Is a Membership Business Model Right For You? 5 Questions to Ask Yourself Before Taking the Plunge
Starting a membership is thrilling, nerve-wracking, and everything in between, but how do you know if it’s the right option for you?
The decision to start a membership program isn’t for everyone.
No doubt, it’s a tremendous commitment -- one that carries even more weight once you’ve enrolled hundreds of paying members.
As such, it’s critical that you start it with the right intentions and understand what’s involved before putting the pedal to the metal.
Here’s a look at 5 questions you may want to consider before taking the plunge into a membership business model…
Do You Have a Skill or Area of Knowledge That People Are Willing to Pay to Learn?
Before considering a membership site, it’s important to determine whether you have something people are willing to pay to access. There are a lot of ways to validate an idea, yet the premise remains consistent: You need to follow demand.
For all the bells and whistles membership sites may have, it all comes down to two things: The transfer of knowledge and level of support provided.
If you don’t have the knowledge or skills that you can transfer through coaching, teaching, and content, a membership business model may not be right for you.
2. Do You Enjoy Nurturing a Community?
Unlike most business models, a membership business relies heavily on building relationships -- often between you and clients, and almost always between clients themselves.
This isn’t to say that you have to be an extrovert to be successful with a membership site; however, you must have a genuine interest in fostering connections -- or be willing to hire someone who is.
In a traditional business, your role as the owner is to sell a commodity, a product. While it isn’t always one-and-done, your time and money generally goes more toward acquiring new customers than nurturing the ones you already have.
In a membership business, this is flip flopped. It’s far less expensive to retain clients than it is to get new ones in the door. And since your income is directly tied in with how long members stick around, it would behoove you to do all you can to inspire them to stay month after month.
3. Are You Interested in Providing True Value?
Let’s be honest: There are a lot of businesses out there that are set up exclusively for one purpose -- money. And while I’m just as eager for a paycheck as the next gal, my membership business feeds something more than my bank account.
Without trying to sound trite, it feeds my desire to help people. It brings me joy to be part of people’s transformation. In that regard, I think that’s true of every successful membership business.
Selling courses is about giving information. Selling membership subscriptions is about giving transformations. I prefer the latter.
For better or worse, this business model doesn’t allow you to ‘fake-it-till-you-make-it.” People will hit the cancel button quicker than you can say, “Wait!” if they join and find it lacking. So, be prepared to deliver on your promises or anticipate an empty platform before long.
4. Are You Willing to Put In Some Sweat Equity?
If you want a plug ‘n play operation, or if heaven forbid, you’re looking for a get-rich-quick scheme, I politely suggest you look elsewhere. This business model takes some serious legwork.
That said, about 85% of that work is done before you even launch.
It takes time to set up the content, processes, systems, and strategies. Once those are up, however, having a membership is one of the least time-consuming business models I’ve known.
The coaches and mental health professionals who sign on as my clients often fall into one of two categories: They’re either expecting to have an easy ride into 6 or 7-figures and do very little actual work… or they have mentally prepared to put in some effort and do so with determination. Not surprisingly, it’s the latter group who sails into $10k+ months quickly.
5. Do You Want to Better Leverage Your Time?
Throwing this one in here may seem counterintuitive. After all, who doesn’t want to work fewer hours and get paid more, right? Yet the majority of service providers struggle to see how to make it happen.
Whatever your career may entail, if you’re charging by the hour for the work you do, and you get paid once for those hours, the hours you sell belong to your clients. That means you’re trading time for money.
If you’d prefer to better leverage your time, however, and get paid over and over for the same work completed, a membership business model may be perfect for you.
In a membership business, each piece of content created -- whether that be a video, a worksheet, a template, an audio recording, or something else -- adds value to your overall product. You’re not only getting paid once for producing it; you’re getting paid every time a member joins your program.
In short, you’re turning a static product into a recurring source of revenue. Put otherwise, you’re leveraging your time for maximum benefit.
How to Turn Your Idea Into a Membership Business Model
If you’ve answered all these questions with a resounding yes, congratulations! You may be ready to take the next steps.
You are invited to lean into the expertise and tons of support available to you through Membership Fix.
It exists to help people like you turn their passion into profit -- without incurring all of the time-wasting, vampire-like energy drain typically associated with shifting business models.
Hope to see you on the calendar soon!
