Call it what you want – recurring revenue, membership sites, continuity – it’s something I love having in my business. It’s also something I feel is a necessary part of my overall income strategy. It gives me a little more comfort knowing that I do not start a zero each month.
As I’m preparing my PLR membership webinar notes (part of PLR Business Training Club), I can’t help but think about how there are both good and bad points about membership sites. Some people get caught up in the hype about having membership sites – that it’s easy, automated and passive income.
While there are great things about membership sites there are also some downfalls too.
Running a membership site is NOT easy! It’s typically NOT passive income (running on autopilot). It’s also not for the faint of heart…meaning you can’t take it personal when people cancel their membership. It’s going to happen!
Over the past 3 years, I have created 5 different types of membership sites. One of the most important steps in creating an membership site is to make sure you have chosen the right topic. I have found that member retention is directly based on what value you are providing to members. Do they need what you are offering? Do they want it? If you need or want something bad enough – you will get it. Period.
In one membership site model, I provided unique content each month for my members. It was very successful because those that signed up needed quality unique content on an on-going basis. They didn’t mind paying a lump sum each month because of the value they were getting!
So if you are thinking about setting up some type of recurring income in your business, which I think you should (it’s working smarter) then here are a few pros and cons. If you go in with eyes wide open you’ll have a better chance of success!
Ahh the pros! They get you all excited and make you feel all hopeful! :)They are usually the reason we do something, right?? Here are a few pros:
1.) Never start your month (or day) at zero again! I absolutely love this! What if something happens (because life DOES happen) and you are unable to work for a week or two (or longer)? Well if you have recurring income coming in then you’ll still be earning! That’s the power of membership sites!
For example, last August, I gave birth to our baby girl so that meant I was just a wee bit tied up lol. I was so happy I set up recurring income because I didn’t miss a beat as far as my income went!
2.) Providing something on a regular basis keeps you accountable! Sometimes we need routine or a deadline to keep ourselves motivated and/or pressured just enough to get things done. I know I do anyway!
3.) You have the ability to cross promote and make even more money. Your members are paying customers. If you treat them right you can recommend other products/services that will help them and earn more money on top of your member sales.
There are more pros, but you get the point!
On the other hand the cons of membership sites are not really talked about that much (hhmm I wonder why). Again when you know the drawbacks then you can make an educated decision on whether or not creating a membership is for you!
1.) Continuous promoting of the site in order to keep your membership full. If your numbers are low is it even worth the time, effort, money of running a member site?
2.) Commitment! This really shouldn’t be a con but for some it is! You have to commit to tedious updating and maintaining content EVEN when you don’t feel like it!
3.) Technical issues. Sometimes plugins or scripts can go haywire and you have to fix or get someone else to fix the problem. This could result in customer complains and even members dropping out.
4.) Another con (as stated above) is that people are going to drop out. It’s something I hate seeing but at the same time it’s just apart of this business model. You take the good with the bad…and you have to get thick skin!
Of course there are ways to get around some of these cons. If you can isolate your personal cons and find fixes for them like I did then you can make the right decision for yourself. For me the pros far outweigh the cons!