Enter The Subscription Economy

We are living in a subscription economy where the relationship between service providers and customers is shifting from transactional to relational. This change is driven by the need for ongoing value, peace of mind, and convenience.

Whether it be your local gym, Netflix or favourite coffee roster the subscription model allows businesses to offer continuous support and service, creating a long-term relationship that enhances customer satisfaction and loyalty.

This relational approach is evident in various industries, from concierge medicine to home services, and now extends to creative services through Design Subscriptions. This model provides a scalable, predictable, and frictionless solution that aligns with the evolving expectations of modern consumers.

The agency retainer has been around for some time within traditional agencies but in 2022 they were experiencing slower growth overall. With reduced profits and falling profit margins some began adopting the principles of the Design Subscription modal adapting the traditional retainer by leveraging new tools to streamline payment, communication and design delivery. These tools aim reduce real time communication in the form of meetings and facilitate asynchronous working allowing for deeper focus - this increases the quality of collaboration and frees up capacity for more clients.

Understanding a Design Subscription

For clients the Design Subscription model allows them to pre-purchase a set amount of design time monthly, which can be used flexibly across various design needs. This model is similar to subscriptions for media streaming or software services, offering predictability and cost-efficiency. If you have a regular demand for design work they are a flexible solution with a number of benefits.

1. Improved Turnaround Time

A Design Subscription ensures faster project completions through a dedicated team that can often start within 24 hours, streamlining processes. These services provide access to advanced design tools and frontier techniques without additional investment, along with regular updates and iterations to keep designs relevant and effective.

For example, grocery delivery business Imperfect Foods increased their turnaround time by utilising a Design Subscription service, achieving a swift 12-hour turnaround for urgent projects.

2. Increased Capacity

Design Subscriptions allow for a measure of scalability to meet increasing demands. They are ideal for small teams with limited budgets, agencies needing more design resources, or larger companies requiring fresh ideas and skills.

Reddit's in-house creative team leveraged a Design Subscription to manage multiple projects simultaneously for its rebrand, focusing on strategic vision while the subscription service handled production. This collaboration helped Reddit efficiently handle large production tasks.

3. Higher Quality Design

Building a relationship with a dedicated design team is one of the key benefits of a Design Subscription. This relationship fosters a deep understanding of your brand, ensuring that the designs produced are consistently aligned with your brand’s vision and goals.

UK Innovation Centre, CPI, unhappy with their experience on freelance platforms, partnered with inndio to receive unique, high-quality designs that instilled trust in their network of customers. This relationship quickly delivered hand-crafted designs tailored to thier specific brand story.

4. Fixed and Flexible Costs

Design Subscriptions offer a predictable cost structure, allowing for better budgeting and financial planning. The fixed monthly fee covers a set amount of design time, providing cost efficiency compared to hiring full-time employees.

With additional costs for recruitment fees, bonuses, national insurance, pensions, training, office space, and equipment in the UK, the total cost for a new employee can be closer to £50,000 in their first year.

With a Design Subscription, you avoid these initial hiring costs and have the flexibility to pause and resume your subscription as needed, only paying for the time your designer is working on your project.

The Design Subscription Benefits for Start-ups and Investors

• Cost-Effective Solutions: A fixed monthly fee helps in budgeting and avoids high upfront costs.

• Scalability: Easily scale your design needs without the hassle of hiring or laying off staff.

• Quality and Consistency: Access to professional designers ensures consistent, high-quality output, maintaining brand image.

The Design Subscription Benefits for Agencies

• Enhanced Capacity: Supplement your team with additional talent, meeting increased demand efficiently.

• Focus on Core Activities: Delegating design tasks frees up your team for strategic projects.

• Innovation: Fresh perspectives from an external team keep your designs up-to-date with current trends.

The Design Subscription Benefits for Marketing Teams

• Reliable Alternatives to Freelancers: Dedicated resources ensure timely and consistent quality.

• Strategic Collaboration: Build long-term relationships with a team that understands your brand.

• Comprehensive Services: Access diverse design skills from graphic to web design under one subscription.

How to Choose a Design Subscription Agency in 2024

With the growth in the number of Design Subscriptions over 2023 and 2024 making an informed decision when selecting a Design Subscription agency can be hard. Here are a number of things to look for:

Value Proposition: Look for agencies that clearly outline their services and benefits without unnecessary complexity. Ensure the services are specific and tailored to your needs rather than a one-size-fits-all approach. Do they know your market, are they familiar with your audience and do they have a skill focus?

Intrinsic Value Creators: Choose agencies with proven, consistent creators. Check their portfolio and case studies for quality and consistency. Avoid agencies relying on big names without substantial involvement.

Communication: Assess the agency's communication process. They should provide regular updates and detailed progress reports without throttling the number of revisions or requests. They should be using a client portal to allow you to request design tasks and manage billing cycles. Ensure they use communication tools like Slack or Microsoft Teams for direct contact when you have questions.

Be aware that many Design Subscriptions try to minimise meetings by working asynchronously so they will often record videos using tools like loom to convey information - this good practice can save time for you and the designer.

Expectations and Commitments: Ensure clear expectations regarding the duration, scope, and pricing of the service. Understand cancellation policies and long-term commitments. Although Design Subscriptions offer attractive 'No Contracts' they are still often governed by a terms of use policy in the same way subscription software is covered by terms - ensure you read these carefully to clarify flexibility for accommodating changing needs.

Social Proof and Reputation: Look for agencies with strong client testimonials and successful case studies. Investigate their industry reputation for reliability and quality.

Strong Values: Choose agencies that document and live their values. Consider agencies that treat their creatives well. Ethical practices often lead to higher quality and sustainable service delivery.

Consistency and Sustainability: Assess the agency's ability to maintain consistent quality over time. Ask about their workload management and scalable processes to support your growth without compromising quality. Be aware that most one man studio Design Subscriptions can only manage a maximum of 5 to 7 active clients simultaneously.

Why Wouldn't I Just Hire a Full-Time Designer?

Cost of Hire
Hiring a full-time designer involves significant costs beyond salary. Additional costs include recruitment fees, bonuses, national insurance, pensions, training, office space, and equipment. Companies typically spend an average of £3,000 to hire a new employee (as reported by Glassdoor in 2020). However, for organisations with over 500 employees, this cost nearly doubles. On top of that, it can take up to 52 days to fill a vacant position.

High Salaries
If a company is looking to hire a full-time senior-level designer in the technology sector, they can expect to pay anywhere between £58,000 to £74,000. This figure includes additional expenses such as benefits and training.

Project Work
Startups may sometimes find themselves without enough project work to keep their employees occupied. This results in wasted time and money.

Layoffs in Tech
The tech sector experienced a significant number of layoffs in 2023 through to Jan 2024 including many creative roles. Hiring departments are encouraging marketing and design teams to hire design resource externally drawing on Traditional Agencies, Freelancers and Design Subscriptions which can offer the most flexibility and value for money.

Why Shouldn't I Just Hire a Freelancer Using a Freelance Platform?

According to a 2021 Upwork report, 80% of large corporations planned to increase their use of freelancers, and during the pandemic, there was a 30% increase in demand for freelancers on these platforms. Today freelance platforms have become a normalised dependence for companies.

Freelance platforms may not always be suitable for public sector entities to procure design services, as they often require comparative quotes or go out to tender. In addition, Freelance Platforms may not have the necessary capabilities to support the financial governance of the public sector. As a result, freelancers may face limitations in their ability to quote for larger public-funded projects.

Depending on the nature of the work you require, using a freelance platform like Fiverr might be a suitable option for you. However, it is important to note that lower prices do not always guarantee top-quality work, experienced professionals, or efficient service.

The high amount of competition among the large number of freelancers on these platforms often results in a race to the bottom, with freelancers undercutting each other's prices. Additionally, the low barrier to entry means that the quality of work can suffer, making it difficult for freelancers to earn a decent income. As a result, companies may receive low-quality work, leading to additional costs and delays.

When utilising freelancing platforms, it is common to have restrictions on the number of revisions and requests you can make. By contrast, a Design Subscription service offers unlimited revisions and requests across all subscription plans, ensuring that you receive the best possible service.

What is the Average Cost of a Design Subscription?

The average cost of a Design Subscription can vary based on the services offered and the target market. Most Design Subscriptions services offer a range of pricing tiers to accommodate different needs and budgets.

Budget Design Subscription services costs typically range from £300 to £1,500 per month.

Higher-end services range from £3,400 to £11,500 for more comprehensive and specialised design solutions, or access to teams and closer communication.

What Can Be Achieved in One Month of a Design Subscription?

Design Subscriptions offer good value for money when you review what the the level of output is. The following list showcases the breadth of work a dedicated design team can deliver through a subscription model, providing flexibility, consistency, and quality across multiple channels:

Landing Page Design and Development: A user-friendly layout with compelling visuals and clear calls-to-action, implemented in Framer for an interactive experience.

Illustrations: Clear, impactful visuals representing data, used across websites, videos, and emails, ensuring cohesive branding.

Video Explainer: Engaging animations with script creation, storyboarding, and synchronised animations to summarise key findings and encourage webinar participation.

Social Media Banners: Eye-catching graphics with concise information and consistent branding for platforms like Twitter, LinkedIn, Facebook, and Instagram.

Email Templates: Visually appealing designs consistent with campaign branding, featuring clear call-to-action buttons to inform and engage subscribers.

Conclusion

A Design Subscription is a versatile and cost-effective solution for various organisations, ensuring high-quality design services tailored to your needs. Whether you’re a start-up, an agency, or part of a larger marketing team, a Design Subscription can provide the flexibility, efficiency, and expertise necessary to elevate your brand!

P.s. If you are looking for a Design Subscription, inndio offer affordable monthly design for all you needs.