How to Start a 6-Figure Membership Site And Work Just 4 Hours Per Week

[Ron Douglas]

Since membership sites (continuity programs) seem to be a hot topic lately, I'd like to share with you the easiest possible way to have recurring income and a high retention rate with minimal effort.

I actually recently started a continuity program which requires less than 4 hours of work to manage per week and I'm already up to $6,500 per month from just this one site. By the end of next month with a little promotion, I should have it up to $8k to $9k per month easily.

It starts with how you perceive continuity programs. Most people think of them as just delivering information. Being that most information is free online, I can see why people struggle to retain their members longer than 3-4 months.

After launching 3 continuity sites, I've concluded that people HATE being billed monthly UNLESS they are actually USING the service or product to their benefit (or plan to in the future).

=== Sidenote ===
If you have a membership site that people sign up for and don't use, you're better off having a Lifetime membership option with no recurring fee. For example, if the average customer stays on for 3-4 months and pays you $30, you could have a lifetime option for $47, $67 or even $97. You'll be surprised at how many people choose this option because they see it as a bargain and don't want to be charged monthly. Plus, this will help your site be more active because you'll have more members.
=== End Sidenote ===

So Here's What I Did

1) I found a physical product that has a high perceived value and really helps people. I knew about it because I actually use it everyday. Health/Beauty products work great for this.

2) I negotiated a wholesale price with the manufacturer of that product

3) I created a site that claims to have the best price for that product with the product name in the url - BestPriceProduct.com for example. Instant USP.

4) One of the payment options is a discount price if you sign up for the "Monthly Autoship Program." I ship the product to them each month and bill them automatically as a "convenience." I could have done this as a forced continuity with a free trial, but I don't want to force people to do anything. They will stay on longer if they don't feel like they've been tricked.

Now each week all I do to manage this site is:

- check inventory and place new orders for the product
- have the manufacturer ship the product to my fulfillment service
- download the customer orders and send them to the fulfillment service to be shipped out
- answer customer service emails

That's it - less than 4 hours per week. Being that the customers use this product everyday to stay healthy/beautiful and believe that they are getting the best price, they stay on long term. This type of continituity program has a very high retention rate - close to 70%.

I hope this gives you some ideas and opens your eyes to what's possible. If so, please make use of the Thank You button :-).

[Kyle Tully]

Nice work Ron

There are so many ways to setup continuity income streams over and above what you see in the IM niche.

And that 4 hours work could easily be outsourced for less than $40.

So then the question becomes, how many of these sites can you setup and how quickly can you do it?

[lakshaybehl]

Great work Ron!

Not the thing is to get as many websites like this one set up and running and then outsource the entire process to people for less than 100 bucks per week per site. The thing is that you have the rightest mindset, and you can reach the 7or even 8 figure levels with it.

Onwards and Upwards
-Lakshay

[innocent07]

Ron nice post......

I see you changed the title of the post to :
"How to Start a 6-Figure Membership Site And Work Just 4 Hours Per Week"

This should get more views now

[Justin Michie]

Awesome post Ron - it seems many people are having a lot of success combining offline tactics with online marketing.

[Vince Runza Online]

Yep, this may not look "sexy", when it comes to making money online but it works. However, who are you trying to please: the crowd, by being a "guru"; or yourself, by being a 4 Hour Work Week winner?!

So, Ron, are you ready to outsource the 4 chores you listed, so that your only responsibility is to spend the money?

[Andyhenry]

Good post Ron,

I have several memberships that require me to do nothing but think about more ways to grow and monetise them - other people do ALL the work.

That's why memberships are so great - if you model it right you can just keep going and scale massively.

Andy

[R-Yeah]

Hi Ron,

That post was very inspiring!
I found quite good ideas for the local market here.

Thanks for sharing.

[marciayudkin]

Ron,

So do I understand correctly that this is a continuity program without any interaction among the members? Or is there also a forum and resources for members behind a password?

Just trying to have a clear understanding of your business model.

Thanks,

Marcia Yudkin
Marketing Mentor
www.marketingformore.com (a member site WITH lots of interaction)

[Ron Douglas]

Originally Posted by ste25

One part of the plan is missing - getting traffic. How do you get traffic?

There must be at least 25,000 posts on this forum about getting traffic. It's all the same - and it's no secret. The best way for you depends on the product you're selling.

1) You can create traffic:
- Send an email to your list
- SEO your site or blog for the keywords related to your product. Get quality backlinks, add relevant content.
- Encourage your visitors and customers to refer others

2) You can borrow traffic:
- Find high PR sites and write articles, post comments, participate on forums with links back to your site
- Find popular ezines and submit articles to them directly
- JV with other site owners
- Start an affiliate program and actively recruit affiliates

3) You can buy traffic:
- Buy ads online
- Buy ads offline - industry magazines, newspapers, etc
- PPC

I'm sure I missed some of the methods - you can see Justin Michie's sig for like 100 more ways.

[Ron Douglas]

Originally Posted by marciayudkin

Ron,

So do I understand correctly that this is a continuity program without any interaction among the members? Or is there also a forum and resources for members behind a password?

Just trying to have a clear understanding of your business model.

Thanks,

Marcia Yudkin
Marketing Mentor
Marketing for More Mentoring Program (a member site WITH lots of interaction)

It's a physical product with an Autoship Rebill Program. There is no forum or anything else.

[Sergiu FUNIERU]

Thank you so much for sharing this.

Originally Posted by Ron Douglas

2) I negotiated a wholesale price with the manufacturer of that product

I am very interested about how you did this step. Did you show some stats to him/her? How did you negotiate the discount? (5%, 10%) Did you ask for permission to buy a domain that uses the product's name?

I heard that you can't legally say "This is the most ..." because it will offend the other vendors, who sell the same product. Is this true?

Sergiu FUNIERU

[Ron Douglas]

Originally Posted by BlogBrowser

Do you actually provide a better price deal that other stores?

Yes. I don't have the overhead expenses that stores have.

[naruq]

Ron Great Post! Thank you for sharing your successful membership site strategies. I will definitely research membership sites.

[Ron Douglas]

Originally Posted by ForumJoiner

Thank you so much for sharing this.


I am very interested about how you did this step. Did you show some stats to him/her? How did you negotiate the discount? (5%, 10%) Did you ask for permission to buy a domain that uses the product's name?

I heard that you can't legally say "This is the most ..." because it will offend the other vendors, who sell the same product. Is this true?

Sergiu FUNIERU

Everything is negotiable and money talks. Don't be afraid to ask for what you want.

[Ron Douglas]

Originally Posted by mynameisneo

Very nice post Ron. I will also try this out and ask you for your advice if needed anywhere. I also want to ask that how do you get the traffic? This is the major concern.

Please see my previous answer in this thread.

[Frank Donovan]

Great post, Ron.

And to those asking about getting traffic, negotiating discounts etc, just use your initiative.

Ron's given you a clear outline of a workable business model - don't expect him to call round and do it all for you



Frank

[Bishop81]

What payment processor do you use for this?

[J Elizabeth Dize]

Wow, that is thinking outside the box Question though...you say they "believe" they are getting the best deal. Are they actually getting the best deal?

Not getting on you, just curious

[jimewing2121]

Ron,

Nice post, but I was wondering if you could post a link to your page. I just wanna see what you have done. I have an idea but I am not completely sure how to do it so I was thinking I could get some ideas from your site.

Also, I was wondering how long it took you to start make some money.

[Kim Standerline]

I was working my way down the page waiting for this question (or one very much the same)

Why on earth would he want to kill his cash cow by sharing his product with everyone. I'm suprised no one has asked who his wholesaler/dropshipper is yet!!

He gave you a workable model, I suggest if you can't use what he gave you and think up something for yourself, you maybe shouldn' bother

Kim

Originally Posted by jimewing2121

Ron,

Nice post, but I was wondering if you could post a link to your page. I just wanna see what you have done. I have an idea but I am not completely sure how to do it so I was thinking I could get some ideas from your site.

Also, I was wondering how long it took you to start make some money.

[Cash37]

Nice new approach to memberships

[Nato Guajardo]

Originally Posted by Kim Standerline

Why on earth would he want to kill his cash cow by sharing his product with everyone. I'm suprised no one has asked who his wholesaler/dropshipper is yet!!

So, who is your wholesaler? J/K. Nice spin to membership sites.

[affiliateppc]

Ron,

Great post. I know for a fact that this business model is solid because I have been involved in 2 projects in the past based on this model. Both where very succesfull.

To everyone asking about traffic.

In addition to what Ron mentioned, what I found best for this type of business model was Direct Mail. Offline Direct Mail that is. With everyone and their brother now pushing ads via PPC, there are less physical letters to compete with.

AffiliatePPC

[jam52633]

Wow Ron, good job!

Sounds like your on the right track

[Black Hat Cat]

Originally Posted by Ron Douglas

There must be at least 25,000 posts on this forum about getting traffic. It's all the same - and it's no secret. The best way for you depends on the product you're selling.

1) You can create traffic:
- Send an email to your list
- SEO your site or blog for the keywords related to your product. Get quality backlinks, add relevant content.
- Encourage your visitors and customers to refer others

2) You can borrow traffic:
- Find high PR sites and write articles, post comments, participate on forums with links back to your site
- Find popular ezines and submit articles to them directly
- JV with other site owners
- Start an affiliate program and actively recruit affiliates

3) You can buy traffic:
- Buy ads online
- Buy ads offline - industry magazines, newspapers, etc
- PPC

I'm sure I missed some of the methods - you can see Justin Michie's sig for like 100 more ways.

But which are YOU doing for this particular product, especially since you only work 4 hours per week in total on this site?

[Ron Douglas]

Originally Posted by blackhatcat

But which are YOU doing for this particular product, especially since you only work 4 hours per week in total on this site?

I started with my list, but my assistant has been executing the other traffic generation methods.

Finding a product that people actually buy and use is more important.

[Mike Montgomery]

[QUOTE=Ron Douglas;207483]
=== Sidenote ===
If you have a membership site that people sign up for and don't use, you're better off having a Lifetime membership option with no recurring fee. For example, if the average customer stays on for 3-4 months and pays you $30, you could have a lifetime option for $47, $67 or even $97. You'll be surprised at how many people choose this option because they see it as a bargain and don't want to be charged monthly. Plus, this will help your site be more active because you'll have more members.
=== End Sidenote ===

How can you do that if you're sending out a physical product every month?

[Muhammad Jalloh]

[quote=Mike X.;209318]

Originally Posted by Ron Douglas

=== Sidenote ===
If you have a membership site that people sign up for and don't use, you're better off having a Lifetime membership option with no recurring fee. For example, if the average customer stays on for 3-4 months and pays you $30, you could have a lifetime option for $47, $67 or even $97. You'll be surprised at how many people choose this option because they see it as a bargain and don't want to be charged monthly. Plus, this will help your site be more active because you'll have more members.
=== End Sidenote ===

How can you do that if you're sending out a physical product every month?

Mike,

I think the statement above was in reference to people selling downloadable information as content for their membership sites, not for people selling physical shippable products like the business model he is suggesting in this thread.

At least, that is the way I understand it.

~Muhammad

[Louis Raven]

Ron, I think you can cut out the middle man (fulfillment). Could you
order the item via the manufacturer website using your negotiated
discount but enter a different address?

Also, if they don't have a website then maybe you're the man to
build them one?

I'm sure you've thought of these things. Just trying to push you forward bro

[Ron Douglas]

Originally Posted by Louis Raven

Ron, I think you can cut out the middle man (fulfillment). Could you
order the item via the manufacturer website using your negotiated
discount but enter a different address?

Also, if they don't have a website then maybe you're the man to
build them one?

I'm sure you've thought of these things. Just trying to push you forward bro

Louis, I thought of this and asked them but they would actually charge me more per item (handling) than my fulfillment service. I'll let the people who specialize in shipping do the shipping. There are less headaches that way.

[Lashley]

Ron - great plan. Thanks for sharing it. Was there any problem or dilemma the company was facing that made them open to working with you? Some companies have problems with retailers if they undercut online. Others have freedom. Some companies face performance issues that make them open to just about anything. Did any of that work in your favor during the sales process?

[cadillac48]

A lot of people are reluctant to join membership sites. It is a grat thing for the owners, residual income. Too bad most people just wan t to pay once for something, they hate the idea of money going out of their banking account every month. I don't really get it. If you find a site with a monthly cost, you shouldn't care about the cost as long as you are making money from it. Besides, membership clubs have to post new, freash ideas or new additional material every month. That is what I look for.

[ebook]

any examples of possible products or products used?

[Jeannie Crabtree]

Ron, a question for you, if you wish to answer.

I have done something like this on a small scale, and looked into scaling it up.
I ran into a couple problems.

To make a good profit, it is suggested that supplements be sold for 3x, up to 10x times what you have to pay for them. I would say at least 2 1/2 times as you must cover the original freight.

I used to be a part owner and manager in a health food store. Most of the markup for the supplements are 25% to 40%. The store pays the freight to get it.

Are you saying you paid regular wholesale price and started up your fullfillment, or did you negotiate a better deal than most "resellers" would?

On one product, I was able to find the manufacturer, but they wanted such a lage initial order, I could not swing it. However, my markup would have doubled what I could make when I purchased at wholesale. However, the freight would have eaten into that. But if sent right to the fullfillment house that would have helped.

Jeannie

[Justin Mandel]

Brilliant Ron, so simple too!

Thanks for posting