.

“Would I quit mortgages for subscriptions? Nah,” he said. “But it’s proof that even in a hands-on industry, people crave ongoing value, not just one-off transactions.”

Over in the trades sector, electrician Daniel Vasilevski uses Patreon – as well as other platforms – to connect with a broader audience. He gives his patrons step-by-step tutorials, troubleshooting advice, and detailed videos on electrical work. Like Bettman, Vasilevski puts subscription income at about 10 to 15 per cent of his business’ income.

But Vasilevski also sees the Patreon as a funnel in, rather than an extension of his services to existing customers.

“It’s a great way to offer value to DIYers and other tradespeople who want to learn more and improve their skills,” he told ISB. “It’s opened up new conversations with potential clients and helped me stay top-of-mind when they need professional electrical services.”

The downsides

Conversations with business owners highlight a wide range of benefits to using subscription platforms – from maintaining long-term client relationships to generating passive income.

But as Banks pointed out, these platforms come with their own risks. Like any social or third-party platform, they’re subject to sudden policy changes that can affect how – or whether – a business can operate.

This risk is especially pronounced in her sector, where evolving censorship laws have repeatedly forced adult industry businesses off platforms that were once reliable sources of revenue.

“At the moment, Discord and Patreon and those types of platforms seem to be safer,” she said. “However, there was a time where Tumblr was safe, or Twitter, and the rules change so rapidly. So my suggestion to creators is to build email databases. That’s the only platform that you have ownership over.”

Despite the volatility of subscription platforms, Banks is still a vocal proponent of them – and she’s adamant that businesses in any sector can reap big benefits from them.

“I honestly think that every single business, no matter what, can have a membership or subscription platform in some capacity,” she said. “It works on so many different levels for the business. Not only do you have that recurring revenue each month, but you’re building a community that is so engaged, and all of that network is going to be advocates for you and your business.”

• This story was originally published on Inside Small Business.