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Should You Focus on Reoccurring Revenue 1st?


Should you build a low ticket membership site (recurring revenue) right when you start up?

I mean it sounds sexy, right? 

So many of our students (before they leverage the 10 Step Visionary Planner System) think, "I'm going to put a membership site together because I got this audience and they want more from me so I can quickly just get a few people in there, paying me on a monthly basis."

 That’s not the right way to think about things (more on that in a sec…)

Before we roll ahead, let’s go over a couple different scenarios on when it might be the right decision for you to launch a membership site, and when it might be a little too early.



1. How big is your Audience?

First you have to ask yourself, do you have a large enough Audience that if you put out a low ticket recurring revenue membership site ($20-$200 a month), it's going to be worth your time and effort (because it's going to take time to build a membership site and it’s going to take time to market it every month).

If you don't have at least 5,000 and up on your list, the volume isn’t there for you to monetize any offer under $500.


2. Build the Audience or build a high ticket (signature) program

My wife Anna waited to create a membership site because she didn't have a ton of people on her marketing list.

She had a good amount of followers, but she hadn't really built up an authority with her followers yet onto why they would actually join a membership program with her.  

Instead, she created a Signature Program ($500-$2000) and process so people could understand the transformation that they would get inside her membership program.   Once they finish her Signature Program and that process, then they want to get masterful in what they learn from her. 

They want to have an ongoing ability to learn and grow. And so they immediately are a great fit for her monthly membership program (FYI, we coach our students how to build their own membership site after they complete a bunch of more critical steps first). 


3. Map out your Dream Income Blueprint

To make sure you have yourself a good business model,  I suggest you also map out your Dream Income: 

- How much do you need to get the lifestyle you’re after?

- How much will your charge course so you can hit that income goal? 

- What’s the conversion rate of subscribers on your list to buyers? (HINT: Usually, 2 to 5% of your following or your warm audience is ever going to buy from you)


4. Have lead generation systems in place

Lastly, if you didn't build a business to keep attracting more Audience members, people will drop off over time (usually a 20% a month attrition rate).

Your list size today (of active people who open and click your emails) is not what it will be a month from now.

Make sure you have lead generation systems that are always adding fresh leads, and that those fresh leads are always aware of your membership offer (we recommend you offer as a $1 trial, or upsell after they buy another offer from you because selling continuity it tricky!  Why?  Because people get nervous about forgetting to cancel or that it’ll be too hard to cancel.  So build trust THEN sell membership!)


Wrap Up

If you're like, "I struggle to build an Audience," then this recurring revenue model definitely has got to move down the field… 

Instead, learn to do more with less, which is really about adding High Ticket (high priced) Offers into your business model so that you can make more money out of the gate… 

Then  as you build an Audience tack your membership offer onto the backside.

It's all about knowing how to think about your business and your business plan, when to make the right moves at the right time versus the right moves at the wrong time.


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