You may be wondering if the membership website is the wholly grail for creating a lucrative continuity program with a highly automated system then why do I care about other products?
Okay, so maybe that’s not what you were wondering, but at one point I certainly did. The reality is that if you fully develop the different opportunities your coaching company allows you then you will undoubtedly find that a quality membership website will become the cash cow of your company, while requiring minimal management. You will also discover that if you have a good mix of product offerings they will work off of each other, ultimately creating more sales and customers than if any one of them were offered alone.
There are some pretty simple reasons for this, for starters people are more apt to make smaller single payment purchases as a new client, and they often elect to purchase a physical information product from a business they are not familiar with. Introductory products give people a taste of what you have to offer and allow them to make smaller investments resulting in higher overall conversion rates and leaving you with more clients to up-sell.
This doesn’t mean that you have to create your introductory product first, in fact if you have adequate material and have done ample market research you can choose to begin building your membership website right away. This gives you the advantage of additional time for it to grow and provide reliable income. If you decide to take this route, do yourself a favor and read book in its entirety before beginning to implement your plans. You will find sections of this chapter helpful in product creation for your membership website.
If you don’t feel comfortable taking that step the introductory product is a great place to start. There are a lot of options available to you, and your initial success will help fuel the next phase of your business.
Philosophy
Before I get started on the step-by-step instructions on introductory product development, it’s important that we talk a little bit about why this is optional and the philosophy behind your product development. This stage is optional because if you feel that you have enough material, prospect feedback, and that you are ready to dive into creating your membership website and selling it, then you can. That being said, even if you plan on jumping right into your membership Website development you should still read this section as it contains information that you will need to develop the “product” content.
I have added this optional introductory product “stepping stone” for a few reasons:
• Speed – For some people, the confidence created when selling an initial product even for a small price is necessary to get them through the slower process of building and promoting a membership Website. If you do not already have an entry level information product and you choose to skip this step, it is important for you to understand that getting your membership Website up and going will take a little time. If hearing that causes you some panic, then start with an entry-level product first. It’s a great addition to your product funnel, will generate some revenue and reassure you by earning your first clients.
• Stepping-Stone – Gives your clients the opportunity to make a one-time small investment to “try out” your material. Then if they like it they can move on to making a bigger commitment to a membership Website. This can lead to a higher prospect to client conversion rate.
• They Can Touch It – People who don’t know or trust you very well will, generally, find it more comfortable to purchase a physical product vs. a virtual one – even if they are both “information” products.
• Part of a Package – One great way to “marry” the benefits of the physical entry-level product and the membership Website is to combine the two. You can create the membership Website as a “level 2 – support product” that is included with the entry-level product for a limited time. If your site isn’t done yet you can give them a bonus certificate to activate their trial membership after the launch (just make sure they understand that it is not available immediately).
To be fair, I should tell you there are a few drawbacks to creating an entry-level product now.
They are:
• Membership Site on Hold – It delays the completion of your membership website which will ultimately be the bread and butter of your company, and one of the biggest resource a successful membership website needs to be successful is some time to snowball and multiply its members.
• Material & Shipping Costs – If you compare the overhead expenses of creating a physical product compared to a membership Website that you build yourself from a template or hire someone to build but upload the content and manage yourself, you will probably find that there are more costs involved with physical products. This could be incorrect if you are planning to hire a top firm to build you a very high tech custom Website. It generally isn’t the per piece expenses of physical information products that creates a problem, it’s the fact that to get custom material and good rates you will need to order in bulk – and then you are stuck with these expenses until you unload the inventory.
• Automation Takes Planning – When you launch your membership Website you will quickly find that there are a lot of tools built into current systems to make automating many of the mundane business steps easy. Unfortunately, when it comes to physical information products you don’t have the same luxury. Inevitably you will begin by building them in-house, either yourself or with the help of some part-time staff. Then you will have to decide if you would rather outsource the project to an individual or a fulfillment house because keeping the tasks of creating products, filling orders, accepting returns and shipping will not only slow your business down but make impossible enjoying the level of freedom that an online business can provide.
The bottom line is that an introductory product is something that you will want in your product funnel sooner or later, and makes a great lead into your membership Website. If you are better off creating it before or after your membership Website depends on your unique situation.