Business models
The membership business model
The membership business model: fans or members pay regularly for access, community and things only they get. People pay to belong, and for more of someone they trust.
How it makes money
People pay to belong, and for more of someone they trust. It can work with a small audience, since a few hundred members can be a real income.
Real examples
- Patreon lets creators charge members monthly.
- Costco charges a yearly fee to shop there.
The numbers to watch
- Number of paying members
- Share who renew
- Time spent making each members-only piece
Who it fits
Creators, clubs and experts with a loyal group, even a small one.
What goes wrong
You promise more than you can keep making each week. Burnout is the common cause of closing.
Try it this week
Ask your 20 most active followers what they would pay for, and sell it before you make it.
Then give it a time: one block of 90 minutes this week, in your calendar. Our playbooks have the next steps for finding your first customers.
Questions
What is an example of the membership model?
Patreon lets creators charge members monthly.
What is the biggest risk with the membership model?
You promise more than you can keep making each week.
Plan your first week of building it
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