This one secret proves why membership sites have become so profitable. Once you understand exactly what it is, you’ll agree that you need to include it in your business. It’s so powerful it could even make or break your success. Learn what it is.
Renewal income. That’s the secret.
Here’s why renewals are so powerful:
1. It gives you a steady monthly income you can depend on in your business.
2. You won’t have to worry about your monthly cashflow or how you’re going to pay your fixed expenses.
3. It’s scalable and can grow as big as you want to.
4. Once your membership site is up and running and your renewal income is flowing, it can continue for months or even years on its own (even without your direct involvement).
5. Many people forget that they’ve signed up to a monthly renewal plan, the income continues until they cancel or their credit card bounces (whether or not they even use your site).
6. On yearly membership plans you can amortize and spread the income over the full year (check with your accountant first).
7. You can accurately forecast your future earning potential based on current member renewals and past cancellation and attrition rates.
8. You may be able to use your “future” income to get loans and additional funding upfront when needed.
9. It gives you a growing asset that has intrinsic value you can sell to an interested buyer.
10. It’s your own “annuity” you’ve created and will continue to pay “dividends”.
11. It’s passive income you can rely on just like rental property (and can be split up or developed further as your needs change).
12. It’s fun to see money flowing into your bank account each day with no active involvement by you to “make the sale”.
Shouldn’t you consider a membership site for your business? The benefits and opportunity are simply too great to ignore!