Would you like to have more loyal customers and cashflow that you can depend on? Watch this 6-minute video and learn about recurring revenue and benefits of having a membership program.
One of the five areas of creating a sustainable business is having a recurring revenue stream. If you put together a membership for your company, even if your business isn’t normally one that has recurring revenue, you are solving this problem. After watching the video, leave a comment below about what you think about having a membership program in your company.
Today we’re going to be talking about memberships in your company and ways you can use him to create recurring revenue for your business. I’m not talking about being somebody joining your company. I’m talking about membership groups, which are your customers. So here’s a question for you:
Do you believe that recurring revenue is always just out of your reach? Do you know why recurring revenue is important?
Now, what if I told you that almost every business can have recurring revenue through what’s called a company membership site or a membership program. In this video, you’re gonna learn what memberships are and how I just might fix the lack of recurring revenue in your business, especially if you have a small business that doesn’t traditionally think about having a recurring revenue. So here’s a question I have for you: Does your business have excess capacity? Now, if you do, you have room for membership and your company.
Hi, I’m Josh Patrick. I’m the founder of Stage two planning, the author Sustainable business, and I’m the founder of the Sustainable business.
There are two things that you need to know about membership sites.
One, they create recurring revenue, which means that you’re going to have cashflow that you can depend on. Second, they make your customers more sticky, and what this means is that your customers will have more loyalty to your company and talk about you in a better manner to those that they know the reason why you’re having that become part of the family and when people become part of your tribe, the stickiness and the importance of them being part of your organization goes way up in their mind.
So we already talked about one of the reasons you want to have a membership in your company is for recurring revenue. So here’s what recurring revenue means. I have 500 people or 100 people or 50 people in my membership program and they pay me a certain amount of money per year. It might be a $100, it might be $500, it might be a thousand dollars. I know some memberships are as high as $20,000 and you take how many people you’ll have a you multiply at times that recurring revenue and that’s what you can expect on January first or 95 or 90 percent of that because you are going to lose people through your memberships.
Recurring revenue is really important and the reason that’s really important is that if you ever decide you want to sell your business and your business doesn’t have recurring revenue, buyers are much less interest in your business than it does.
So let’s talk about where you might want to use a membership. You know carwashes can use them. In fact, many car washes do have memberships, not especially well filled out, but they call them unlimited programs where you can get unlimited car washes done. Why? Because he had access capacity and by a soul find it by selling a seasons pass or a yearly pass or some sort of a pass. They get more business. Scariest are using season passes like crazy. Maybe scary is they’re covering their cost of operation before the. He opened the lifts for one time. Security companies can have memberships, they have burglar alarms, and they need monitoring those burglar alarms. They have maintenance that needs to be done on a regular basis. Those can be all packaged as memberships.
Anything that has a maintenance contract like car dealers are jewelers or audio stores, they can have memberships.
What I want you to think about is not just the maintenance contract, but what other services can you bundle along with them that would make people want to come into your company more often, do more business with you and pay you more money. So here’s what I want you to do. I want you to know what you can provide and here’s what you need to do to start with.
Brainstorm all the services you provide or could provide on a recurring basis for your customers.
Put together a test offering to see if there’s interest in your customer base. Now, if there’s not any interest in your customer base, you probably don’t have an offer that’s going to be interest them. If you find interest and you do have interests, put a plan together for rolling out your membership. First start with the customers you presently have and then start talking about that membership to the wider group of customers that you don’t have, you know, the truth is a membership where people who aren’t customers so you right now is something that will become very valuable and would actually help attract new people to do this.
Now, here’s the problem. I see what people will put together. Memberships is they try to get it to be 100 percent perfect before they roll it out.
In my world is 60 percent ready is ready enough because what 60 percent ready does it allows you to start testing and learning.
Remember, perfect is your enemy. You just want to have it be good enough. So I hope this little video about memberships has gotten you interested and wanting to know more. I’m happy to have a conversation with you about memberships and see if your company might be right from members. By the way, this is not something we sell. It’s a free conversation. It just might help you have a better business, one that’s more sustainable and economically satisfying for you. So there’s a button below this video says, “Have a conversation with Josh”. Just click it, sign up and we’ll talk for about 20 minutes. I’ll guarantee you’ll get at least one good idea that you can use in your business around memberships. So why don’t you scroll down, leave a comment below, and thanks a lot for stopping by. This is Josh Patrick, and I hope to see you back here really soon.