One of the main advantages of building a membership site is that it gives you the opportunity to create a passive income stream.
That’s because you sell your prospects once on joining your membership site, and then they keep paying a recurring monthly membership fees, which generates residual income for you.
There are three main types of membership sites you can create:
• Vault-style membership site. This is where your customers pay one time in order to receive instant access to a large number of resources all related to one topic.
Example: Let’s suppose you sell golfing materials. You may provide a wide variety of resources such as ebooks, reports, blog posts, audios, videos, software and similar resources. All of these resources would be focused on improving the member’s golf game.
You don’t have to provide extra content on an ongoing basis for this site, nor do you receive ongoing monthly membership fees. However, this site does give you an opportunity to build a customer list, so you can email these existing customers a variety of backend offers… thus diversifying your income.
• Traditional monthly membership site. This is where your customers pay an ongoing regular membership fee.
Usually members are rebilled monthly, but you may set up other payment options, such as weekly, yearly or anything in between,
In exchange for these regular membership fees, you provide your customers with new training materials or other resources each week or each month.
Example: In keeping with the golf example, you may provide your members with a new golf lesson every week, such as how to improve their swing or how to improve their plays on the green.
The disadvantages of this type of site are that many owners struggle with retention as well as creating new materials constantly.
• Fixed term membership (FTM) site. This style of site is like a traditional membership site, because you provide new materials to your members and they pay you ongoing membership fees. The difference, however, is that you’ve made it clear upfront that this arrangement only lasts for a fixed term, such as three months, six months, a year or more.
Example: Once again, let’s look at the golf example. Instead of sending your members new training material for an indefinite period of time, you instead fix the membership term to something like six months (24 weeks). You can then create 24 weekly lessons, such as “24 Golfing Secrets Every Golfer Ought to Know.”
The advantage is that you won’t struggle as much with member retention, because people who start a membership site and see a clear end date in the future are less likely to quit. They’ll just stick it out in order to get the full benefits of your training materials.
Another advantage is that you can create the content once and have it delivered by autoresponder, which makes the day-to-day maintenance largely hands-free for you.
You don’t necessarily need to restrict yourself to just one type of membership site.
Example: You may decide to diversify by offering a vault- style site at a good price to use as a lead generator. Then you can upsell your customers into a fixed-term membership site.
Hardly anyone gets rich off of just one product, unless you’re amazingly lucky. But even then, you’d be leaving money on the table if you sold just one product or one service to your customers. And you’d be shortchanging your customers, since they’d likely still have problems that need solving.
Having a membership site will allow you to retain those costumers and continuosly providing them help 🙂
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