I received some email and calls from my previous blog posting on Avoiding A Big Mistake typically made in evaluating membership site software — they all had to do with tips on how someone who already has an online business can tell if they should start their own membership site.
Great question, and although I do recommend most online businesses eventually add a continuity (recurring revenue) business model to their business, there are some important questions that should be asked before jumping into the deep-end without a life jacket.
1. If you already operate an offline or online business, do you see existing demand from your customers or subscribers for ongoing support, information, knowledge, or advice? In my case, we started InfoMarketersZone after a sharp rise in the number of email and phone call questions on various aspects of setting up your own online information product publishing business. In this case, I had to do something – I couldn’t deal with all of the individual questions and support required, so we truly believed the best (most affordable) model was to start a membership site – and it has overachieved so far.
2. Are you up for it, could you sit down this week and develop 4-6 weeks of content (videos, articles, tools, case studies, audios, etc…) for your market? Thisis a very important test. Do you know what you would develop? I see many people starting membership sites, jump of the gates with lots of content in the first few weeks and then it fizzles out because they either don’t know what to develop every few days or don’t have the focus or discipline to stick with it.
3. Know your value. What is the single biggest benefit my customers will get from your membership site? What will they get out of your site a) Immediately after joining, and b) 3-6 months out that they wouldn’t be able to do with competitors? Will your unique value be —
– timely, up to the minute information on your market that they can’t get elsewhere?
– practical experience, detailed examples of applying techniques others are marketing (ex through case studies or in-depth expert interviews)
– specific ‘insider” information (on an ongoing basis) that you are able to offer because of the action you are taking and feedback you are getting from your market?
Answer these questions honestly, they will help bring reality to your dreams about startingn your own online membership site. It comes down to understanding two main things:
1. Your main, ongoing source of value to your market
2. The committment you will be making to weekly updates in content
If you are comfortable with the answers to these 3 questions, then you are ready to try your first (or next) online membership site.
Jeff
