How to Start a Membership Program to Drive Passive Income for Your Business
So, you want to start a membership program for your business? In this article, I’m going to share EVERYTHING I know (well, almost) about launching a business using the membership model that’s becoming more and more popular for coaches and consultants looking to make a big impact without burning out.
Starting a Membership Program: Words of Caution
While I absolutely LOVE this business model for so many reasons, I also want to use this article to articulate just how much time, effort, and tech it takes to do it right. This detail isn’t to scare you away but to help arm you with the info you need if you decide if this model might be your next big move.
First, a word about “passive income.” No one will deny that passive income rocks. I mean, what’s not to love about making money while you sleep?! Here’s the catch: most women entrepreneurs underestimate the upfront time and cost to get a place of profitability, which then produces what some call “mailbox money.” It’s important to have the big picture and know that a membership is not a get-rich overnight scheme — it’s a long game.
I’ve launched a powerful membership program of my own and helped many Charleston entrepreneurs launch theirs, too. Here’s a birds-eye view of what goes into building a membership business.
The Perks of Membership Model: How can a Membership Improve your Business?
When I say “membership model,” I am referring to a subscription-based service in which customers pay a monthly or annual fee for access to different offerings, benefits, and special pricing. This is an EXCELLENT way to build up a brand presence and create a passive income stream - which can be pivotal for raising the evaluation and investment capabilities of your company. As a woman in business, this can be the game-changer that allows you to truly scale your offerings, allowing you to focus on your favorite parts of operating the business.
Some of the most valuable aspects of this model include:
Getting up close and personal with your audience - Membership programs allow you to collect data and detailed feedback from your clientele, giving more insight into who is your target market and how you can deliver the most value to them.
Driving up the Lifetime Value of each client - Establishing a monthly subscription service makes it MUCH easier to convert clients that would have been a one-time contributor, and makes them a repeat client organically. Women-owned businesses can acquire far more value from selling a repeating charge and spend less time on the front end making the sale.
Establishing a Powerful Brand - Membership programs enable you to build out your branding in more ways than one. You can build on the offerings and establish powerful elements that increase in value over time - like internal networks of women in business or a resource library of content that can help your clients achieve their goals fast.
Creates an Additional Channel for Advertising - By having a membership program, you can use this as a piece of your marketing funnel, selling relevant and valuable services and products to customers who are already familiar with your brand and excited to be a part of your community. This establishes a clear group of consumers that, when offered the right services, are ready to convert.
Piece of Mind from Passive Income - As a business owner, you are WELL AWARE that passive income can help set your company apart from the rest. Membership programs can assure a certain level of revenue for each month and promise untapped growth when executed well.
Exclusive Offerings that Drive Sales - This model provides a testing ground and launch pad for new products and services. Offering exclusive discounts and packages through a monthly subscription allows your members to feel like they are getting a *special* deal while you can strategically drive growth in targeted areas of your company.
The list goes ON and ON for why you need a membership program in your business. It is a valuable asset that can enhance your business's power and establish a strong brand identity with your target market. That said, membership programs require significant effort to establish and structure. They must offer true value to their members, or they can have a devastating impact on your company and brand. Let’s talk about the specifics of starting a female business membership program.
Key Factors of Starting a Membership for Your Business
Behind every great membership is many hours of planning, structuring, operating, and brainstorming - believe me when I say we know. On top of building out our own established membership program, we have done this for many others, a recent client including The Helm. As a woman-owned digital marketing agency in Charleston, we have outlined the way for many companies in the area, resulting in many happy clients. Check out our reviews!
Here are some of the key elements you MUST consider before launching your membership:
Messaging and Target Audience - This is single-handedly the MOST important area to explore before getting your hands dirty with this process. You must consider your market and how you can bring them value-additive services and offerings through this model. For us, WE Inc. is all about delivering marketing services to women business owners. Through our membership, we offer 1:1 coaching services, as well as monthly challenges & sprints to give our entrepreneurs new tools & techniques to implement in their business. This has been an empowering channel for women business owners in Charleston and nationwide.
Pricing strategy - Identify how you want to price and structure this stream of monetization. It is important to be mindful of your industry, check for market comparisons, and consider the value of the services offered in this subscription price. Don’t be afraid to get creative with your offerings!
Delivery Method - Decide how will you host this membership. There are a variety of options, from having it on your website to using different 3rd party services. Depending on what you are providing, there are perks and detractors to consider in every option.
Member Engagement and Retention - Develop strategies to keep your members engaged and subscribed over the long term. Ensure you have sufficient content and incentives to maintain their interest beyond the first few months. With the daily challenges, we keep our members engaged and focused on short and long-term achievements that drive traction across multiple platforms. This keeps our network focused and connected with the community built within our program.
Legal and Financial Aspects - Make sure your membership complies with all relevant laws and is structured ethically and fairly for all parties involved. It's important to work with legal and financial professionals to navigate the complexities and establish a rock-solid framework.
No one will ever tell you that establishing a membership program is a walk in the park - however, the payoff can be exponential.
Set up a Membership Program for Your Business: The EASY Way
To avoid any of the common pitfalls, annoyances, and setup errors - work with us. WE Inc. is the one-stop shop for women entrepreneurs to excel in their journey, maximizing their marketing budget to acquire the highest return. Melissa Barker - the brains and force behind WE Inc. is a master marketer, having worked with brands like The Coca-Cola Company, The Olympics, and the FIFA World Cup. Her expertise has helped hundreds of small business owners create websites they truly love.
Are you asking yourself, how do I expedite this process while maintaining best industry practices and a high-quality output? Check out our #VISIBLE Method - a 4-week program that gives you the steps, tools, and business coaching essentials to achieving rapid growth in your business. This fully customized plan is the key to hitting your goals and reaching your target market online ASAP with tasteful digital marketing. Don’t face the entrepreneurial journey alone - schedule a call with us and watch your business take off in more ways than one.
