Is the thought of creating a membership site exciting and super tempting, but you’re not sure it’s worth the time, money and/or energetic investment?
I feel you.
Membership sites (or memberships in general–sometimes they don’t require an actual website to function) have become increasingly more popular. And today they run the gamut from higher-end memberships packed with personalized support all the way down to the low-cost, high-value membership (which is 100% having a moment–you’ve inevitably seen the “$7/mo” membership ads on your Facebook feed!). But how do you know if a membership site is worth it for you this year?
Let’s explore the pros and cons to help you make an informed decision – taking all things “now” into account.
Here are the pros:
Monthly recurring revenue. A steady stream of subscription payments via Stripe probably sounds like a dream come true, right? More financial stability is no doubt the most obvious–and beneficial–pro of a monthly membership. Since a membership model is subscription-based, people will be paying you every single month–for whatever you decide to offer. In theory, this should provide you with more consistent monthly revenue.
When you know you have 50+ members paying you $47/mo, you can plan for having (at least) that much coming into your business – without having to load up on extra work (besides what you’re slated to create for your membership, of course–more on that in a sec!). And if you want the money piece to feel even more predictable? Create stipulations around your membership, like a 3-month minimum contract or annual-only memberships. (Month-to-month memberships are the norm, but remember, this is your membership; you make the rules. 😉 )
Income diversification. Multiple streams of income are the new black. (Just do a quick search for the term on TikTok!) A membership site (and that juicy subscription model) won’t just add stability to your monthly cashflow, it’ll also add diversity to your income streams. This means if a retainer client pulls out, a project you felt sure would pan out disappears or you’re in-between-launches of your online courses (and therefore, experiencing an income dip), you can stress less about your money.
Listen: Online business is a wild, unrelenting and ever-changing beast. Putting your metaphorical eggs in multiple baskets is a just a smart move, if you ask me!
Memberships provide a built-in opportunity for upsells, downsells and more. While not all memberships offer a community or live component, lots do. And TBH? It can be super beneficial for you as the biz owner, if it’s your vibe. When you provide a place to interact with you and/or your brand (whether that’s in a private Facebook group or a monthly Zoom Q&A), your members can get to know (and like, and trust) you quickly & easily. And you know who is much more likely to buy from you than a total stranger? Yup, people who’ve already bought from you. Viewing your membership (especially if it’s low-cost) as a “gateway” to other higher-end offers is a fantastic strategy.
Bottom line: Creating a membership site packed with peeps already into your message and content is the perfect breeding ground for future buyers–so why not bake one right into the membership you’re already maintaining?
That said, creating a membership isn’t all rainbows and dollar signs. There are several potential downsides, too.
Let’s take a look at the cons:
You need an audience. Bigger is almost always better, in this case–especially if you’re looking to make it your #1 income source.
In order to make a membership worth your while, you actually need people, well, inside it. The more eyeballs on your content (or email list), the better odds are that you’ll be able to sign new members up with relative ease. That said, you don’t need millions of followers to make great money with a membership, which is definitely another pro.
It (can be) time-consuming to set up. Let’s be real: Establishing and maintaining a membership site can require a lot of upfront prep–from marketing to content creation to #allthetechystuff. That said, you’ll need to be mentally (and fiscally) prepared for an initial investment. The good news? You get to decide exactly how much (or little) you want to include in your membership.
You can choose to make it super tech-heavy with a decked-out membership site and lots of personalized, face time with you, or you can keep it streamlined with a simple monthly PDF or pre-recorded video lesson delivered via email (and the email service provider you’re already using). It’s up to you. Just be upfront about what members can expect.
(And honestly, I’m loving low-cost memberships right now and it seems like the rest of the Internet is, too. It’s a win-win, really: with a low-cost membership, the price stays accessible for everyone in your audience, and you don’t burn out trying to churn out crazy amounts of content every month.)
Members expect regular updates and fresh content. Like I mentioned, it’s up to you how much you pour into your membership. But one thing’s for sure: Members do expect something new from you, usually monthly. And the more valuable the content is? The more likely they are to stick around for the long haul. But let me be clear: Valuable does not have to mean crazy-complicated–or requiring lots of your personal time. If “showing up” on camera live to chat with members isn’t your vibe, just don’t include it as a feature. Easy, peasy!
Attracting new members can be a challenge. Unfortunately, new members won’t just fall out of the sky. You’ll still have to market your membership regularly, in whatever ways work for you, to keep a steady stream of soulmate members pouring in. That said, the ways you decide to market your membership is up to you. No matter whether you rock out with paid ads or pour time into generating organic traffic, you’ll just need to be realistic about how much time & energy it could take to market your membership to reach your revenue goals.
And if you’re not willing to put the time in to continuously market your membership, your energy & efforts might be better suited to creating a one-time payment course or product. (Although don’t get me wrong: You absolutely can take time off from marketing your membership and/or only open it for enrollment during specific timeframes, too.)
You need to stand out to sell. Since more and more memberships are popping up, you really do need a rock-solid brand if you want to slice through all the noise online. What makes your membership–and you as a membership ‘hostess’–different? If you can’t answer that question, it might be time to do a deep dive back into your brand values and USP.
There’s “techy” stuff involved. Managing the technical aspects of a membership site, like payment processing and user access, doesn’t come naturally to everyone–which might mean you have to outsource it or up your VA’s allotted hours to take care of it. This can get pricy and cut into your profits if you’re not mindful.
At the end of the day, it’s important to look at your current time, money and energy before deciding to sell a membership. The good news?
If “creating a membership” is on your To Do List right now…
I’ve created an easy-to-use template package that will help you quickly & easily put together high-value, low-cost membership–from sizzling social media launch posts to click-worthy promo emails.
If you want to help your clients achieve radical results but without needing to craft copious amounts of content every month, this is for you. Click here to check out the done-for-you membership templates.
