What purpose does your membership have for you and your business?
In all cases additional money is ONE factor, but it may not be the main one. Here are three main ways a membership can be used in your business:
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You’re listening to marketing chaos, episode number 112. Well, hello. Welcome back to this show. I it’s been a bit stressful this past week. I’ve gotta be honest. My daughter fell off the monkey bars. She’s six years old, dropped her off at, uh, at her school, but they’re on vacation for Easter. So it’s, uh, like a holiday care program. And, uh, but same school. She normally goes to same monkey bars. She’s always been on since, you know, the last three years dropped her off, drove home, walked upstairs, got a phone call to come back and get her. And, uh, yeah, she broke her arm. That’s the first broken bone we’ve had in the family. And, uh, not fun, not fun. It’s uh, seeing your child hurt and having to race to the hospital and get a bone reset and all of that. And yeah, it was, it was rough.
Um, she was very brave. She didn’t cry hardly at all. Main thing. She just didn’t want to be put to sleep, um, or put under, they didn’t fully put her to sleep, but they gave her a very strong drug to, uh, you know, kind of knock her out so they could it back in place. So she mainly didn’t wanna do that. And, uh, but you know, you don’t really wanna be alert and, uh, aware of those things when they’re cracking your bones back in place. So, uh, she has a very bright pink cast now and she’s very happy.
She didn’t like the, the original cast and all the attention she was getting when we, uh, we went into school and stuff, but now she’s got her pink cast and she just wants to show all her friends and she’s learning to do everything with one hand. And mom and dad are learning to, uh, deal with a child. I, it has only one hand and needs a lot of help doing a lot of things. Um, so it’s been busy and we are okay and she’s on the men. So all good here. And, uh, these things happen. Nobody tells you when you become a parent, like how many years it shaves off your life with all the worry and stress and like sitting bedside at a hospital and all of that stuff. But gosh, I guess it comes with the territory. Hey, so today we are gonna be talking about the three ways to use a membership inside your business.
And this comes from working with a lot of students inside our membership launch academy, who are frankly, um, I guess, confused or not fully aware of the different uses or purposes of a membership in your business. And so they’re kind of looking at the membership in the wrong way. And I think understanding the purpose that you want your membership to serve inside your business and what the different possibilities are, can really help clear a lot of this up from the beginning. So what happens when you don’t actually get the different ways that a membership can function or you are using your membership in the wrong way, is it just doesn’t work? And it may take you a while to realize that it’s not working, or you may see from the beginning that it’s not working depending on what your expectations are, but let’s have a look at what the different functions or purposes of your membership can be.
And I’ve, I’ve identified three main roles or uses of your membership in your business. In all cases, of course, additional money or recurring revenue is a factor, but it may not be the main factor. Here’s why. So let’s talk about number one, the purpose in number one is actually to attract and nurture new people into your business. And in this case, it may not be a big money spender. It may not be a money grab, like you’re not gonna make millions of dollars off your membership. However, it really serves as customer acquisition or lead gen inside your business. But you have to acknowledge that that’s what it is, and that’s what you’re using it for. And really play that up and not expect it to make or break the end of your, you know, your financial goals. And when you’re using it for that, it can work really well.
But obviously you have to have other offers inside your business that you’re leading these people towards. Otherwise you’re not making money. So you’re just breaking. Even you’re making a little bit of money and that can be really good in a sense, because you’re paying for your, but you have to look at it as that and not expect it to be the thing that’s going to make you money. So let me explain now, in this case, you’re, you’re gonna talk about your membership everywhere, because it’s the place that people can get into your world and really get to know you and your brand get to like you start to trust you. And so typically it doesn’t cost, you know, a ton of money. It could be very low dollar, like 10, $25 a month, or it could be up to maybe a hundred dollars a month, but even at a hundred dollars a month, you’re gonna need a significant number of customers for this to really make a difference in your business.
So you wanna have a look at where this sits and what other offers you have. So when people get into this membership and it’s a load dollar offer, it’s at the front end of your business. So let’s say you go on someone else’s podcast, or you’re posting on social media. You’re talking about it everywhere, and it’s really about volume. So you’re using it essentially as a way to grow your leads as a, a easy yes, for people to get into your world. It’s gonna be really attractive possibly because of the community aspect or the other sort of factors that a membership provides. But you’re not gonna have a ton of you time in there. Like you’re not gonna be doing a lot of real, uh, extensive, you know, one-on-one coaching or even group coaching. Maybe you go live inside the group, like, but really it’s sort of like a big party it’s depending on obviously the topic, it may not be a party, but it’s like a, a big audience community place for people to come and engage with you and your brand. So that’s number one is like, really it, the purpose is to bring people in who don’t know you build that. No, like, and trust factor. And it’s usually a lower priced membership.
Number two would be where it’s actually a value add. So it’s, it’s where you’re already doing something else in your business. Whether that be workshops sessions like one oh on one sessions, whether they be in person or online and people are asking you for more. So it’s like, they’ve done something with you. And then it ends. And they’re like, well, what, how can I continue working with you? So you know that this is a really good opportunity for you to add a membership at this level when people want more from you and you don’t have that in place. So for instance, they come to you and they do a weekend workshop. Maybe you’re helping them get out of debt, or maybe you’re helping them strengthen their, uh, marriage, or maybe you’re helping them learn some type of skill or, or how to use, uh, nutritional supplements or whatever that is.
And then it’s over, but they still have questions. Like they go off into their life. They live their life, things come up and they’re like, how can I continue getting support from you? And this happens a lot. So if you, obviously you can offer one on one sessions, but that would be towards the higher end of your offers. So maybe they either can’t afford a one on one, or it’s not something that you wanna provide. Like maybe you don’t really like doing one on one sessions, so where you wanna consider adding this is okay, people want more for me. What else can I offer them? And you have this be sort of In this case, it will typically be a higher price, like mid range or higher end coaching program or membership. And essentially this is a way to make more money per customer. So increase that lifetime customer value and really sh strengthen that relationship between you and them and your brand. And so when you look at acquiring customers, it’s like one thing is to acquire more customers. But the second thing is to have more money per customer and this,
And this is really a way, another way to your customer, another way to increase your revenue and increasing that lifetime customer value. So that each customer that comes to you, not all of them will join the membership, but a portion of them will. So that increases the amount that they’re worth essentially to you when they come to your business. So you know that you can sell them, not just the one off class or the one off session, but you also have this ongoing offer for them. And you can present that to them at the end of whatever. The other thing is. So at the end of the weekend, you can say, you know, Hey, after this, usually people go off and they, things come up, questions come up, they haven’t thought of during the weekend. And so in order to address that, we’ve created this membership so you can present it that way.
And typically it’s gonna be higher price than the first offer that we talked about because it’s people are already warmed up. They already know, like, and trust you. They just want more you. And also inside those memberships, they’re starting at a different level. They’re starting at a, um, at a higher level where they already have some understanding of what you’re doing with them. So you’re able to have a different conversation. Like it’s not all brand new beginner people, they’re at a different and starting point. And so you can go deeper with them. You can go further with them. You may spend more time with them. Like you could have more zooms, more lives. Um, they could go longer, you could go deeper, but basically you wanna acknowledge all of that in your pricing and price it accordingly. So it’s not gonna be, you know, just a throwaway price, like $25 a month.
It should be a bit more substantial at that point. The third way to use a membership in your business is really where it is the focus of your business. So it is the main offer, or the only offer that you have inside your entire is. And in this case, it stands alone. It’s, uh, it’s an entry point. It’s the exit point. It’s the only point. It’s really the focus of your business. And of course in that case, it’s gonna need to have a higher ticket and a higher value. So coaching programs, and these can range from, oh, you know, a thousand dollars to 10, a hundred, you know, multiple hundred thousand dollars. They can go really, really high. Um, but the basic idea here is you’re going to be providing high value. So this is something that usually you’ll have an application and a sales call for, because people need to be vetted.
Like you need to make sure that they qualify in whatever way, and you wanna make sure that they’re a good fit are gonna be investing a substantial chunk of money. So you wanna make sure that they’re a good fit for you and you’re a good fit for them. So it usually requires an application and a, and a sales call. And it’s just a totally different beast because it’s like your main gig. So you will still have free offers. And as far as webinars, or maybe challenges or video series, you, you may have a podcast or a video show or a radio show or something like that. So people obviously still need a chance to find out about you get to know you, uh, hear your voice, maybe see your face, like see test S case studies, all of that, of course, before they throw down the money to join your high ticket program.
But you’re not really warming them up with a low dollar offer. Like you’re not really having, um, necessarily some sort of cheap class or in level class or anything like that. It’s like, this is the one way for people to work for, with you. And I actually love that because most of the people I work with don’t value their time and their expertise enough, but when they do other people do as well. And so when you acknowledge that, like, actually I know a lot and I have a lot of value and this is what I’m charging and there’s not this sort of lesser way to work with me. It’s like, you know, you wanna work with me. This is what it costs. And a lot of, uh, the, the wellness experts I work with, you know, they’re highly educated, they’re highly trained and you wanna acknowledge that, like people can get really bad advice online, or they could come to you the expert and get that support that is gonna help them really achieve the transformation and the change they’re looking for in whatever area you are an expert in.
So for instance, I have a friend, she works with women on hormonal issues and nutrition and stuff. And it’s like, she sees them in person in her clinic. And she also has this, uh, coaching program and it’s online. So anyone can join from anywhere and they work one on one with her, but on, in an ongoing basis. And it has a community aspect as well, which I love with memberships so that these women can compare stories and notes. And this, this is what I tried, and this was working. This what’s not working all of that. So they have the community support, they have the expert support and guidance and it a higher price program. So these are the three ways that main ways that I see that you can use a membership in your business and you don’t wanna mix them up. For instance, you don’t wanna have a lower ticket membership.
And, and that’s the only thing that you offer and you expect that your business is gonna succeed and make you money in your are gonna be able to quit your day job or stop doing your in-person sessions or whatever. It’s like, that’s, it’s probably gonna be a while for you to get the audience online and the volume that would be required at that low price point. I don’t recommend you. You try that when you’re beginning, cuz it’s going, it’s gonna be you a while. Like you it’s just, yeah, you’re gonna get more traction if you have a higher priced offer in your offer suite. Right? So you don’t wanna treat a membership as a standalone membership and have it be $50 a month or something like that. It’s gonna take too long for you to really grow it. I mean, when we started our membership in, in my business, we offered our original members a really good deal.
I think it was gosh, like $37 a month or something. And I got a hundred members in right away, a hundred plus, something like that. And so you go, oh, 37, time’s a hundred, that’s an easy $3,700 a month. That’s great. And you go and you know, and, and it’s sort of like this uneducated optimism at the beginning, cuz you’re like, I got 3,700 with like hardly doing anything. So I’ll just open it again, get it like 200 the next time. And it doesn’t really work that way. I, for a lot of reasons. But uh, I think as you’re in business longer, you start to see like, oh, okay. So I also have all these expenses like, and then you, you know, you have staff and you have your overhead of like what it actually costs you to run your business and to a acquire new customers and like what is your time worth and all of that.
And suddenly you’re like, you know, three, 4,000 is not really cutting it. I need to bring in more. And so you go and you try and like double that, you know, and you don’t have the volume because all the people that you kind of like knew and were connected to already joined and it’s not as easy to grow, uh, as we think. And that’s exactly what happened. The second time we launched, I was like, let’s get two 50. And it was like, that did not happen. And I learned the hard way. So I’d like to share my failures and failed attempts and stuff so that you guys get the, not that it has to happen the same way for you, but you can kind of see and see your way around the obstacles that I didn’t see and look at that. Okay. So your first launch, you may scoop up all the people that have been waiting to work with you, but then what, and that’s great and that’s awesome.
And I love that because then you’re working with people and you’ve got some money to reinvest in your business, but you have to be looking forward at, okay, is my membership positioned correctly inside my business? Or am I treating it like a, you know, frontend me membership, but it really should be a backend. Like it should come after a workshop or course, and it should cost more or vice versa. It’s like, you know, you really want volume and have this be a place for people to really get to know your brand and it’s, and it’s better situated would be better suited as a frontend membership and have the purpose really be a way to attract new people and nurture them. And yeah, you’re gonna have to, to direct a lot of people, you know, to that, but it’s going to pay off because you have this other thing, maybe it’s a course or maybe it’s a one on one coaching program, but you have that upsell and that’s really where you make the money is on the back end. So something to think about three different ways to use your, your membership in your business. Think about how you want your business to work for how you want your membership to work for your business. And is it positioned accordingly and are you actually charging in the right ballpark for the way that you want your membership to function? I hope this was helpful. And thank you so much for coming and listening to me today. I’ll see you next time. Bye for now.