As you consider starting a membership, you'll need to decide which membership model you will choose. This is based on both the type and amount of content you will provide, as well as your preference and willingness to continuously generate new content.
Here are some of the possibilities:
In this model, members pay per month “forever”. This sounds terrific! Sell once and earn money every month until you sell your business for seven figures, right? Not so fast.
First, this model requires that you create new content every month “forever”. There are a number of possible components of a membership and some are not as hard to generate month after month than others. Still, it's a big and fairly permanent commitment, so be sure you're up for it before you choose this model. And if you do choose it, carefully decide on what you'll deliver each month so you know you'll be able to consistently produce it.
Second, the dirty little secret of ongoing memberships is that the average time a member pays until they leave the membership is 3 months. I've seen memberships designed and supported in a such a way that members stay engaged much longer. But you need to realize that if you have a goal of X members per month, you will not be able to rest on your laurels once you reach that level since you will have attrition and will always need to be attracting new members.
Pro: ongoing recurring income, although average length is 3 months
Con: must create new content every month “forever”
A fixed term membership lasts for 30 weeks or six months, or any set amount of time. They tend to be between 3 months and 12 months' duration and content is usually delivered weekly. The content in the membership, whatever it is or however it's delivered, is also fixed. The topic of a fixed term membership tends to be quite focused on a topic. Members can pay monthly or in one payment.
People start receiving the content from the beginning no matter when they join the membership. So at any given time, you will have members of a year-long program on week 1 and week 7 and week 35 and so on. A key aspect of most memberships of this type is that if a member cancels his membership and wants to restart it, he will start back at the beginning. This encourages members to just stick with it.
This model is attractive to both you as the creator as well as to your potential members. For your part, you know exactly how much content you'll need ahead of time. You can plan it out. Heck, you can even have it all created before even launching the membership! This might be good for you if you're worried about creating new content under time pressure.
On the other hand, you can create the first few bits of content, launch your membership to start bringing in money, and then create the reminder before they need to be distributed to members.
This membership model can be more attractive to potential members since the topic and breadth of the material is clear upfront, as is the total cost.
While you will not have an inning, “forever” stream of income from each member, you may find that members do stay longer since they've committed to a certain length of membership in the beginning. Of course, your content needs to be valuable enough that they do not walk away before the end.
And as long as your membership material is evergreen, you can continuously market your membership and be bringing on new members without needing to create any new content. That sounds pretty good!
So if you're considering a fixed term membership model, do try to pick a topic that will continue to be of interest and where the relevant material will not go out of date too quickly.
Pros: clear benefit, know investment, all content can be created ahead of time Con: must consistently attract new members, should receive a evergreen
There are more membership models to consider, but these are two of the most popular.