Don’t look now, but membership sites are hot, hot, hot! Especially for businesses selling digital products.
Even if you’ve yet to build out your membership site, there’s a good chance you belong to at least one. This allows you to learn, connect with like-minded professionals, and gain access to otherwise hidden resources.
Instead of letting other digital entrepreneurs reap all the rewards, it’s time for you to step in with a membership site of your own.
Here are five of the top benefits of building a membership site.
1. Recurring revenue
It’s not the first benefit of building a membership site, but recurring revenue is easily one of the top benefits.
Depending on the current stage of your business, you may already have everything (or almost everything) you need to launch a membership site.
For example, if you’re an entrepreneur selling courses and other digital products via your website, a membership service can turn into a recurring revenue stream.
The key to success is knowing how to price your membership site.
Set your price too high and you’ll scare away potential members. But price it too low, and you could miss out on hundreds (or even thousands) of dollars a month.
Compare your idea and approach to other membership sites in your niche. The knowledge you gather will provide a better idea of how to set your price.
There’s no better feeling than a recurring revenue stream. When you achieve this with a membership site, it opens a world of opportunities to you and your growing business.
It’s truly one of the top benefits of building a membership site.
2. Improve customer loyalty
As an entrepreneur, customer loyalty should be high on your priority list. You want your customers to fall in love with you, your brand, and the products and/or services you offer.
But that doesn’t happen overnight. Loyalty and trust are built over time. And they never come easy.
You must earn customer loyalty.
One of the benefits of building a membership site is that it gives your audience a place to gather. You give them access to you, your brand, and all the knowledge you have to share. And that’s the foundation for a loyal customer.
The more “touchpoints” you have with your audience, the easier it becomes to establish loyal brand followers. With a membership site, there’s no shortage of options for communicating with your audience.
Think about it like this: Someone who is willing to pay for access to your membership site is already loyal to you. Now, all you have to do is live up to your end of the bargain.
3. An audience to sell to in the future
Don’t build a membership site with the idea that you’ll upsell your members in the future (more on this below). Upselling and promoting other products aren’t the benefits of building a membership site that you’re looking for.
Instead, start with a strategy based on providing top-tier value in exchange for a membership fee. Without this, you’ll soon find that your churn rate is higher than the industry average.
Once you establish your site, you can slowly begin to market and sell yourself and your brand to your members.
Here’s an example.
You’re an SEO consultant with a large following on social media. You decide to create a membership site as a way of earning recurring revenue and taking your personal brand to the next level.
In addition to membership fees, you can upsell things such as:
- SEO consulting
- Webinars and online courses
- Personal coaching
- Related services, such as content writing.
You get the point. The real benefit of building a membership site is that it gives you an audience to sell to in the future.
Best of all, it’s an audience of loyal followers who already trust you.
The opportunity is there. Just make sure you don’t lose sight of the need to provide value to your members.
4. Build industry authority
Personal branding and industry authority are more important than ever before. You want to be considered a leader in your space.
When you run a successful membership site, you show the world that you have something unique and powerful to offer your industry. Even if a prospect decides not to sign up, they’ll look at your site and realize that other people are paying to learn from you.
As your industry authority grows, so will your reach and credibility. With that comes more members to your site and more money in your pocket.
5. An opportunity to help your audience
Let’s put revenue, sales, and industry authority to the side for a minute. All these things are important. But the real reason to build a membership site is this: to help your audience.
The most successful membership sites aren’t built on the premise of making money. They’re built on the idea of helping other people succeed. Their success is your success.
Sticking with the example from above, an SEO consultant has the potential to upsell members to establish another revenue stream. But before they do that, there must be a dedication to helping members reach their goals.
When you help your audience, they’ll help you. Provide them with value, answer their questions, and show them that you’re an authority in your space.
From there, you don’t have to do much (if any) upselling. The opportunities will come to you.
There’s no better feeling in business than helping someone else reach their goals. With a membership site, there’s no shortage of people you can help.
Honestly, most entrepreneurs don’t think of this as the number-one benefit of building a membership site. However, those that do are in a better position to succeed.
Using Kajabi to build your membership site
With so many benefits of building a membership site, now may be the right time to take action.
Should you decide to go down this path, choose a platform that provides you with everything you need to succeed.
For example, Kajabi was designed with you in mind. Kajabi makes it simple to create your membership site, provides analytics, the proper marketing features to reach your users and much, much more.