Hello ,

Welcome to the third lesson in our series about creating recurring revenue...

Today..

We’re going to look at the next component of starting a recurring revenue program: Model Choice.

This is where you’re going to take a look at your business goals and your topic in order to decide the best model to fit your needs.

With that in mind, let’s take a look at five of the best and most popular models…

Model #1: The Drip-Feed (Ongoing) Membership Site

This is one of the most popular types of of program.

It works like this:

Your members pay a regular fee (usually monthly), and in exchange you deliver new content to them on a weekly or monthly basis.

Because this membership site goes on indefinitely, it works particularly well for two types of content:

1. Big, sprawling topics.

For example, a site teaching people how to make money online is such a big topic that you could produce new material every month for years.

2. PLR/resell rights sites.

Here’s where you produce products with resell rights or private label rights for your members to use and resell.

Basically that means you product content that your members can either resell or use as their own.

You can run this sort of site indefinitely.

…. Or any other site where you have the capacity to deliver fresh content each and every month.

One big advantage of this style of recurring revenue program is that you have a lot of backend sales opportunities (as long as the person remains a member).

In other words...

You get an opportunity to promote another related offer every time you deliver new content to your members.

However, the churn rate (the number of people dropping out) can be high with an ongoing membership site.

There are ways to reduce the churn rate, which we’ll talk about later in this course.

Another way to improve retention/reduce churn is to select a different membership model, especially the fixed-term model.

Which brings us to the next point…

Model #2: The Fixed-Term Recurring Revenue Program

The premise behind this model is that you deliver new content (and members pay their monthly fee) for a set amount of time, such as three months, six months, one year or more.

This works great for programs where you’re delivering a set amount of content, such as a training.

For example, you might set up a six-month training program that offers 24 lessons (one per week) on the topic of generating web traffic.

The advantage of doing a fixed-term program over an ongoing site is that the retention rate tends to be higher.

That’s because people see an end in sight, so they want to finish what they start.

(And that means more membership fee profits in your pocket, as well as opportunities to sell related offers on the backend.)

For example, if you set up a marketing site that goes on indefinitely, you’d probably have people dropping out after an average of three months.

If you set up a fixed-term program that goes for six months, you’d have more people sticking around and paying their membership fee for the full six months (which doubles your money in this example, not including backend opportunities).

And here’s one more advantage: you can run your entire program through your autoresponder.

Just upload your content to a hidden place on your website, and then use your autoresponder to deliver links to this content on a weekly basis.

Easy peasy.

It’s a true “set it and forget it” model.

Once you setup the series of content pieces, you have no more ongoing content creation commitments.

You can focus on member acquisition so new members are continually joining.

Next…

Model #3: The Physical Program

This is one of my favorites...

This is where you pretty much contract with your client to deliver them something each and every month.

The key here is to have something that is pretty much consumable on a month by month basis.

For me it's meat.

My clients subscribe for N2000, N5000, N10,000 and N20,000 naira worth of meat each month.

There's no way for you to just walk in and buy...the only way available is via subscription.

When I started it I was told it wouldn't work but I've found that people buy whatever makes life easier for them as long as you pitch it well.

So my meat business is doing pretty well at the moment thank you very much.

Model #4: The SaaS Membership

The software as a service (SaaS) model gives people ongoing access to software in exchange for a monthly fee.

An example of this is your autoresponder, or paid version of mail chimp where you pay a monthly fee in exchange for access to the platform that helps you manage your list, capture new leads, segment them, send them emails, etc.

This works well for any type of software that people are likely to use on a regular basis (especially weekly), as then they’ll remain members because they feel like they’re getting their money’s worth.

For example, you might sell access to a meal planning and exercise tracking platform.

You can even set it up so that if people stop paying the fee, they’ll not only lose access to the software, but also all the data the software collected (e.g., their past meals, fitness routines, goals, etc.).

In fact, a “tracking progress” platform in just about all markets (especially in conjunction with content) is a good option as it helps customers work towards an outcome and visualize their journey.

And finally…

Model #5: The Coaching/Community program

This is generally my favorite.

Here’s where you offer access to a community or you in exchange for a monthly fee.

You might set up a private forum or Facebook group where members can get support and ask questions from their peers as well as from you (via group coaching).

For example, you might sell access to a weight-loss support group for people who are trying to lose weight.

Another example is if you offer group-coaching to people who are setting up their own businesses.

The advantage of this sort of program is that people who drop out don’t just lose access to valuable information, they lose access to personal support and a community.

And that means you tend to have a higher retention rate.

You can also sell backend offers directly in the group (as well as via email).

Your Turn

Now it’s time for you to choose your model.

Think about your audience and the type of content you’d like to deliver to this audience.

Also consider your goals for the program (e.g., are you focusing on backend opportunities?).

Then ask yourself, which model is the best fit for your content, audience and goals?

Till tomorrow

Play a bigger game

CTM

PS:

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