Should You Offer A Lifetime Membership To Your Membership Site? Don’t Make My Mistakes…

Summary

In this video, the speaker shares lessons learned from offering a lifetime membership at Blog Marketing Academy. While lifetime memberships can provide a quick cash influx, they can lead to cash flow issues if relied upon too heavily. The speaker discusses mistakes made, such as over-promising benefits and pricing the memberships too low. Key takeaways include offering lifetime memberships with a strategy, setting clear limits on support and content, and ensuring proper pricing (2-3 times the annual fee). Ultimately, the speaker emphasizes the importance of recurring revenue and shares their pivot to offering services instead of relying on memberships.

Takeaways

• 😀 Lifetime memberships can provide immediate cash flow, but they come with long-term challenges.
• 😀 Offering recurring memberships (monthly or annual) is often more sustainable for cash flow.
• 😀 Over-promising with lifetime memberships (e.g., endless support or frequent workshops) can lead to customer dissatisfaction.
• 😀 Pricing for lifetime memberships should be significantly higher than annual memberships, ideally 2-3 times the annual rate.
• 😀 Lifetime memberships work best when offered under limited circumstances, such as a one-time offer or an upsell.
• 😀 Be cautious about making ongoing commitments with lifetime memberships, such as providing unending support.
• 😀 Relying too heavily on lifetime memberships can reduce customer lifetime value and lead to a lack of repeat sales.
• 😀 Offering lifetime memberships as a sales strategy can be effective, but only if done strategically and with careful planning.
• 😀 The risks of lifetime memberships include being stuck with customers who have already paid but expect ongoing value without further purchases.
• 😀 Transitioning to recurring revenue models like concierge services can help avoid the issues of over-relying on lifetime memberships.

Q & A

What was the speaker's initial approach to offering lifetime memberships?

The speaker initially offered lifetime memberships as part of a Black Friday deal, which was successful and generated a lot of revenue. This led them to offer lifetime memberships multiple times after that.

Why did the speaker rely heavily on lifetime memberships?

The speaker started relying too much on lifetime memberships because they encountered increasing friction with selling monthly or annual memberships, making lifetime options seem like an easier sell.

What were the consequences of over-relying on lifetime memberships?

Over-relying on lifetime memberships created cash flow problems, as many members who had already purchased lifetime access no longer had a reason to buy additional products. This led to a significant decrease in the speaker's customer lifetime value.

What promises did the speaker make that led to challenges with lifetime memberships?

The speaker promised things like office hours, ongoing workshops, and releasing a new course every month. These promises created expectations that became difficult to meet over time.

How did offering lifetime memberships impact the speaker's business model?

Offering lifetime memberships led the speaker to pivot their business away from offering ongoing training content to focusing on services like concierge. This shift was partly due to the unsustainable financial model created by lifetime memberships.

What lessons did the speaker learn from their experience with lifetime memberships?

The speaker learned that lifetime memberships should be used strategically and not relied upon as the main revenue source. It's important to focus on monthly or annual memberships, limit promises, and avoid pricing lifetime memberships too low.

What pricing strategy does the speaker recommend for lifetime memberships?

The speaker recommends pricing lifetime memberships at least 2-3 times higher than the annual membership fee to ensure sustainability and avoid undervaluing the offer.

Why does the speaker advise against always offering a lifetime membership?

The speaker advises against always offering a lifetime membership because it can diminish the sense of urgency and exclusivity, making it harder to sell recurring memberships and maintain consistent cash flow.

What is a key strategy the speaker suggests for offering lifetime memberships?

A key strategy is to offer lifetime memberships as time-limited offers or upsells rather than keeping them open all the time. This creates a sense of urgency and helps preserve the value of the offer.

What time limits or caps should be considered when offering lifetime memberships?

The speaker suggests placing time caps on support and ongoing content access. For instance, offering one-year support or access to future content for a limited period can prevent an overwhelming commitment from the business owner.