Stu McLaren's Top 5 Lessons for Creating and Growing a Membership
Let’s learn from Stu McLaren on what it takes to start a successful membership or recurring revenue stream.
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In this post, Kelsey shares 5 valuable lessons learned from hosting membership expert Stu McLaren inside the WAVE mastermind.
In this blog post, we will cover...
What is a Membership, and why should you consider starting one?
And we will also dive into…
The power of pricing psychology,
Delivering your membership content to appeal to multiple learning styles,
The importance of not overwhelming people,
The ‘open and closed cart’ model for memberships,
Things to consider before you start a membership.
Read on to discover how these lessons could help you effectively navigate the world of memberships and recurring revenue!
I recently had the opportunity to host Stu McLaren (aka The Membership Guy) inside of the WAVE Mastermind for an intimate training on All Things Memberships & Recurring Revenue.
We are so lucky to live in the same province as Stu, and have a personal connection to him - so we decided to bring him into our mastermind so that we could learn about how powerful membership business models can be.
In this session for our members, he shared insightful lessons that are not only relevant for those in the membership space, but for anyone looking to grow their business and make an impact.
New to Memberships?
A membership is a monthly subscription that bundles your program, product, or service for convenient delivery on a monthly recurring basis.
For example, imagine your gym membership.
You pay a monthly fee to access the gym's facilities and services as you work towards your fitness goals. It's a commitment that can last for months or even years!
That means a great chunk of revenue for the Gym, once you sign on!
Just like gyms, Stu suggests entrepreneurs offering programs or courses can transition to a membership model. Provide ongoing value to members each month instead of a one-time fee or 90-day timeframe.
Do you sell a membership in your business?
Have you considered starting one?
Let’s read on to learn more…
#1 The power of pricing psychology.
Stu emphasized the importance of breaking down prices to make your membership seem super affordable and approachable.
Think of positioning your membership as “it costs less than a dollar a day" instead of "it costs $30 a month."
Pricing strategy can make the world of a difference in conversions, and when we choose the right price and present it in a way that feels affordable, you’ll get tons of members without hesitation.
As another example, $9.99 appears cheaper than $10 because our minds round down. This can make your products seem more affordable and attract even price-sensitive customers.
Opt for this strategy to create the perception of value and increase sales.
#2 Be sure that your membership appeals to multiple learning styles!
Whether you're running a membership, creating an online course, or launching a new program: remember to cater to auditory, kinesthetic, visual, and multimodal learners.
This means that you should offer a variety of content in the form of video, written text, challenges / learning experiences, etc.
Adult learning styles vary significantly, reflecting the diverse ways in which individuals process and retain information. Understanding these differences is crucial for effective education and training programs. Here are some interesting statistics and facts about how adults learn differently, particularly focusing on auditory and kinesthetic learning styles:
Making your content accessible can boost retention rates, too!
#3 Avoid overwhelming your audience.
Stu mentioned that the number one reason that members leave a membership is because of overwhelm.
To make this one simple, Don’t Overwhelm Your Members!
The last thing you want to do is say ‘welcome to our membership… here are 5467 trainings and 67349 podcasts and 1000 templates to get started with’.
Instead, think about providing a clear, manageable path for a new member in order to prevent burnout and keep new members engaged!
#4 Consider open and closed cart models.
When something is always available, there’s NO urgency and therefore less sales are made!
Stu recommends launching with an ethical open and close cart model!
When you close your membership on a certain day (ex: our 'learn to bake sourdough membership closes on May 1st and doesn’t reopen until the Fall’) you encourage fence-sitters to make a decision!
Either they’re IN or they’re OUT!
Adding urgency by opening and closing enrolment periods can drive higher conversions. Scarcity can motivate action, so experiment with limited-time offers when possible.
#5 Memberships are great, if they feel aligned with your Business Model, but they’re NOT for everyone!
While memberships can be incredible, they're not for everyone.
Don't feel pressured to follow the trend, and rest-assured that you can make a lot of money and deliver a big impact in MANY ways. Memberships are not the best for every business owner and they certainly require a lot of work to maintain and to prevent churn.
Evaluate what's best for your business and your clients, and choose a way to package your services that feels like the best way for your clients!
Remember, there's no one-size-fits-all approach to launching a membership!
Take these lessons and adapt them to fit your unique vision and goals.
That's a wrap on today's blog!
Which lesson resonated from our training with Stu the most? Let's keep the conversation going (you can find me @kelseyreidl on Insta!).
And if you want to explore more about building your business, feel free to connect with me. I'd love to support you on your entrepreneurial journey. #VisionaryLife
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