Is this a good business model to follow?

12 replies
I recently came across a guy in the sports niche name Bruce Blitz. He has a huge youtube channel following as well. However in order to view the content on his website you must pay. From what I have heard is that his articles are very good. Not trying to sell anything here but click on the link below to see what I am talking about. http://blitzsportsnetwork.com
https://www.youtube.com/user/BruceBlitzed
#business #follow #good #model
  • Profile picture of the author Lance K
    Yes, membership sites are a good business model if done right.
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    • Profile picture of the author Chris Pambos
      Originally Posted by Lance K View Post

      Yes, membership sites are a good business model if done right.
      The best business model worth investing the required time, effort, and energy if you are serious about your Internet marketing career in my personal opinion.

      I do not think that I need to state the obvious benefits of 'passive' income.

      Creating a continuity program does require a lot of work, the main sticking point is being able to consistently publish new content until the end of time if you plan on running an endless subscription.

      However, the "Micro Continuity" concept, from memory, first coined by Russell Brunson is an excellent alternative, create a fixed-term continuity, do the work once and afterwards just focus on traffic and increasing membership base.

      Something for you to look into if you are interested in pursuing the Continuity business model deebee23.
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      • Profile picture of the author LuckyIMer
        Originally Posted by Chris Pambos View Post

        The best business model worth investing the required time, effort, and energy if you are serious about your Internet marketing career in my personal opinion.
        .
        I agree, membership is a great business model, best examples are seen on forums, where a forum offer you everything, but in return to have more access and benefits you need to upgrade membership.
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        • Profile picture of the author JohnMcCabe
          As others have said, you have to continually replace members as they leave, along with finding new members if you want to grow. Add the continual need to develop new content that meets or exceeds the standard set in the beginning, and it can be a tough way to make a living.

          Magazine subscriptions are one of the original info "memberships", so if you want to see first hand how important keeping members is as well as how difficult, buy a subscription and let it expire.
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          • Profile picture of the author Steve B
            Regardless of your niche or membership structure, it goes without saying that your content must be outstanding and the value of the membership easily evident. Even so, there is going to be churn in your subscribed members.

            Typical retention rates run about 3-4 months for an average membership site (this observation is not anything scientific - that's what I've seen and read from membership site owners as I watched over the years). So for a $20/month membership, the owner will maybe get $80 from the average subscriber.

            Is there a way to increase the membership income? Yes.

            Here's a hybrid membership model that you might want to think about (or your own variation of it). The advantage to potential members is that it has a flexible payment plan that let's the member choose his/her favored way to pay.

            1. Pay a monthly fee of $7 - price is locked in - stay as long as you want.
            For those who are against long-term commitments, this fee is easy and simple. Some will continue to pay for a long time even though they may not frequent the site often. Canceling is easy to put off until next month, or the next, or the next . . . $7 is admittedly low, but it attracts more potential members than a higher fee and it exposes them to your great content.
            2. Pay the monthly fee of $7 - but pay it all at once for the year and receive a discount = $75.
            For those who are more serious about staying and don't want to make monthly payments.
            3. Pay the monthly fee of $7 - but pay it all at once for two years, receive a discount, and there will never be another charge - "lifetime" membership is free going forward = $129.
            Obviously the best bargain. It encourages folks to make a nice payment right at the outset. For those who want to "try out" the site to see it's worth first - they can pay $7 for a monthly membership until they're comfortable and then do #2 or #3.
            Here's the rationale. So you want to focus on getting your customers to stay longer, if possible, by giving them incentives. This model uses both discounts but also the idea of eventual free membership as incentives.

            Important. In addition to great content, I would offer paid products in the niche on-site. Also sell these same products to the general public. Give all your subscribed members a 50% discount on your products - another incentive to stay a member. So even after members reach the "free" lifetime status - you still have a way to monetize their membership and keep them active at the site.

            Premium membership. I would also offer a premium level of membership designed for the 10-15% of your members that are "die-hards" or "fanatics" in the niche that can never get enough of what you offer. Of course, they receive access to more in-depth or personalized content and instruction - whatever that might be - at a higher price, say $29-49/month or even more.

            My whole point is get creative to meet the desires and demands of your membership, in terms of content, products, site features, membership fees, varying levels of benefits, etc.

            Good luck,

            Steve
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  • Profile picture of the author Alexa Smith
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    Originally Posted by deebee23 View Post

    Is this a good business model to follow?
    It can be a very good business model for businesses genuinely able to produce large enough quantities of such high quality content that significant numbers of people are willing to pay, and to continue paying regularly, in order to access it. It's certainly not an easy business model.

    .
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    • Profile picture of the author Nightengale
      If you want to do this, you're better off doing it as a "fixed-term" continuity membership. That is, the payments end after a certain period, usually after a certain amount of content is delivered.

      Continuity has a lot of "sparkle and shine" to it and many are attracted because of that magic "recurring income."

      The problem with continuity is that it's a sieve: your subscribers are continually leaking out and you must continually replace them. Testing will tell you how long a member stays before they quit. And they WILL quit.

      People have a hard time sticking with never-ending payments. But if they can see an end in sight, they'll often stick with you a bit longer than they might have if the payments were never-ending

      Worse, you must continually provide new content. All. The. Time. At first, it seems easy, but after a while, it can become a grind, especially because it must compete with the endless free content all over the Internet.

      Continuity programs are easy to start, but can be hard to untangle from. Even if it doesn't become worth it, you must still satisfy your paying customers.

      So the "info continuity" program doesn't really make much sense, really.

      Unless....

      You do fixed-term memberships where you offer a specific amount and type of content for a set number of payments.

      This allows you to "set it and forget it." Create it once and sell it over and over. No more continually adding content (which can become a struggle after a while). It also gives you more flexibility in changing focus and/or "quitting" to do something else if/when you'd like to.

      Hope that helps!

      Michelle
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  • Profile picture of the author seekdefo
    It takes time to set this up and everything. But I feel that a running a blog is a better and easier thing to do that going for membership sites, that will help you get a better feel of the market hands on
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  • Profile picture of the author extrememan
    Membership sites is a good business model. It requires work but can be very profitable.
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  • Profile picture of the author internetmarketer1
    Membership sites are great. You can receive a good monthly income from all the members, and payment for them doesn't have to be super high.

    HOWEVER

    You do need to be in the right niche, have great salescopy, and offer great value in your products. If you do not offer quality information that people are paying good money for monthly, you could be losing big customers.

    I have never ran a complete membership site at its complete fullest, but I do know you have to put in a lot of work in order to see big cash come from this market.
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  • Profile picture of the author deebee23
    Also how would I get traffic to sites such as this. Would I have to use paid traffic?
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