What Would I Do: Optimizing a Membership-Model Business - Rick Mulready
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What Would I Do: Optimizing a Membership-Model Business

March 4, 2022

This is another quick tip episode here on the show. It’s another, “What would Rick do?” episode. What would I do in a certain situation?

In these episodes I take a specific situation, like a coaching call that I’ve recently done, and share what the person is trying to get out of the coaching call. What’s the big challenge they are facing?

I share what we did, and how we arrived at the takeaways and clarity for the Accelerator member I talked with on the coaching call.

In this particular episode, we were talking about how to get people to buy from the member. What to do when a prospect is apprehensive about signing up for a recurring membership.

In this episode, you’ll learn:

  • Why you need to segment your customers to get clarity in your sales funnel
  • Ways to repackage your content for customers that don’t want a membership
  • How to get the right offer in front of the right prospect
  • How to build relationships with a hesitant buyers

Links & Resources:

*Disclosure: I only recommend products I use and love and all opinions expressed here are my own. This post may contain affiliate links that at no additional cost to you, I may earn a small commission.

 

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Other Episodes You’ll Enjoy:

Two Reasons Your Business Isn’t Scaling

Coaching Call: Feeling Discouraged, Revenue “Security,” and Self Worth

How I Increased Revenue by 30% + Profit by 25% in 2021

 

Episode Transcript

[00:00:00] Rick:
Hey, my friend, before we get into today’s episode, I want to let you know about the game changing marketing tool that we started using in early 2021 for the backend of our business. We started using 10XPRO.io. I absolutely love it. It allows us to consolidate tools that we’re using for our online courses. Tools that we’re using for it to create order forms.

[00:00:56]
Tools that we’re using to create landing pages, et cetera, et cetera.

That all gets super complex and overwhelming really fast. Not to mention super expensive when you add up all those tools.

10XPRO.io solved all of that. It’s an all-in-one tool. They’ve been around for about 10 years now, and I absolutely love them.

[00:01:17]
It’s super simple. You can create your whole website in there if you want, not to mention landing pages, funnels, and pre-made marketing campaigns. Your online courses can be housed there. You can create offers. You can do your membership in there. Forums. They have a built-in affiliate center, and their online support is off the charts.

[00:01:37]
The link to check out 10XPRO.io is RickMulready.com/10XPRO. You can get super, super inexpensive trials, like a dollar, and check them out.

If you do decide to go with them, I do get a small commission. So, thank you in advance for that. RickMulready.com/10XPRO.

[00:01:58]
Alright, my friend, let’s dive into today’s episode.

[00:02:01]
Welcome back to the podcast. Thank you, as always, for tuning in today. This is another quick tip episode here on the show.

What I want to do today is another, “What would Rick do?” episode. What would I do in a certain situation?

What I like to do with these episodes is take a specific situation,

[00:02:23]
like a coaching call that I’ve recently done, and share what the person is trying to get out of the coaching call. What’s the big challenge, and share with you what we did, and how we got to the takeaways and creating clarity for our member.

In this particular episode, I want to talk about restructuring.

[00:02:45]
It’s not really restructuring a membership offer, per se, but how do we get more people to purchase from this person when they are a little bit apprehensive about signing up for a recurring membership?

Then we’re going to continue with our membership series here on the podcast.

[00:03:07]
So, this is, an Accelerator member. So Accelerator is our one-on-one. Group coaching and mastermind coaching experience for experienced and established online course creators, online coaches or teacher entrepreneurs. And by, by established, I mean, you’re already doing at least eight to 10 K per month, in revenue from your online business.

[00:03:31]
And you’re looking to scale, you’re looking to take things to the next level. But you’re not really sure what to do to get there. You’re not really sure what next steps to take. You’re likely feeling overwhelmed and thinking that the solution, all this is doing more when in fact it’s actually just the opposite.

[00:03:46]
We help you create, more profit, more impact with less hustle, and we help you do that by helping you optimize your sales and market. Optimizing your systems and processes and optimizing your mindset. And so it’s application only, it’s open enrollment. I’m getting that question a lot lately. So if you want to learn more and apply, fill out the application, go to Rick mulready.com forward slash Accelerator.

[00:04:15]
Okay. So our member here, they have a very successful. membership, but they also have a huge audience that wants information from this person and is willing to spend money, but they do have this fear around a reoccurring, membership model and not the model necessarily, but they, they have a fear around, like, I don’t think I’m going to use this membership every month.

[00:04:43]
And so they don’t want to spend the money. Now it’s a mindset thing, correct? Yes. But in this coaching call, our Accelerator member was looking to like, how do we get more out of our audience? How do we get more of them not get getting more out of them? How do we get more of them to take action?

[00:05:00]
Right? How do we get more of them to purchase something from us? And again, the reason. For that is, they have a ton of people coming into the business because our member here is, is one of the top experts in this niche. So a lot of word of mouth, their marketing is great advertising and so forth. So they have a lot of people coming in in the business, but again, they have like the people coming in, want information.

[00:05:27]
They are willing to pay for the information, but they have a little bit of a holdup on, you know, something that’s reoccurring. They don’t feel like they’re gonna use the membership every single month. So they hold off on doing it. So how do we serve those people? How do we, you know, get them to purchase something from us?

[00:05:47]
Okay. And so the promise of the membership by the way, is to help people get into a specific. type of school. Right. And so what we did, and this is going to be counterintuitive, by the way, I’m always talking about singularity of focus, right? Because when this person, joined us in Accelerator, it was all I said, that was one of the first things, let’s focus on the members.

[00:06:12]
Let’s focus on the membership cause they had a lot of different things going on. And so again, the membership is going really well, but it’s like, how can we serve more people who really do want our help, but don’t necessarily want to do a membership. And they said that they get a lot of feedback from people that said, if you had a course on whatever it is, For, if you had, you know, a workshop training or something that I can just do by myself, I would buy that.

[00:06:42]
So we looked at that and said, Hmm, okay. Let’s kind of break this down. What are the phases in the customer journey that this person serves? So we took sort of the overall members. And broke it down by percentage and came up with three different phases of the journey that this person serves the first phase, if you will, was about 60% of the people.

[00:07:06]
So by far the biggest phase, the second phase was about 30% of the people. And then the third phase was about 10%. So we kind of threw out that third phase. We kind of threw out that 10% and said, okay, let’s focus on the phase one. Of the customer journey and phase two of the customer journey. And because people are apprehensive about doing a reoccurring, you know, membership model for fear that they’re not going to use it all the time.

[00:07:38]
Okay. Let’s take existing material and create a course that solves the phase one problem. If you will, that helps them get from phase one to phase two. And again, we’re not creating anything new. We’re basically just packaging information. That’s entraining, that’s already created and making a course out of it.

[00:08:03]
Right. And so, and we want to price it higher than the lifetime customer value of the membership. And that’s really important. Right. So if somebody doesn’t want. To do a membership. They just want a DIY course. Well, here you go. Right. And so create a course. So this is one of the things, one of the pieces of clarity that came out, let’s create a course, again, just reuse existing material that’s already created.

[00:08:32]
Just package it differently. We’re going to leave it in the membership, but we’re also creating another offer over here that solves the challenge of people. I want information I’m willing to pay, but I don’t want to be paying something every single month. Right. And so let’s create an offer that solves that for the biggest phase of people in the customer journey, if you will.

[00:08:55]
So that was number one and really important that the pricing on this offer. Is higher than the lifetime customer value of the membership. So, because if people want to take the course, okay, cool. Go for it. Here it is. Or if they want to join the membership, that’s fine too. But here’s the course, end, because you can position it like, Hey, here’s the course, this is what you can pay.

[00:09:23]
Or you can jump into the membership. You’re going to get this material and all this amazing coaching and help and support and stuff along the way. The second thing was for phase number two, again, that 30% of the people basically,

[00:09:40]
Well, as we said, let’s do the exact same thing. Let’s create a super inexpensive. DIY for people that can go through it whenever they want by themselves take existing material and training. That’s already in the membership and create this offer. By the way, we’re not taking people out of the membership to do this.

[00:09:58]
It’s just for people coming in who are saying again, raising their hand, saying, I want information, their information hungry. I want to work with you in some way. I’m willing to pay. However, You know, this whole reoccurring fee every month, because I’m afraid I’m not going to be using it all the time is not something I want to get into.

[00:10:20]
Okay. Well, here you go. Here are some other options for you. So basically creating standalone courses to, in this case that are DIY, that we’re just packaging, material and training that’s already created and offering at, you know, different prices. The biggest phase that 60% phase, if you will, again, the really important factor there is that the price of that course, because it would be the biggest course is higher than the lifetime customer value of the membership, which is really good by the way.

[00:10:57]
They stay, people stay in for several months, in his particular membership. And so again, if people want that course great, they want to come in the membership. That’s great. But it’s, we’re serving them for how they would like to be served. So once we establish that, I said, okay, now we have to do is we have to make sure that we’re getting the right offer in front of the right type of person.

[00:11:26]
So I asked her member, I said, you know, could you be, would you be able to break down the audience that you serve into different segments? And they were like, oh yeah, for sure. There’s about four, there’s probably four segments of people that, you know, come into her world if you will.

[00:11:43]
And who all want to get into said school, which again, this person helps, helps them do. And I said, all right, amazing, got four segments. What are they? And so we identified what those four segments. And I said, okay, this is really, really key right here, because the segmentation is what kicks off the relevant follow-up to that person based on their segment.

[00:12:09]
So if they fall under segment, we’ll call it segment. Number one, they are offered that, you know, an offer is made to them based on that segment, that phase that there is. So it might be one of the courses that we just talked about, or it might be the membership, same thing for segment number two, same thing for segment number three, segment number three, by the way is that person’s rare.

[00:12:34]
And to go, they know that they need help. They know that they need content and they want, they know they need support. Okay. Boom, right into the members. And the fourth segment that we came up with, and a lot of you might resonate with this is this segment of people is interested. Like they want to get into said school, but they don’t know what they don’t know.

[00:12:57]
They don’t know what’s ahead of them. Right. And so they need a higher level of awareness. They know they need information, but that’s about it. Whereas our, our member here that was coaching. They know what this person needs, but this person doesn’t yet know that. So it’s their job to educate, you know, people coming in on this segment of what’s ahead, what’s going to be needed and how, you know, they’re there to support them in this journey.

[00:13:31]
So they need additional value. They need additional content to build that relationship some more. So the key here, and this is how I really want you to think about your business as well, segmentation, because the segmentation kicks off that relevant Follow Up, after they’ve segmented themselves and they segment themselves in a different color, different ways.

[00:13:56]
I’m going to do an episode coming up here on a whole bunch of different ways that you can get people to segment themselves because. You know, as CEOs of our business, where we’re making offers, it’s our job to get the right offer or the right information in front of the right person at the right time.

[00:14:14]
It’s the whole, advertising adage for, you know, forever now. Right, right. Person, right. Time. Right. Offer. And so that’s our job. We can’t do that. If we’re not segmenting, if you’re having one conversation with your entire audience, You’re doing them a disservice and you’re doing your business a disservice.

[00:14:32]
Okay. And so that’s what this was really about okay. We want to be, I don’t know how to serve the people who are coming to me who want help from me. They want information, they’re information hungry, and they are willing to pay some money. However, They’re not really there. They’re not wanting a member.

[00:14:52]
They’re not wanting to reoccurring fee because they’re not really sure whether they’re going to be using it or not. Okay, great. Is there something that we can just completely repurpose from what we already have into an offer that could help them? Yes. Check that box. It’s like, okay. What offer? What does that look like?

[00:15:12]
And then we looked at okay. Of our existing membership members. Where do they fall? What fate, you know, where do they fall in their journey towards getting into said, school member? The promise of the membership is to, they’re gonna, they’re gonna, you know, this person will help them get into said school.

[00:15:33]
Okay. Where do they fall in the phase? Where do they fall on the, in the customer? Well, we established 60% fall in phase one 30% fall in phase two, 10% fall on a different phase. All right, let’s get rid of that 10%. I don’t mean get rid of them know, but all right. Now, if most people coming in need help in one specific phase.

[00:15:56]
Okay. Create an offer. Just leverage content that we’ve already created. Create a one-time course. That’s DIY, here you go. And then for the other phase, do the exact same thing for the, for the larger phase. If you will, of people where most people that’s where most people are, it’s a bigger course and the price is higher than the lifetime customer value of the membership, but it really comes down to understanding what people want in your business, who are coming into you into the business.

[00:16:30]
What are they looking for? What are their objections to signing up for your offer or offers? Does it make sense within your goals, within your mission, within your values of the business, to create something new? If that is something you’re going to do, how do we make it easy?

[00:16:51]
Alright, cool. Content is already there in the membership. We can repackage it into a very simple other offer that is priced higher than the lifetime customer value of the membership. Then from there, segmentation, segmentation, segmentation. Once people are segmented,

[00:17:16]
based on which segment they’re in, they get followed-up with the appropriate offer or the appropriate followup information. Videos, emails, blog, posts, whatever it is, to help them into the next step in the customer journey.

So, this person walked away with incredible clarity after this call, and was like, “Okay, I can do this now!”

[00:17:37]
That’s our job within Accelerator. We are responsible to you, not for you.

Now we’re following up with them, making sure of where we are after this call. What do you need help with? Where are you in making these changes? How are things going, et cetera, et cetera.

So, there you have it. There are a couple of big takeaways here for you. As far as segmentation serving, how do you serve people in your business if they want information from you and they want to buy from you, but they’re not quite ready for a specific offer that you have?

[00:18:15]
And does it make sense for you to create something for them in this case? It did, right? Because it was super easy to be able to do that. With some simple tweaks in the business, as far as segmentation and understanding their audience, they can create something that’s going to generate a lot more revenue, and a lot more revenue on autopilot, too.

[00:18:34]
A lot of fun.

Thank you, my friend, for listening to today’s episode. I appreciate you, as always.

Coming up on the next episode a lot more great stuff. I have another membership episode coming your way with two very good friends of mine. I’m excited to share it with you.

So, until then, my friend, be well, and I’ll talk to you soon.

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