5 Reasons Membership Has its Privileges

membership

SaaS, software as a service, or software membership, has been a venture capitalists’ dream business model. Software, which costs close to zero to deploy, is paid for monthly. To displace the software provider is a near impossible task given the low cost and the switching costs with data and familiarity. Previously in the entertainment world, the business model followed the ala carte model. Pay-per-view, movie tickets, CDs, DVDs were the bellwether for most of the industry.

With the advent of Netflix and software company SalesForce, Software as a Service or SaaS has become the darling of technology. Nearly every industry now is moving into this business model including movie theaters through MoviePass, adult performers through OnlyFans, music through Spotify, and now film production companies like A24. And now it appears that it will soon become the darling of influencers. Premium memberships and monthly subscriptions will trump advertising as the primary source of revenue for influencers. Here are a few reasons why that is happening:

1 – Consumption Smooth

Content is hard. Some months you make content that everyone wants to see and some months you don’t. With memberships, you are able to make estimated revenue regardless of the whimsy of your fans’ tastes. In addition, you can enhance your membership subscriptions by providing exclusive drops, merchandise, and content that can further your brand and following.

pexels cottonbro 9208217

2 – Membership is like a buffet

People love buffets and the all you can eat model. Everyone’s eyes are always bigger than their stomachs and while some professional eaters you might lose on, the majority of customers will always eat less than the perceived cost. In addition with heighted customer acquisition costs, you’ll be able to offer lower prices to your customers; once you go with the buffet model, the ala carte model seems expensive on a per piece basis.  

Apple loves to make additional money by selling you its peripherals; however, after spending $5,000 on a new Mac, it is pretty annoying to have to forget to spend another $5 on some cable or connector. On the flip side, the cost of going out has increased dramatically. Netflix at $15 per month looks very inexpensive compared to going to the $45 per person movie theater experience ($10 transportation costs, $15 tickets, $20 concessions). Memberships look much more appealing!

3 – Habits are hard to break

The low cost of a monthly membership subscription allows it to fly under the radar on most people’s budgets. With your fans subscribed to your content, it ensures that they are more likely to come and check out your content, and hopefully share it and spread it around in order to attract more fans and eventual subscribers. However, if they do forget, well, that’s okay too since the content has already been paid for. 

pexels cottonbro 9209719

4 – Content calendar 

With your finances taken care of, you’ll be able to plan your upcoming months better. Perhaps you want to try a piece of experimental content. You might want to venture into another realm (i.e. Actors might want to try podcasting, models might want to try writing, or painters might want to try sculpting). Or more than likely, you just want to take a much needed vacation.

5 – No need to start over every month

The beauty of the SaaS model is that every month you can build from the previous month. So if you earned $5,000 in subscriptions last month you don’t have to start from zero this month, rather you start from the $5,000 and any new subscriber adds to that. Compare that with the ala carte model where every month you need to continue on the sales funnel treadmill: hope that new people discover your content, drive enough visitors to your site, and enjoy a small conversion to paid content. Rinse, lather, repeat.

Do you have membership tiers on your content? How have you found your fans reacting to your paywall? Do the above points hold true? Drop us a line and let us know how your subscription business is going or how fast your membership is growing!

5 Reasons Membership Has its Privileges via @famecastmedia

Related Articles

Share via
Copy link
Powered by Social Snap