What Was This Session All About?
Do you have a business, and you’re looking into how to take it to a new level? Have you thought about memberships but aren’t familiar with how they work?
The founders of BossBabe, a company built for female entrepreneurs, took their company to a new level by incorporating membership models. They took some time at the T&C Summit 2020 to share their story and their methods and models for incorporating their goals.
The result was over six figures in revenue, and now they help women do the same thing. Let’s take a look at who they are and how they did it.
Who are Natalie Ellis and Danielle Canty?
They are the founders of BossBabe, an educational media company for female entrepreneurs. They have over 70 million uses of their hashtag on social media. They also have a top-rated podcast and a blog.
At BossBabe, they do things differently. Doing things differently has caused them to learn many things in a concise brief. They have only had their business for two years. Before then, they had other business ventures.
When COVID hit, they panicked. But they had one thing that would make it possible: a membership.
Follow them on Instagram @bossbabe, @daniellecanty, @natalieellis. Follow them on YouTube, and you can visit bossbabe.com to learn more about them.
What We Learned
Once COVID hit, people began to go over their finances with a fine-toothed comb brief and determine what they needed to get rid of. So, Natalie and Danielle made their BossBave memberships worth keeping. They offered a sense of community that helped their clients through the pandemic period and helped them succeed.
So, they came to T&C to share the framework. It’s called the MRR (Model, Reach, Retention). Model. They have monthly recurring revenue.
The Normal Marketing Funnel (As An Inverted Pyramid)
What a Membership Can Do to That Funnel
It flips the Normal Marketing Funnel on its side and stretches it out to increase the lifetime value of your clients.
Acquisition (Left side, inverted from left to right)
Membership is at the center, and it equals experience.
Retention (Right side, inverted from right to left)
- Brand Ambassador
You are 60-70% more likely to sell to an existing customer. Think about how that can radically shift your business model. What does it look like for your business?
Six Types of Membership Models
Netflix and streaming services.
Boxes and things you get in the mail every month.
This is where you bring people together with a common interest. Dating apps are one example.
This is where you are educating people on a specific topic or niche. BossBabe is an example.
Member Benefits Model
Chiropractic clinics, gyms, and some restaurants, etc., are examples of this type. You pay a monthly fee, and you got something in return.
These models offer software as a product.
How To Apply This to Your Business
Ask yourself why you wouldn’t want to get rid of a membership.
The most successful membership models often incorporate more than one model. For instance, Netflix is a media model, but everyone talks about the content. That is a type of community.
BossBabe is for female entrepreneurs who want to scale to six figures. People come for education. But they stay because of the community. This is where you can find an opportunity for an MRR model.
Ask yourself what people are coming to you for over and over again. Make it easy for them with your memberships. Once you know what that looks like, you can predict your revenue and business plan for the year.
Questions to Ask
- What is the one repeatable thing customers come to you for the most?
- What do people need before, during, and after they have bought from you?
- How could you solve this problem regularly?
- How can you package this on an MRR model to increase the LTV of your clients?
They asked these questions when designing BossBabe. They were able to launch the membership as their first product because they built an audience. Their audience had been with them long enough and trusted them.
Start with an audience first when using the MRR model. You have to build from there. Retention is critical when it comes to your membership.
The Six A’s
These are your roadmap to building a thriving membership.
- Action: Get your potential client to take action and purchase your membership. It looks different with every business. Look at what their next step is.
- Accomplishment: You want your members to achieve something right away. What are the milestones you can set in place for them? Make small milestones.
- Acclimatization: This is how someone gets used to your product. You want them to integrate it into their lives. The more you can penetrate their routines, the better. For instance, Netflix shows you things you might want to watch once you’ve watched something. Make them feel really comfortable with what they are doing.
- Accountability: How are you holding members accountable for actually using your membership? How are you reselling it to them? Remind them of their goals and why they came in.
- Advancement: Offer the next step after someone has been with you for a bit. Create ways for them to further their membership and education.
- Advocacy: It’s about how someone tells their friends about your business and how they inspire them to join as well.
What Do You Think?
If you watched this presentation or are familiar with Natalie and Danielle’s work, I want to know what you think. Leave a comment or tell a story below.