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,
Quick, what is it about a running a membership site that makes you NOT want to run one? If you’re like most marketers, the idea of being chained to your computer week after week delivering content is a major downside.
When you first got online, you probably had dreams of living the “Internet lifestyle.” You couldn’t wait to get away from the daily grind and job responsibilities. And yet if you run a membership site, it can feel like a job. You can’t see yourself running off to play on some exotic beach when you need to upload content at least once a week or more.
One alternative is to outsource this task. That is, you hire someone else to upload the content every week when you’re not available. But outsourcing comes with it’s own problems – namely, you need to 100% trust your freelancer to upload the content on time.
So if you haven’t yet developed a relationship with a freelancer, you probably won’t feel comfortable leaving your business (and your customers’ satisfaction) in a stranger’s hands.
Now before you toss aside the idea of ever having a vacation while running a membership site, let me give you two game-changing words: Autoresponder delivery.
You see, with a traditional membership site (like a PLR site), all members get the exact same content. So the person who just joined today is going to get the same content this month as the person who’s been a member for a year. Next month, everyone gets the same content again.
Obviously, this doesn’t make sense if you’re running a training site. That is, you want everyone to start with lesson #1 and get the lessons in order. So the person who joins today gets lesson #1. Meanwhile, the longtime member may be getting lesson #50.
The solution? A true “set it and forget it” model, which you can achieve by delivering all the content using an autoresponder.
Here’s how it works…
1. You create content for your entire course. So if you have a yearlong course with weekly lessons, you’d create 52 lessons. If you have a three month course with weekly lessons, you’d create 12 lessons.
2. Load your course into your autoresponder. Next, you need to get an autoresponder through a service like Aweber.com or GetResponse.com. Simply load up your messages into your autoresponder. Set the first lesson to go out immediately after the customer joins the course. Set each subsequent message to go out on a weekly basis.
3. Create a sales letter. Now create your sales letter and insert your order button (from a payment processor that accepts recurring billing, such as PayPal).
4. Drive traffic to your site. Here you can use all the usual methods of driving traffic, such as affiliate and joint venture partners, content marketing, pay per click marketing, social media marketing and similar.
5. Play golf (or whatever). Now the members roll in and your autoresponder takes care of the rest, leaving you free to do what you want!
Just imagine: You could set up multiple autoresponder-based, fixed-term membership sites. Just set one up, drive traffic and move on to setting up the next one. Rinse and repeat until you’re making as much money as you want!
In part 4 of the 5 part series on “How to Create a Membership Site to Generate Passive Income” we are going to focus in on creating real passive income by having Back End Offers.
Until the next one to your success,