Welcome to the fourth installment of this series “How to Create a Membership Site to Generate Passive Income.” In part three of this series we talked about how to set the membership site on auto pilot, so you can live the “Internet Lifestyle” dream. Well, today, we are going to talk to you about one of the best ways to increase your profits from a membership. Few people do this but those that do are making it big time!
When you first thought about opening a membership site, you probably spent at least a little time crunching the numbers.Right?
Example: You did calculations like this: If you have 200 members each paying you $50 a month, that’s $10,000 per month. Or if you open multiple membership sites, charge $27, and get 500 members, that’s $13,500 per month. Or maybe your goal was 1000 members across one or more sites each paying $19 per month, which puts $19,000 in your pocket.
Chances are, however, you stopped calculating when you figured out that final front-end figure. But here’s the thing: That “final” figure only tells half the story. If you’re only taking into consideration your front end profits, you’re leaving a lot of money on the table.
You see, some of the easiest money you’ll ever make is by selling more products and even more expensive products to your existing customers on the backend.
Consider this: If you put up a good sales letter for your membership site, you may convert anywhere from 2% to 5% of your visitors. So if 100 people walk through your virtual door, two to five of them will become members.
Now let’s say you have 100 members paying you $20 per month (that’s $2000 per month). These 100 members are going to be open to your other offers, meaning you’ll likely convert in the double digits. So perhaps you offer these 1000 members a $50 ebook – you may find 20% (20 members) taking advantage of the offer, which puts an extra $1000 in your pocket.
With just one offer you boosted your income by 50%, simply by selling a product to your existing customers! Now imagine if you did this with 500 customers… 1000 customers… or more. You can see the possibilities!
Now in order to tap into these backend profits, you need to offer something that complements but does not compete with your membership site. One of the best ways to do this is to recommend related products from within each lesson. That is, you tell your members where to get more information on a topic that you’re not covering in depth.
Another way to make money on the backend is by recommending that your members buy a specific tool in order to complete a task.
There’s a fortune that lays hidden in the backend of your membership site.
You can tap into this fortune by regularly making related, complimentary offers to your existing members!
Stay tuned for the final segment of this series. If there is only one article to read it will be this one because knowing this will take you from playing small ball to playing in the big leagues!
To your success,