How Book of the Month Turned Curated Reading into a $50M Subscription Empire—And How You Can Too

Most people think book clubs are just a casual hobby—something your aunt does while sipping wine with her friends. But what if I told you that a simple book club subscription turned into a $50 million business? That’s exactly what happened with Book of the Month (BOTM), a company that started nearly a century ago, nearly collapsed, and then made a massive comeback by adapting to the modern world.

This is the story of how BOTM went from a mail-order startup in 1926 to a thriving, profitable business today—and how you can apply these lessons to build your own high-margin, recurring revenue subscription business.

The Birth of a Subscription Giant (Before Subscriptions Were Cool)

In 1926, long before the internet, Amazon, or influencers, Harry Scherman launched Book of the Month as a simple, powerful idea: people love books, but they hate decision fatigue. The company would curate the best new books, ship them straight to customers, and build a community around reading.

The result? A massive win. Within 20 years, BOTM had over 550,000 members, and being featured as a BOTM selection basically guaranteed a book would be a bestseller.

But as we’ll see, even the best business models can fall apart if they don’t evolve.

Growth, Stagnation, and a Near Collapse

For decades, BOTM was a powerhouse. It survived multiple ownership changes, a merger with Time Inc., and even the rise of big-box bookstores. But then, like many businesses that fail to innovate, BOTM started losing relevance.

By the early 2000s, books were going digital, Amazon was dominating, and the idea of mailing hardcover books every month seemed outdated. BOTM was stuck in the past, and it nearly killed them.

The 2015 Relaunch: How BOTM Made a $50M Comeback

Most failing businesses don’t get a second chance. BOTM did. In 2015, a group of entrepreneurs saw an opportunity: subscription businesses were exploding (think Dollar Shave Club, Birchbox, etc.), and social media was creating communities around every niche imaginable.

Here’s how they engineered a massive turnaround:

• Curated Selections: Instead of sending random books, BOTM focused on highly curated picks from emerging authors (75% of books were from new writers, giving customers something fresh they couldn’t get everywhere else).

• Targeted Marketing: They zeroed in on millennial and Gen Z women, using Instagram and influencers to drive growth.

• Aesthetic & Exclusivity: BOTM made their books special editions with unique designs and early releases, turning them into collector’s items.

• Community & FOMO: They built an engaged community that wants to be part of BOTM—book lovers who flex their monthly picks like sneakerheads show off limited-edition Jordans.

• Referral & Influencer Strategy: They leveraged book influencers, Bookstagrammers, and BookTok creators to spread the word authentically.

The results? Within two years, BOTM surpassed 100,000 paying members and became a dominant force in book culture again.

The Financials: How Much Money Does BOTM Make?

Let’s talk numbers—because inspiration is nice, but cash flow is king.

• In 2017, after just two years of relaunching, BOTM was making $10 million in revenue.

• By 2024, estimates suggest it’s now a $50 million/year business.

• With a $16.99/month subscription fee and thousands of customers adding extra books at $10.99 each, the recurring revenue stacks up fast.

• The secret sauce? Bulk purchasing. They buy books at deep discounts from publishers (sometimes as low as $4 per book) and resell them at a markup while still offering customers a great deal.

What Can You Learn From This?

If you want to build a subscription business that prints money, steal these principles:

1. Curation is King - People don’t want more choices; they want the right choices. Whether it’s books, coffee, wine, or art, make the selection process effortless for customers.

2. Subscription = Recurring Revenue = Wealth - BOTM doesn’t start at zero every month. Their revenue is predictable, which makes scaling much easier.

3. Community Sells - When your customers love being part of your brand, they promote it for free. BOTM built a movement, not just a service.

4. Influencers Drive Growth - BOTM grew fast because they harnessed social media, particularly Bookstagram and BookTok, where passionate readers share recommendations.

5. Exclusive = Premium - People will always pay for things they can’t get elsewhere. Limited editions, early releases, and VIP perks create demand.

Final Takeaway:

Book of the Month isn’t just a book club—it’s a case study in modern business success. A dying company turned into a $50M/year empire by embracing curation, subscriptions, and influencer-driven marketing.

If you take one thing from this: a simple idea, executed well, can change your financial future.

So, what are you waiting for? Launch this week.