Looking for a business idea? There is a model you should explore: the membership sites.
We are currently experiencing a global crisis. From the impact generated by the pandemic, the constant rise in inflation around the world, the continuous announcements of large companies making massive cuts in employees and, on the other hand, small businesses that seek to continue subsisting in a difficult economy.
In these challenging times, we are all vulnerable to downsizing or even closing down our business. Therefore, it is very important that as an individual or business owner you are aware of all these scenarios and look for other sources of income.
What do I mean? To membership sites.
As technology evolves, Business models also change. Before, the most common format was the transaction format where you generated income through promotion and sales. The problem is that we are increasingly saturated with promotional impacts and that reduces the strength of the transaction model. Now the most evolved model is the subscription model. Here you generate recurring income month after month through promotion and subscription. You also earn through automatic subscription renewal.
What are the membership sites like?
Companies like Microsoft, Amazon, Walmart, Tesla, and many more have turned much of their business to subscription models.
A membership website or membership site / subscription business is a website that has content of interest or great value to users in exchange for a subscription that is paid at certain regular periods of time.
The most popular examples are Netflix, Spotify, HBO or Amazon Music. These are sites, platforms or applications that allow you to access exclusive content in exchange for a monthly or annual subscription.
However, membership sites are not limited to music or movies and series for streaming. For example, Amazon Prime recently launched in the United States a generic drug subscription called RxPass, a new service added to Prime membership that allows you to get unlimited prescription drugs for just $5 a month, delivered free to your door.
And what is Amazon doing with this? Yes, solve a need.
Now, would you think that a membership site can be applied to your business?
I think so. And as I mentioned before, not just a music, movie or now, drug business. In addition, it does not only happen in large companies, it also happens in small companies. There are subscriptions for endless products and services such as English classes, yoga, martial arts, razors, socks, wines, healthy food with home delivery, access to courses, coaching sessions, updates, etc.
You can practically apply this model to any business. I’ll give you my own example.
We have dedicated ourselves for more than 10 years to providing face-to-face training in Personal Finance, Investments, Business and Marketing. However, with the arrival of the pandemic, our main focus, the seminars, were affected by the Covid. So, we created a membership site offering the content of the seminars on a monthly or annual basis. So, those interested had access to the usual content, but online, in addition to having group sessions with me, similar to the seminar. Our Extreme Financial Freedom membership is for people who want to achieve Financial Freedom, they subscribe and we give them training and support throughout the process until that Financial Freedom becomes a reality, this can be monthly or annually.
How can you check if your business is applicable to a membership site?
If you cover a need and also, you can also sell your service and/or product online. As simple as that.
How can you start? Think about how you can offer your product / service, so that you can charge for a monthly or annual subscription.
Research a few platforms to help you build your membership site and compare them. For example, we use Kajabi.
Search if you have direct and indirect competition, this will not only help you to know if someone already has a similar membership site, but it will also help you to see the prices they offer and the way to carry out the business.
Don’t limit your ideas, we have alumni who have created sock membership sites, sex shopconfectionery, yoga and meditation, among others.
The possibilities are practically limitless, you can even look for inspiration on membership sites in the United States. I am sure that you will find many ideas and motivation to delve further into this business model.
Alejandro Llantada Toscano Specialist in persuasion, communication and marketing for companies and personalities. Graduated as LAE and Master in Marketing from Tec de Monterrey. He is a Master’s Professor at The College of Public Image and bestselling author of The Black Book of Persuasion, The Little Prince’s Strategy and Think Outside the Box.