Updated: May 8
2020 is an amazing time to be an entrepreneur and an equally compelling time to start a membership business. In fact, there’s never been a better time to start a membership business. Here are some of the main reasons why right now is an excellent time to start a membership business and ways you can take advantage of the opportunity while it’s piping hot.
1. Technology is on your side - To build a profitable membership site you're going to need the right technology. Entrepreneurs today utilize a variety of technologies to grow and manage their membership-based businesses. At the front end of the funnel one is likely to need lead generation, nurturing, and billing systems to capture and convert leads. A membership site system will then serve as the foundation to facilitate member access to the content after purchase. Finally you may consider CRM, subscription management, ticketing systems, and more to support your members throughout the process. Despite all of the moving pieces, it’s never been easier or more affordable to get the technology you'll need (including integrations) to launch and run a successful membership business.
How to take advantage: Start simple by identifying the bare minimum tools you need to launch and test your membership business model. You don't need all of the bells and whistles to begin with. Keep costs low while you test and iterate to find the right mix for your business and customer base, then look to add supporting pieces at the appropriate
2. The rise of the subscription economy - You can thank the likes of Dollar Shave Club, Netflix and Amazon Prime for popularizing the subscription model and driving consumers to mass adopt the idea of making monthly payments for the products and services they use. In fact, subscription businesses have become so commonplace that consumers increasingly prefer the convenience, affordability, and ease of access that comes with subscription products and services over their traditional counterparts.
How to take advantage: Make a list of content and/or conveniences you could offer your customers via a membership that would help them save time, solve an adjacent problem, learn something new, or provide some other value. No matter what you sell, there is a way to position what you offer in a way your customers will be compelled to pay for it as a membership.
3. The ever-expanding global market - Twenty years ago, only large enterprises had the ability and resources to penetrate a global market. However, given the growth of the internet, social media, mobile, and other technologies, every entrepreneur and small business now has access to a global market with the click of a few buttons. With an intentional strategy and offer, there are very few places in the world that are inaccessible to your business. The world can literally be your oyster.
How to take advantage: Think bigger. Traditional limitations such as geography, communications technology, the cost of travel, and more are no longer at play. Your total addressable market is much bigger than what has ever before been possible. Don't allow yourself to put off launching a membership based on conventional models and old thinking.
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