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208. How to add Recurring Revenue to your Business

The Ecommerce Roadmap · with Stu McLaren · March 26, 2024 · 40 min

Summary

This episode reveals how ecommerce businesses can build sustainable recurring revenue streams, moving beyond one-time purchases to create predictable income. The host shares their own journey from struggling with a membership program to building a successful, million-dollar Inner Circle, emphasizing the strategic shift from services to product-based ecommerce memberships. Learn how to leverage your expertise to foster strong customer relationships and financial stability through subscription models.

Key takeaways

Themes

subscriptions & ltvcustomer retentionfounder & leadershipdtc strategy

Topics covered

ecommerce membership modelsrecurring revenue strategiessubscription boxescustomer loyalty programsbuilding online communitiesmembership program pitfalls

Episode description

Way back in late 2016 I thought it would be a great idea to start a membership. I called it the Inner Circle, and it was for people like me. Ecommerce store owners who were trying to grow their sales. I opened the membership to about 70 people. I did it because I thought it would be the easiest way to offer support and teach them what I had learned the hard way. I couldn't have been more wrong. It just about killed me, and 5 months after I started, I was ready to close the doors. What I know now is that a Membership is a great way to provide ongoing training and support. The truth is that I was doing it wrong. In early 2017 a friend recommended I follow Stu McLaren, because he knows how to set up a Membership program that really works for the students, and doesn't almost kill you, lol. I followed Stu, joined his program, and learned how to build an amazing Membership program. That was almost 7 years ago. Since then, we've taught thousands of store owners how to grow a profitable eCommerce business, and the Inner Circle has generated millions of dollars in revenue. We have an amazing team of 20 women. I'm so proud of how they help our members make progress, and I am thrilled to be able to pay them very well, and provide a flexible workplace. I'm sharing this with you because a few years ago I realized that what I have learned about memberships for services can also be applied to eCommerce stores. In fact, eCommerce store owners can set up memberships that generate enough revenue to pay their bills every single month. I'm sure you can imagine what's possible when you have thousands of dollars of recurring revenue coming into your business every single month. If you'd like to learn more - click here. You can watch or listen to a conversation I had with Stu McLaren about how eCommerce store owners like you are implementing profitable Memberships right now. Talk soon, PS: Stu i

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Frequently asked about this episode

What does this episode say about subscriptions & ltv?
Don't shy away from membership models in ecommerce; they can provide stable, predictable income and significantly increase customer lifetime value.
What does this episode say about customer retention?
Learn from the host's initial mistakes: successful membership programs require a well-structured approach and ongoing value delivery, not just a good idea.
What does this episode say about founder & leadership?
Consider Stu McLaren's strategies for building effective membership programs, focusing on member support and a sustainable operational model.
What does this episode say about dtc strategy?
Leverage your existing expertise or products to create exclusive content, community, or subscription boxes that offer continuous value to members.
What does this episode say about subscriptions & ltv?
Phased rollouts and active customer feedback loops are crucial for refining your membership offering and minimizing churn.

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