For those looking to create an online community, you must answer, “What is a membership community business?”
More and more entrepreneurs are starting membership communities this year to leverage their particular skills and experience. Given how profitable they can be and how simple it is to package up your skills to sell to the market in a subscription format, it’s really no wonder.
So, let’s break down exactly what a membership community business is and why you’d want to start one.
What Is A Membership Community Business?
A membership community business is a company that offers some product or service as a subscription and includes a way for customers to interact. They’re formed around a general interest or industry, with members paying a monthly fee to access features and content.
These membership community businesses usually exist as online communities where members can join the group from anywhere.
The variations of these communities are endless, meaning any niche sector can be monetized in this way. This is great news for people who have built considerable knowledge and skills in their careers already.
For a recurring fee, the member gets a product, service, ongoing advice, or curated content regularly.
An example would be Net Net Hunter, where you pay a monthly fee and get insights into particular stocks without the backbreaking research.
Membership comes in multiple levels, and each tier can offer new perks, such as discounts, access to VIP spaces, and so on, for higher membership fees.
Starting a group and turning it into a membership community business will take some time. Mainly, you’ll need to craft a membership website, create an offer, and then get that offer in front of prospects. From there, so long as you have an offer that converts, you’ll need to manage your members, their forum conversations, and material shared on your platform, and you must earn their trust, provide insights, and more.
So, is it worth the effort of building a membership community business?
What Are The Benefits Of A Membership Community Business?
The benefits of owning a membership community business include high profit margins, stable income, better work-life balance, and the opportunity to work from anywhere in the world.
Running a successful membership community business can pay off greatly if executed correctly, with estimates for net profit margins as high as 50% or higher. With such returns, it’s only made better with the fact that the income is a stable one.
Combining these mentioned benefits means you can look forward to an excellent work-life balance. Once the asset is established and running smoothly, most owners of successful membership community businesses estimate that it only demands 20 hours of work a week.
But be aware that this estimation of 20 hours of work a week depends heavily on the employees you hire to assist with your community.
One of the most significant benefits of running a membership community business is it can be done from wherever you’re based in the world, whenever you please.
So, can you make money from running a membership community business?
Can You Make Money With A Membership Community Business?
Yes, entrepreneurs can make money with membership community businesses. However, it takes work. Keeping your revenue stream flowing will mean ensuring the community remains active and healthy.
Members must always be happy with their purchase. So, it’s vital to maintain an educational and exciting community feed and continue to provide an excellent product. After all, if they lose interest, they will simply leave.
Also, acquiring enthusiastic new members is essential. These individuals will be incredibly active when logging onto the community, which will help drive engagement.
It’s important that your onboarding process can actively engage these individuals and educate them on which membership levels are available to them if they want to enhance their platform experience.
So, if you’re looking to create a new revenue stream, there’s no better method than establishing a membership community business.
We have a wealth of material about online communities if you’re looking for more tips.
Read next: What Are The Benefits of Community Membership?
