Get this wrong and it could bite you in the ass. Now you don’t need to pick between a course or membership.

They are the perfect combo. And to be successful I believe you should have a mix of both.

But, you have to understand the differences between them.

A course delivers a defined body of knowledge over a specific period of time. It is great for transferring knowledge from you to your audience.

Most courses have 5-7 modules delivered over a similar number of weeks. The problem is that most people can’t just take knowledge, instantly implement it and start seeing results.

That’s where membership comes in.

Your membership helps people implement knowledge and make lasting changes over time.

You see our results are a reflection of our habits, not our knowledge. A membership helps people develop the habits that are required to make effective use of the knowledge shared in a course.

And if you want to build the habits required to launch and scale an online business make sure to check out some of my other videos on lead generation strategies for course creators and membership site owners.

Imagine money dropping into your bank account month after month without needing to make more sales.

That is exactly what recurring revenue is and if you want it in your online business fast, listen up.

The 3rd leveraged online recurring revenue model is Group Coaching & Masterminds.

These formats have higher levels of interaction and intimacy than our front-end or back-end memberships.

So the meetings will be more frequent and in smaller groups.

Small group coaching packages normally range in the $197 – $997 per month range while Masterminds are normally from $997 – $3,000 per month.

Obviously, the higher price tags will dictate that your members will want a greater return on their investment.

I will often encourage new online businesses to start with a small group coaching program as often it is easier to identify and bring your biggest fans onboard at a higher price point than trying to attract more people at a lower price point.

And, if you want to attract a continuous stream of highly qualified leads at scale make sure you check out some of my other videos on lead generation strategies for course creators and membership site owners.

If you want to build recurring revenue in your online business memberships are the way to go.

A back-end membership is one that has a pre-requisite.

In other words, something that people need to have completed before getting access to the membership.

This pre-requisite could be a course, but it could also be people who have purchased a service or product from you and you want to help them either take the next step on their journey or get a result faster.

The main difference between a front-end membership and a back-end membership is that only people who meet the pre-requisite are offered entry to the membership.

This is a fantastic way for ensuring that the membership community all have a common starting point or share something in common.

Back-end memberships tend to have a higher price point as you have an existing relationship and trust built with the audience which makes it easier to deliver a higher value offering.

And if you want to take our relationship to the next level make sure you check out some of my other videos on lead generation strategies for course creators and membership site owners.

There are 3 primary membership models that you can use to build recurring revenue and get the compounding effect working for your business.

And you are not limited to one type or the other. In fact, when I am helping my clients scale their online business, we will normally combine these to amplify their impact.

A front-end membership is one that you promote directly.

This may be a standalone membership, or it could be an entry point to bring people into your world with the intent of offering them higher-level memberships, courses, or even products and services.

Most front-end memberships range from $17 to – $97 dollars. A front-end membership doesn’t always have to be a pathway to somewhere.

It could be a standalone membership, but you are leaving money on the table if you don’t have a logical next step for people to take after they join the membership.

And, here is a logical next step for you to grow your online business. For more on lead generation strategies for course creators and membership site owners, check out some of my other videos.

If you want to build recurring revenue in your online business, there are 3 approaches you can take.

Now no matter what type of business you have today, I believe you can leverage any of these models.

These will work equally well whether you want to supplement your existing revenue or build an online knowledge business.

FRONT-END MEMBERSHIPS

These are normally lower ticket memberships priced from $17 to $97 per month.

Often they are the entry point to your online business and can be used as a method to attract people into your world in a low commitment and investment way.

BACK-END MEMBERSHIPS

Back-end memberships normally have an entry requirement, which could be that they have completed a course or a program or have been a client.

Normally these backend memberships are at a higher price point starting from around $47 and going all the way up to $497.

GROUP COACHING & MASTERMINDS

Group Coaching and Mastermind groups will normally be the highest value memberships and these range from $197 per month all the way up to $2,000+ per month.

Finding new clients is hard, it’s expensive, what works today might not work tomorrow.

It can be exhausting stuck on the launch treadmill, running from one promotion to another.

Now you may have a kick-ass course, product, or coaching program, but I have seen the devastation caused to an online business when even one launch goes sideways.

And trust me it happens to even the biggest names in the industry.

The antidote is to build recurring revenue through memberships and subscriptions.

When you launch a membership or subscription you sell once but profit over and over.

And not alone is this a good thing for you, but when structured correctly, there are massive benefits for your members or subscribers.

They know that you are in it for the long term with them. They have space and time to implement and build the habits they need to truly succeed with what you are teaching.

And, if you want to truly succeed in launching or scaling your online business make sure to check out my other videos.

There is a force that once you have working for you, will almost guarantee your business and financial success.

The story goes chess was invented for an Indian King. The King was so impressed with the game that he granted the inventor any reward he wanted.

The inventor simply asked for a single grain of rice on the first square of the chessboard, then two on the second, four on the third, 8 on the fourth, and so on doubling each square.

The wealthy King laughed at such a meager request and granted it however, the king learned a painful lesson about the power of compounding.

You see using the compounding effect by the 15th square the inventor collected a total of 32,767 grains of rice.

By the 20th square, this had grown to 1,048,575 grains of rice. By the time you get to square 64, there are over 18 quintillion grains.

And if you want your online business to grow like the inventor’s grain stash check out some of my other videos.

Even with the best content and the best marketing, your online business success is far from guaranteed. You also need the right business model.

What worked 5 even 3 years ago is not working today.

One of the biggest gifts you can give your online business is monthly and annual recurring revenue. Subscriptions and memberships give you reliable and predictable cashflows.

They help you avoid the feast and famine cycles and give you financial stability. This lets you focus on getting results for your clients rather than worrying about where your next payday will come from.

Whether you have a physical product, service, or digital product you can build a membership or subscription layer into your business.

Once you experience the joy of seeing monthly and annual payments automatically hit your bank account without having to always be in sales mode you will instantly be converted.

Stories are a great way to position you and your online program. But so many people get this wrong.

An effective client success story must have the correct structure. The person you choose must be relatable.

Picking a superstar or someone who achieved outlandish results will work against you. People should never be able to say well that is fine for them because they had an advantage.

Your story must build a very clear image of the before state.

The before state should include one very specific problem challenge that the hero of your story faced. This problem should be common in your audience and cause lots of pain.

The after state should paint a very clear image of how the life of the hero of your story is now better. What can they do, who have they become, what is now possible for them?

The path from the before to the after is your program or your method.

And if you want a path from where you are today to a profitable, stress-free, online business make sure you check out my other posts.

Most online promotions fail. When launching your program online you need to bring people on a journey.

No matter how good your offer is some people just are not ready to buy. There are 3 beliefs you need to help them develop.

1. BELIEF IN THEMSELVES

People need to believe that they can get the result that you are offering. Your offer may be that can make $1m in 3 months but if they don’t believe that they can do it you have lost the sale.

2. BELIEF IN YOU

The person has to believe that you can help them achieve the result that you promise. They have to feel they know, like, and trust you. This doesn’t take long to establish but you have to build personal authority.

3. BELIEF IN YOUR PROCESS

Someone may in themselves and in you but if they don’t believe you have a step-by-step process that will help get the result you will lose the sale.

And if you want a step-by-step process to grow your business make sure you check out my other posts.