-- also posted on side hustle and small business because I am requesting feedback
Hey guys. I'm working out the details of a new business venture (low cost, budget friendly local paid advertising, 10k distribution shopper - I can tell you more about that if you like, and are interested in running your own local shopper but it's not the purpose of this post request) and then got this ...wait for it ...brilliant... idea about how to easily turn it into a membership option. Not an online membership website but a membership club with a single annual membership fee, where the advertising business promotes a specific sort of product and in exchange all of their promotion, marketing and advertising is free.
The members likewise pay their annual membership but then they are automatically eligible to sell memberships and collect the revenue at point of sale. No waiting on checks and payouts. They are also gifted and may purchase more membership kits at wholesale rate and the margins on it are pretty sweet. Total production for the kits runs about $5 but can be pulled to $3)
It occurred to me that going about it this way helps those looking to make serious money from their efforts, the product is something everyone is receptive to and there's nothing about it that would make anyone go dude, god...this sucks ...it's something people would genuinely be proud to promote and literally every demographic is a potential new member...so if the members themselves do the work to bring in new members, then I believe it's fair that they should make 100% of the money they collect off those efforts instead of doing all the work for some bs percentage. The memberships range between $99 a year regular members and $250 a year business membership (because there is some preliminary work for them that needs to be done) depending on option selected.
I've read these making money subs and you tube channels and so on long enough to know what biz op seekers are looking for - little to no selling - or something that's just a no brainer that people will see legitimate value in (sells itself, basically), low start up or free to start, no catch, no hidden gotchas, no pestering people; instant profit at point of sale, scaleable, the option to rep for an entire region and handle membership sign ups in that region for additional profits...
So going with this model, the members are the ones promoting the range of products in the process of selling memberships, which drives the traffic to the businesses and increases their exposure, sales and profit. If the members are being compensated immediately for the promotion, advertising, marketing they are doing on behalf of the member businesses then that allows the unique opportunity to offer the businesses completely free advertising - and they can still opt out of being a member business. They offer the type of product exclusively for our members and in exchange, they never pay a dime for the promotion of those products, and by virtue of those products, the business overall.
Businesses save a ton of money in marketing because they have a growing network of members promoting them across the country. Members enjoy serious savings and that product everyone is receptive to...and member reps make money immediately, can scale, and start free. Businesses may also vend memberships (opt in) and collect that revenue as an additional income stream. It's a membership add on that doesn't cost them anything and that they earn money off of for those they sell to their customers - or they can give the memberships out as gifts. They want the exposure and the results. Their buy in is a specific product offered exclusively to members.
Question - how would I make money then?
Answer: Explained above. Same as everyone else. Brining in new members.
At this time I'm not talking about the product, the nature of the business, etc. but just the model above. What might I be missing do you think and is this something that if you came across it looking for making money opps would get your attention? If it wouldn't, please share why not - so I can maybe revisit and add or remove something to make it ideal.
My goal was to eliminate the barrier of entry which is usually high cost and low value. I studied a little on viral marketing and word of mouth, and figured if the members are compensated since they'd be doing the work, they keep all of it on the spot which is added incentive to make more - but it also provides them with the realism they need to determine if selling anything is right for them.
They don't bite off more than they can chew, they have no high cost or overhead expense, and all members who join receive a complementary membership right out of the gate so they can test the waters and see if they're any good at it. If they are, they earned free money. If not, they can give it away and just enjoy their own membership.
Trying to see if I've left out anything, overlooking anything perhaps, to get it right before applying it. The model, once tight, can be something anyone can do with just about any type of product really...but people get greedy and want to start jacking up the rates/fees/costs and it dilutes the simplicity and frankly, starts stiffening up the barrier of entry. I went pure Keep It Simple. It's less work on my end, the businesses don't have to track anything except as they normally do, they can opt in to the program or just not do it at all and take advantage of a national network of reps promoting them for free.
For higher end products then it might be justified to increase membership but the model is the same - business opts in, offers exclusive products, pays nothing; members sell memberships for accessing special exclusive products, earns instantly per sale, can scale and operate anywhere in the country, even mobile, promote membership club, everyone wins. A light weight easy opt in membership club add on.
Your feedback is appreciated.
Thank ya kindly.