As business owners and entrepreneurs, we are always looking for new revenue streams to support our businesses – if not, then we should be!
Even the mega-successful entrepreneurs, like Richard Branson, have multiple revenue streams – just in case …
… one revenue stream dries up due to unforeseen circumstances – need I mention the current havoc around the world caused by the COVID-19 pandemic?
Multiple revenue streams not only make sense but are essential, right?
So let’s explore how a membership program can make an excellent revenue stream especially in challenging times!
Megan is a copywriter and speaker. Writing is her passion and she is very good at it too. She also loves teaching her copywriting methodology to her clients via workshops.
Her business started as a side-hustle but very quickly enabled her to leave her 9-5 job when she found she had a gift for writing sales copy, and persuasive articles for small business owners and entrepreneurs. She also found she has a gift for teaching.
Loss of Two Revenue Streams
Fast forward a year, and Megan is faced with losing two revenue streams because it’s not feasible to run her workshops given the current pandemic and all her speaking engagements have been postponed or cancelled.
So Megan has decided to run her workshops online since many of her clients still want her training but can’t attend a face-to-face training session. Megan also has some ideas about other offerings which she can include each month to help her clients evolve into better copywriters.
This sounds like a good fit for a membership…
The first thing that Megan needs to do is work with a membership consultant (like me 🙂 ), to map out what she wants her membership program to look like — because it is important to set up the membership program so that it fits Megan’s lifestyle. The last thing she wants to do is enslave herself to her membership program and burn herself out.
Knowing how and when she will deliver the core content and the monthly deliverables is important to ensure that she keeps her members interested and progressing without burning herself out.
The advantage of working with a membership consultant is that while Megan tackles these tasks, we can go to work on building the tech side of her membership. This leaves Megan free to work in her Zone of Genius and build her program without trying to figure out the tech. Like most people, tech is not Megan’s strength!
Following these steps, the next all-important step for Megan is planning the launch of her membership.
Many people believe that once the platform is built and the content uploaded all they have to do is open the shopping cart and they are making money. Oh, I wish it was that simple! And having made every mistake there is when it comes to launching a membership, I know firsthand that without a proper launch strategy, you will likely hear crickets from your audience.
The essential Four Membership Success Plans
There are four plans that are essential to the success of Megan’s membership:
- Content Structure and Delivery Plan
- Launch Plan
- Member Retention Plan
- Member Growth Plan
Each of these plans will vary slightly from business to business because each business is unique to its market, but without each of these plans being specially designed for her unique business, Megan will struggle to get her membership program off the ground.
Let’s Talk Numbers
Let’s say Megan has a combined following and email list of about 1000 (I will use round numbers to make the math easier).
Megan intends to start her membership subscription at $49 per month, with some extra incentives for early adopters. Normally, her face-to-face workshops sell for around $2,000, so the monthly subscription should be very attractive to her clients.
Conservatively, if 5% of her followers/list take up her offer, then she could easily cover the monthly membership expenses (apps, hosting etc) and this revenue stream could start making a profit before she knows it …
$49 x 50 = $2,450 per month
Over the coming months, if Megan follows her Member Retention and Member Growth Plans and strategically promotes her membership program, she could grow her members from 50 to 100 or more! That’s …
$49 x 100 = $4,900 per month or
$49 x 150 = $7,350 per month or
$49 x 200 = $9,800 per month …
You get my point …
Of course every business and market is subtly different, and nothing is ever guaranteed, but these figures are conservative and can increase exponentially if Megan also periodically increases the monthly subscription fee for new subscribers.
Megan has created not only an additional Revenue Stream but one that can grow into her own Revenue River, while working the hours she wants to work – thus giving Megan and her family more security and herself more time and financial freedom.
Do you have an idea for your own Revenue River? If so, what’s holding you back?
Let me help you get started – book a Free 30-Minute Membership Brainstorming Session!
Because I’d love to help you build your additional revenue stream in these uncertain times.