Find Your Perfect Membership Site Model with These 6 Recurring Revenue Case Studies...
Study what works and design your course or membership site the right way.
Membership sites are a recurring revenue miracle. Set it up, and watch as it starts raking in piles of money…
While you're lounging on a warm beach halfway across the globe.
Sound too good to be true?
Maybe it is, because most membership sites are not an overnight success.
But recurring membership businesses can be very profitable, whether you're offering software, personal coaching, or online courses.
If you stick with it, your membership will eventually become a wildly profitable reucrring revenue machine for your business.
But there's a lot that happens behind the scenes to prep for – and sustain – that level of success.
How would you like to see your course launch revenues increasing, year over year and impacting thousands (and even millions) of people around the world?
It’s all possible when you learn how to market an online course, using smart publicity strategies – and Selena Soo is here to share how.
In this case study, I’m interviewing Selena Soo, founder of S2 Groupe, and asking her to share what she’s learned about building credibility and selling online courses that has enabled her to build a million dollar business, and be the go-to expert in her field. (Plus help thousands of her students do the same!)
38% of website visitors will simply stop using a website if it's unattractive or difficult to navigate (source).
That's a chilling statistic for your membership site.
Although there are many WordPress themes filled with attractive, pre-designed layouts, these are designed with blogs and business sites in mind… not membership sites.
The average membership site subscriber cancels after 4-6 months.
How much revenue is that for your membership site?
Let's do some math:
If you're at the low-end pricing point (about $37/month), each customer is worth a maximum of $222. That's IF they stick around for a full 6 months.
If you're at a higher pricing point (like $97/month), the lifetime value of a single subscriber is a little over double that amount: $582 for a 6-month subscription.
Behind that dollar amount are all the costs of acquiring that customer: Facebook ads, marketing funnels, etc.
After subtracting those costs, how much profit are you actually left with?
Perhaps it IS unrealistic to hope that your clients will stick around as paying members “forever”… but what if you could double or triple their current stick rate?
How much more actual profit would that give your business?
You do the math.
Unfortunately, the first impulse towards boosting membership site customer retention rates is this:
Creating more content, more “stuff”, to try to get them to stick around longer.
Does it work?
But you're shifting your focus away from the customer and onto the “stuff”. A recipe for disaster.
So here's a better idea:
Put your focus back on the customer. Instead of trying to distract them with “more”, get smart about delivering the content you already have.
To do this, refocus on your membership site stats. Those are the numbers that are going to tell you the real story behind your cancellations. Then, wherever applicable, start improving the flow for your members. This might take a few different twists and turns, but for now, focus on pairing your stats with these gamification best practices.
If there’s one thing that smart business owners do to sabotage their success, it’s this:
they keep reinventing the wheel.
You launch a course, you put in so much blood, sweat, and tears… You get customers for it, you get feedback… And then you move on and create a whole second course!
(Or more likely, get stuck creating it and possibly run out of money.)
I know because I’ve been that business owner, and in the past I’ve tried to keep feeding my creative beast by creating new courses and programs… instead of taking a more profitable route: selling courses to companies instead of individuals.
It sounds counterintuitive, but spending less time creating content can earn you more money.
If you've been in business for awhile or are considering starting a new business… you might have heard about the “holy grail” of business models.
That's why today we're sharing 7 of our favorite recurring revenue business ideas, to get you going.
Any time you create income that is predictable and reliable month-over-month, it is recurring revenue. If you're not convinced this might be a good idea, grab a copy of the book “The Automatic Customer” by John Warrillow. It's an eye opener!
Many business ideas require hard work and persistence, but pay off in the long run because the revenue stream is consistent, which brings your business the cash flow necessary to grow.
This post was originally written by Luke Guy. It’s been refreshed and updated to include new information for email deliverability in 2018.
Looking for return on investment? Email marketing offers the best ROI with 4.24% of people buying from email, compared to 2.49% from search engines, and 0.59% from social media according to Monetate and ExactTarget.
Face it: good emails sell.
So getting your emails opened and read can make the difference between a good launch and a disappointing one. (Not to mention the effects on cashflow!)
But what happens when your ability to deliver your marketing messages depends on your email marketing platform and other technical issues?