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Startup Story: A Case Study of Design Subscription Service- Fanxy

Startup Story: A Case Study of Design Subscription Service- Fanxy

Story of a founder who leads $20k MRR design agency

SK
October 14, 2024 • Reading Time: 6 minutes

👋 Hey, SK here! Welcome to XTEN10X. I write about product management, startups and growth stories based on real-world learnings.

I’m back with another startup story today. If you’ve missed the first one, check this out!

If you know a founder in your network who could be featured in this series, write to me at [email protected].

Lessons for Founders and Product managers:

Take bold steps and try unconventional methods to find problems
Stick to core pain point and try to address it in most efficient way possible
Don’t underestimate the power of cold outreach
Make communications simple for your audience

The Solopreneur Journey: From Idea to Growth

In today’s dynamic business landscape, solopreneurs are carving out a niche for themselves, merging passion with pragmatism to build sustainable ventures.

Welcome to the startup series where we explore the journeys of solopreneurs and startups, from the origin to scaling plans.

Let’s dive into the story of Fanxy, a design subscription startup founded by Maksim Uriupin from South Africa, how it transitioned from a traditional design agency to a thriving subscription-based model which is now doing a MRR of 20K USD.

The Idea Spark: Inspiration Behind Fanxy

Fanxy emerged from a keen observation of the market.

Maksim noticed that many projects were plagued by low-quality designs.

Realizing that the traditional agency model, which relies heavily on constantly acquiring new clients, was becoming unsustainable, Fanxy pivoted towards a subscription model.

This approach not only provided a steady revenue stream but also aligned with the growing trend of businesses preferring flexible, subscription-based services over long-term commitments.

The below table explains the differences between a traditional agency model and subscription model:

Dimension	Traditional Model	Subscription Model
Pricing	Project-based or hourly billing	Recurring monthly or annual fee
Engagement	One-time project or campaign	Ongoing, with recurring deliverables
Customization	Highly customized for each client	Predefined services, less customization
Commitment	Short-term, based on project scope	Long-term, continuous relationship
Scalability	Less scalable, requires new contracts per project	More scalable, standardized services
Risk	Higher risk for scope creep and irregular income	Lower risk with predictable costs and cash flow
Client Relationship	Transactional, ends after project completion	Long-term, based on continuous value
Cash Flow	Irregular, dependent on new projects	Steady, due to recurring payments
Service Delivery	Focus on achieving specific, one-off outcomes	Focus on ongoing delivery and support

By the way, there’s a fun story behind the name- Fanxy: One of the founder’s mentors said to him “Design should be fancy and sexy. Period”. When Maksim started a design agency, it was pretty obvious for him about how to name it!

Target Audience: Who is Fanxy For?

Fanxy’s design subscription service is tailored to meet the needs of both small and large companies:

- Small Companies: Founders and C-level executives who need high-quality design services without the overhead of hiring a full-time team.

- Large Companies: VPs, department heads, and managers who seek reliable, consistent design output to support their marketing and operational needs.

Top 3 Use Cases: Maximizing Fanxy’s Potential

1. Brand Identity Design: Creating cohesive and compelling brand identities that resonate with target audiences.

2. Marketing Collateral: Designing brochures, social media graphics, and other marketing materials to support growth initiatives.

3. UI/UX Design: Enhancing user experience and interface designs for digital products.

Tech Stack: Tools of the Trade

Fanxy’s operations are powered by 3 main no-code apps:

- Notion: For project management and collaboration.

- Figma: As the primary design tool.

- Webflow & Framer: For building responsive, interactive websites.

Gaining Initial Traction: The Cold Outreach Strategy

Fanxy’s initial customer acquisition relied heavily on cold outreach.

By identifying potential clients who would benefit most from a subscription-based design service, the team was able to craft personalized messages that resonated with their pain points.

This direct approach, combined with a clear value proposition, helped Fanxy build a solid customer base.

💡Some key advantages of cold outreach include include:

Broad Reach: Connect with potential clients who may not have discovered your brand organically.
Cost-Effective: Outreach, especially via email, can generate significant returns without heavy spending.
Immediate Feedback: You can quickly gauge interest and refine your pitch.
Personalization Potential: Tailor your messages to the recipient’s specific needs, making them more effective.
Relationship Building: Cold outreach opens doors to long-term relationships and lead nurturing.

Lessons Learnt: The Power of Simplicity

One of the key lessons from Fanxy’s journey is the principle of “less is more.”

By focusing on simplicity in both their service offerings and customer communications, Fanxy was able to streamline their operations and deliver consistent value to their clients.

The team also learned that cold outreach, when done correctly, could be a scalable method for customer acquisition.

💡Tips for successful cold outreach

Lead with Value: Offer something beneficial before asking for anything.
Personalize Beyond Names: Show you’ve researched their business or pain points.
Short and Concise: Keep emails brief and to the point.
Soft Call to Action: Avoid pushy asks; start with something small, like a brief chat.
Follow Up Respectfully: A polite follow-up can be the difference between success and silence.

Scaling Plans: The Road Ahead

Fanxy plans to continue scaling through cold outreach, refining their approach as they gain more insights.

By leveraging their existing success and understanding the nuances of their target market, Fanxy is poised for sustained growth.

Conclusion: Embracing the Future of Agencies

Fanxy’s transition from a traditional design agency to a subscription-based model reflects a broader shift in the industry.

As more businesses recognize the benefits of flexible, scalable solutions, solopreneurs like the founder of Fanxy are leading the way, proving that with the right strategy and execution, the solopreneur journey can be both rewarding and sustainable.

If you’re a founder or product manager in need of a high-quality design service, do reach out to Maksim on LinkedIn.