Today, let’s talk about what I consider the ‘Holy Grail’ for any entrepreneur or business owner – Recurring income.
While there are several ways to earn recurring income online, today, we’re going to focus on my favorite – Video Training Membership Sites.
In no way is this the easiest method but with hard work, you can overcome the challenges and earn monthly income that has the potential to grow each month.
I and my partners have been working online for years and nothing gets me more annoyed than reading statements like, “Membership sites are terrific for earning money every month with almost no extra work.”
Let’s be honest, traditionally, membership sites are a lot of work!
A typical membership site will cost you thousands to get started, at least if you do it correctly.
Based on our experience, here’s an estimation of what it typically costs to get started with a quality membership site centered around video courses.
- Membership Site framework (Software) …… $500/yr – $1000/yr
- Site Customization, Theme, Logo, etc………… $1000 or dozens of hours of work
- Video Course Research & Production ………… $500/mo – $1500/mo (Depending on Length of Course)
While these are real-world numbers, don’t let these figures discourage you. I’m going to share a secret with you later on!
How Much Time And Work Is Involved In Setting Up A Membership Site?
The answer to this question depends on how much money you want to spend (or save). If you outsource much of the work, your costs increase exponentially but your workload goes down considerably.
Either way, the designer of your website will need to spend many days (sometimes weeks) making sure the site looks professional and welcoming to your visitors. The site and content should appeal to a large group of people. If at any time you do not think it is appealing enough for your targeted audience, you need to continue working on it until you perfect it. This is 2019 and people (including myself) are tired of seeing products, sites, and services released to the public before they are ready. Many potential visitors will simply move on and not return if you’re site doesn’t appear professional and welcoming. Remember, you want them to feel like they want to be ‘part’ of this website and no one wants to be part of something that is duct-taped together.
Even after you launch your site, there may be times when you need to make a few adjustments. We generally mail our client base and ask their honest opinions and what they would like to see. Allowing them feedback makes them feel their input matters and helps strengthen the bond between them and the new membership site they joined. Again, remember you always want them to feel like they are a part of this site. They are ‘Members’ after all and not just some random visitor passing through.
Again – Don’t let ANYONE tell you that creating and running a traditional membership site is simple (or inexpensive)!
Now that you have your video membership online, remember you will need to continuously update content each month to encourage visitors to remain members. Adding high-value content each month will truly require a bit of work but if you produce high-value content, you should have no trouble attracting members. If you’re outsourcing the work, this will mean you have a higher cost of running the site each month to produce content but if you play your cards right, hopefully, your monthly payments will start to help offset the monthly cost and eventually lead to a profit.
This sounds hard! Right?
Let me tell you something not many other people will tell you, “Running a membership site is generally hard work!”
Yes, it’s true you create the content once, and it can make you money month after month after month… BUT! (and this is a big but!)
First, content goes outdated at a moments notice these days.
Second, members will expect a continuous stream of content whether it’s weekly, bi-weekly, or monthly. Stick to a schedule.
Third, people expect videos these days. Over are the days of eBooks. No shortcuts – give them what they want!
Understanding the End Result
Membership sites, if done right, are truly a win/win solution for you and your members. You will offer the information, tips, and secrets you know which will help your members and in return receive recurring income from it, making your life that much easier. Starting a membership site is rarely an overnight win. As you can see above, there is a lot of work that needs to go into the design and production of the site and materials but if you go into it with the correct mindset, there’s no reason you can’t build a profitable business.