Why paying members are flocking to this under-$20 subscription

Yahoo Finance Video

Fri, February 13, 2026 at 5:00 AM GMT+9

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Trying to turn followers into revenue? This CEO explains how to do it…

This week on The Big Idea with Elizabeth Gore, Outfit Formulas CEO & Founder Alison Lumbatis joins the show to answer the question: _How do I turn followers into paying members? _Lumbatis shares how she transformed her company Outfit Formulas from free blog content into a $19-a-month membership. By focusing on value, simplicity, and pricing psychology, she built a scalable subscription business from a loyal online audience.

To check out more from this episode of The Big Idea, click here.
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This post was written by Lauren Pokedoff

Video Transcript

00:00 Speaker A

So I created the outfits around it like meal planning but for your closet. And so I launched it on the blog. I said, hey, I’m doing this thing. You guys asked for the shopping list. It’s here, but I’m going to put the outfits together too. It’s a monthly thing, like you’ll have 30 days of outfit ideas to create from this list or you can even create a whole season’s worth if you want to. And I thought, I’m going to be so excited if 50 women, please 50 women sign up for this. Come on, 50.

00:29 Speaker B

00:30 Speaker A

I got 500 that signed up out of the gate. And that was just

00:33 Speaker B

When you say signed up, are are they paying to be members?

00:36 Speaker A

Yes, they were paying to be members and this was a membership site that I cobbled together on the back end of my, like I did not know what I was doing at this point in time, but just really set something up with, you know, they just had to put in the password once they paid, gave them permissions and and then they had access and and back then we were doing it in PDFs. So they had these printables that they could put in binders and notebooks and and it just kind of grew from there and and has ever since then. That was 2014.

1:04 Speaker B

How did you decide that price point? I feel I feel like that’s a really tough, you know, is is it $2? Is it 200? How did you think that through?

1:11 Speaker A

Yes, pricing is always so tricky. You know, it’s about perceived value, right? And uh, we started out a very low price point. I think I think the first program was $9 and then it went to 19 and that’s kind of where we’ve stayed ever since then.

1:24 Speaker B

monthly.

1:25 Speaker A

$19 per month. And in the beginning it was a seasonal charge, but over time we decided to move into a monthly program and we’ve stayed there ever since then. And it’s, you know, for for a membership site, that’s a pretty good value, $19 monthly. Uh, and we haven’t really had to make any changes since then.

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