Membership business models are impressive stuff to start a business right now—and for good reason also! These business models offer marked opportunities for entrepreneurs with a focus on creating long-term value and dedicated communities. Surprisingly, 70% of businesses see membership models as the key to future growth. After all, growth is the ultimate business goal!
So if you are aiming to start and grow your membership business, exploring these models will be your next big move! Let’s get to know the 10 best successful membership site business models to start in 2024 to guide your decision.
What Is the Membership Site Business Model?
Starting off, let’s first see what the membership business model is.
A membership business model is a special type of business strategy. It allows the clients to access services, products, or additional benefits.
You can think of it as like a library card. You sign up for free and get access to the library, books, and internet. In the membership site business model, the clients have to pay to receive the benefits.
You know online membership works similarly, but in a digital way. Here, you pay to access the digital service.
However, some membership business models do not follow the usual subscription business models. (i.e.: Co-op.) Here you will need to pay one time to get access for a lifetime. It’ll not charge you regularly.
Why To Choose Membership Business Models To Start Your Business In 2024?
Wondering why you should even choose membership business models to start your business this year?
Well, it can be attributed to the fact that membership business models offer a number of advantages. For your organization as well as for your customers.
On the very basic, it’s easier to start your business with a membership model. That a membership expert, Stu Mclaren calls a founding member launch.
However, let’s check the reasons from both perspectives.
1. From the Perspective of Organization
First, let’s get to know why the membership business model is beneficial for the organization.
Regular recurring earnings
A membership business model can offer you stable and predictable income when you sell your service or product to a loyal customer base.
In fact, 63% of established membership businesses report that their income has increased over the last year.
It clearly describes how the membership business can be beneficial for consistent revenue.
It’s true; it can’t guarantee income. But you can easily predict customer acquisition expenses and membership marketing once your membership is up and running.
Moreover, your business will also have increased lifetime value and lower churn rates.
Exponential growth of the business
You can grow your business markedly with the membership business model. That’s because you are likely to gather as many members as you want.
There is no limitation for your store on how many people can join!
Obviously, the more members you will have, the bigger your business community will be. Also, the more the opportunities for business success.
Moreover, you can keep your business structure the same as the membership business model. You won’t require a lot of resources when you start to grow like the other online businesses.
Reduced costs for retention
Truly, the membership business model can also reduce your retention budget for the business.
Your customers are likely to stick with your business until they get something to get them to move and cancel their membership.
They will keep buying from your business as long as you offer good quality service. Moreover, you can also save money if you offer long-term plans. For instance, for a year or more.
Increased loyalty of customers
The membership business model has the power to attract your committed customers. Like those who are more likely to support your business and want to spend more on your products.
Moreover, the membership business model has the potential to improve your client satisfaction and retention.
So, when you want word-of-mouth referrals, starting your business with the membership business model can be worth considering.
Established audience for brand new business.
You know a business model for memberships can help you to have a dedicated audience quickly.
You will be able to attract your customers to your new business. Let’s get it understood with an example.
Suppose you run a membership business for cars and have almost 10,000 members. Somehow you decided to start a new business selling these car tools.
Here you can attract at least 50% of your previous customers from the previous business for this new one. It’ll be possible because of your previous reputation and the trust of your members.
2. From the Perspective of Your Customer
Additionally, the membership site business model offers impressive benefits for your customers too. It includes,
Access to premium service
Generally, a membership business model depends on a membership site. It provides customers access to their information, tools, or products any time they need it.
Of course, it doesn’t matter whether the owner or team is available at that time or not.
Cost saving
The membership model typically offers competitive pricing to the customers to stay with the brand or business. You know it is beneficial for the customers over the large one-time investments.
Can join a community
The most attractive feature of the members only business model is its community. Your customers are likely to feel they’re actually part of something in your business. You know, 63% of people join membership just to connect with their peers.
Top 10 Successful Membership Site Business Models to Start in 2024
Well, now that you know why the membership site business model is beneficial this year, let’s get to know how to start a membership club business or any other type of membership business with successful membership models.
1. Online Learning Platforms
One of the most successful membership business models to start in 2024 is the online learning platform.
And of course, it is a big one!
You know the most common type of membership site is related to entrepreneurship and businesses. For about 22.8% of all sites. And here education is a close second. For about 22.7% of membership sites.
It comes as a real shock, right? That’s not the end here.
The global e-learning market size is expected to surpass $848+ billion by 2030. No wonder to the fact that it’s a multi-billion dollar market already.
That’s enough to clearly describe how high success potential is with the online learning membership to start.
Online learning platforms offer access to a number of educational resources to their members. For instance, tutorials, video courses, interactive workshops, live webinars, and so on.
Your members can get continuous access to the new content and updates. Moreover, this membership model ensures steady revenue.
Examples of online learning platforms:
EzyCourse: It is an all-in-one platform to create, sell, and manage your courses. Moreover, the platform offers extensive membership plans to get access to your educational content.
You can build a customized learning experience with EzyCourse. From here, you can get membership tier pricing, community features, and exclusive content.
EzyCourse also supports recurring payments. It means you can set up a subscription model, and the members have to pay to have continuous access to your courses.
As you see it all, the EzyCourse is ideal for you if you want to start an online learning business.
Coursera: Coursera specializes in certificate and degree programs. It offers you a really wide range of courses. It partners with prestigious and famous universities and educational institutions.
2. Subscription Box Services
Let’s come to the next successful membership site business model example, subscription box services.
This business model involves recurring delivery programs. It sends handpicked, curated, personalized products directly to the doorsteps of the customers. Generally, it is on a monthly basis.
The major selling point of the subscription box services is their convenience. Each subscription box contains beauty products, food, books, fitness products, and whatnot.
The best part? – sudden surprises from the subscription box services!
Some companies often send different selections of products every month. The customers really never know what to expect! It adds an element of excitement to the subscription box services.
The market potential of the subscription box services as the membership business is also very high. To its surprise, the global subscription box market was over $31 billion in 2023, and it is expected to reach notably $145 billion by 2030.
All in all, as you see, subscription box services use the power of surprise and discovery. And this element of excitement enhances customer satisfaction and retention.
Moreover, it can provide you with a steady income. You can expand your business by offering new products and targeting new markets.
So, take the power of surprise and make your business a success.
Membership Site business model example of subscription box services:
Blue Apron: It is a meal kit subscription box service. The service delivers fresh and preportioned ingredients to its subscribers. The blue apron is the ultimate help for its members in making home cooking easy and convenient.
Birchbox: It is a beauty subscription box service. It sends its subscribers boxes of beauty and grooming samples every month. Moreover, the surprise element of Birchbox keeps the members engaged and excited.
3. Exclusive Content and Media Memberships
Looking for premium and specialized content that is not available anywhere else. Then the exclusive content and media memberships can serve you all.
In this membership model, your members have to pay a recurring fee for exclusive, never-before-seen resources. It can be videos, articles, or some type of insider information.
This membership business model is growing rapidly due to its high quality and unique content.
Moreover, it offers a dedicated community for the subscribers who are willing to pay for the premium experiences.
Examples of exclusive content and media platforms:
Patreon: This membership community platform allows the creators to offer unique content to their supporters. For instance, special videos, personal updates, or new release access.
The New York Times: The New York Times offers digital subscription options. The subscribers can access new articles, investigative reports, and deep analyses.
Also read: How to Start a Membership Site From Scratch in 2024
4. Fitness and Wellness Memberships
No wonder we like to stay fit and healthy.
But almost every one of us seems to like searching for some comprehensive approaches to achieve a more healthier and balanced lifestyle. In this way, fitness and wellness memberships can be an all-in-one solution.
Moreover, it is becoming popular also day by day and is expected to reach $13 trillion by 2031.
Fitness and wellness memberships offer a number of health and fitness benefits. It includes wellness programs, personal training, or workout classes. These programs can be online or in person.
The membership also contains online communities for like-minded people. Your members can share advice and stories of their successes and struggles in these forums.
All in all, the fitness and wellness membership business model appeals to a large number of members and ensures consistent encouragement.
Examples of fitness and wellness membership companies:
Peloton: It offers fitness classes based on the subscription. Here the members can access the live and required workouts from home.
MyFitnessPal: The app provides personalized tracking for nutrition and fitness. MyFitnessPal helps members track their health easily.
5. Software-as-a-Service (SaaS) Memberships
Now you can access software on a subscription basis instead of a one-time purchase. All thanks to the Software as a Service membership.
Software as a service (SaaS) membership provides access to the software-based subscription. It offers a number of benefits for businesses. For instance, enhanced customer insights, recurring revenue, or decreased piracy.
That’s not it.
Consumers also find this business model beneficial in many ways. They can enjoy continuous updates and regular support. Moreover, they get the ability to pay for the installments offered monthly.
The marked growth of the SaaS market also describes the high potential for this membership business. The market size was USD 314.54 billion in 2023 and accounted for USD 358.33 billion in 2024.
You can offer a number of pricing options with this membership business. Like free trials, tiered plans, or discounts for annual.
Examples of software as a service (SaaS) membership platforms
Salesforce: It offers a comprehensive CRM or customer relationship management platform.
It can help your business to manage the relationship with your customers and the selling process.
Dropbox: It is another cloud storage-based platform. The platform offers comprehensive features for file sharing and collaboration.
6. Healthcare and Telemedicine Memberships
Here also, the healthcare and telemedicine membership offers access to medical services on a subscription basis.
If your target audience is looking for regular health support without even the hassle of a person visiting, this membership business can be a perfect choice for you.
As a membership site business model, the healthcare and telemedicine membership can offer you more than a number of benefits.
Your customers have access to a comprehensive range of health services. Like remote consultation and telemedicine.
Examples of healthcare and telemedicine membership platforms:
Teledoc Health: It is the leading company in offering telemedicine services. Mental health support, virtual doctor visits, and chronic care management are just a few of the comprehensive Teledoc health services.
Parsley Health: Parsley offers holistic memberships in medical care. The company combines primary care with personalized plans for wellness.
7. Community and Networking Memberships
You know building community and networking is likely to be a must for professional and personal development.
And here the community and networking memberships focus on enhancing the connections between the same-minded people. That’s also true for professional and business goals.
This membership offers the opportunity to exchange knowledge and support each other. You can bring these benefits to the bottom line of your business, considering it a membership business model.
Then what’s the best thing about community and networking memberships?
The communities can be only online. But they can also get together professionally to share experiences.
Moreover, it can also be limited to specific industries strictly. You can bring together professionals for events like webinars or conferences.
Community and networking memberships help to connect each other in their specific field. More importantly, it makes it easier to learn and grow together!
Examples of community and networking membership platforms:
LinkedIn Premium: It offers enhanced features of networking. Just a few of those are advanced search options and access to unique job postings.
Meetup Pro: You can organize and manage professionals or similar-minded people easily with Meetup Pro. Ultimately, it enhanced connections and events.
8. Freemium Membership
Let’s come to the next membership business model that has high success potential: freemium membership. It offers basic services for free. But it includes the upgrade to the premium feature option.
The core selling point? This freemium membership attracts customers with its free, valuable service.
It encourages the customers to further upgrade to premium to get access to the additional features.
Here, basic features are available for free. But the advanced features come with a subscription.
This business model is common to the digital industry. For instance, content platforms, software applications, or online games.
True, the customers can test and use the service without any upfront investments. But still, it offers the revenue stream via paid memberships. The freemium memberships effectively drive user acquisition.
Moreover, it provides a pathway for converting free customers into paying ones.
However, the business model has its share of challenges. Like maintaining revenue and profitability.
Examples of premium membership platforms:
Slack: It is mainly a communication tool. Slack offers a free version with a limited number of features.
But you can have unlimited access to messages and advanced administration tools by paying for a membership.
Spotify: The freemium model of Spotify offers free access to music videos with ads. You can upgrade to a paid subscription for advanced features.
Like enhanced sound quality, removing ads, and downloading music videos to listen offline.
9. Dripped Content Membership
What is the dripped content membership model actually? It refers to a strategy where it releases content to its members over a predominated schedule.
The dripped content membership model releases the new content gradually instead of one at a time.
The approach keeps your members engaged for a long time. That’s because the members come back regularly to get access to new content.
The dripped content model has high market potential as it increases customer engagement. Moreover, the model also offers increased retention and perceived value.
Generally, online courses and learning platforms use the dripped content membership. Here you can keep the lesson and modules in structured form and release them sequentially.
Thus, you can guide the progress of the learners. The dripped content model indeed can be a successful business model if you implement it thoughtfully.
Membership Model Examples of the Dripped Content
Here are some membership model examples of drip content:
MasterClass: It is an online educational platform that releases new course content over time.
The students can also get access to new educational videos almost every week. It ensures that the students remain engaged for a long time with the platform.
Kajabi: It is also a famous platform supporting the dripped content. You can start selling digital products, courses, memberships, and so on. Kajabi allows the creator to release their courses in weeks or months.
10. Accountability Membership
Accountability membership is for those who want to get rid of the habit of doing something or are required to be accountable. Also for those who just need a little push to be on track with goals.
The members can find different benefits in this membership-based business model. For instance, classes that require specific time meetings. Moreover, it can be an online program where the members have to log their progress each day.
Moreover, apps or something like that can also be there for this kind of membership site.
There are different types of models that offer accountability. The membership model really works well for the groups or also for the individual ones.
The key to this model is that the members can get personal connections. Plus, get encouragement to move ahead and achieve their goals.
Examples of accountability membership platforms:
Habitica: It is a free habit and productivity app. The app treats your life like a game and helps you to achieve your goals.
Moreover, you can get rewards when you complete the tasks or maintain good habits.
Focusmate: It offers coworking sessions online. Generally, the sessions are 25, 50, and 75 minutes to get anything done. Here, the users can work with each other to stay accountable.
Questions to Ask Yourself Before You Start Your Membership Site Business
Of course, the best membership business models are really good to think about. But the catch is here! Where do you actually start your business? How will you choose the right business model for you?
Well, there are some factors that can influence your decision. For instance,
Who is your target market?
First of all, you need to understand who your target market is. What are its needs, preferences, and purchasing tendencies?
Moreover, you need to establish your target market before you start. It’s a half-battle!
That being said, you have to make sure you are in high demand in the market so that you can grow as time passes.
Does your site/product/service already exist?
Search yourself for this question and assess the answer. Research the competition in the market.
If the business you’re thinking to start already exists, think about how you can make a difference.
What is that which can make your business stand out? Even a little thing, for instance, ensuring customer engagement, can highlight your business in the market. It’s a good point to ensure success.
How much time do you have to dedicate each week?
A membership business will, of course, not run by itself. It needs dedication to run a successful one.
You should have enough time to dedicate to your business every week. That’s so to keep your members engaged.
So choose a business model accordingly where you can invest your time and dedication equally.
What’s your price point?
It is also a wise idea to have a general sense of what the price point of your service and product is. What are the other company's charges for the same service?
Moreover, you should assess how much your customers are willing to pay. Charging too high or too low can impact your business’s perception.
Make sure what you are charging is worthwhile for what you are offering and what your customers are getting.
Plus, you have to be able to adapt those price points when your business actually starts to grow.
How are you planning to provide value on a regular basis?
In your membership business, ensuring to keep your members engaged is a must for long-term success.
So, plan beforehand how you are going to add new content and resources regularly. It is the consistency in the membership business that can provide value. Moreover, it can keep your members satisfied and subscribed.
What It Takes to Be Successful With a Membership Business?
Now let’s say you’ve chosen the best membership model for you. Of course, your ultimate goal will be to make it a success.
And all it takes to make your customer successful and happy. Let’s check out some key points below.
1. Member retention should be your first priority
It is not just like those businesses where you sell one-time products; some will struggle with it or may end up returning it.
In those businesses, business will run just fine as long as it keeps selling new products. It actually does not matter how many customers are using it.
But, to be frank, that’s not the case with the membership business. Here, membership retention is a really big deal.
If you lose too many members in this business, the profits will be markedly low regardless of how many new ones are coming in front.
2. Know your audience and what they actually need
So, to be successful in the membership business, you have to make sure your members stick around.
And it takes to provide them with a good enough reason to stay and sell; only once will not be enough.
That means you have to offer your members fresh content and support them on a long-term basis.
In a word, you have to make a real relationship with your members. So, make sure you are interacting and engaging with them consistently.
3. Have a plan for your business as you grow
When you run a business with a good model, chances are that your business will grow. We know that’s the ultimate goal, though; you will also need a plan now.
You have to make sure that you incorporate the new members without even overlooking your old members.
Moreover, you should also ensure your content is never lost on your website. You know a big part of your business success depends on the strategies of content organization and access.
What even matters? Right?
For example, suppose you held a seminar every month for your customers. After a year, there will be 12 seminars.
True, it’ll not feel too bad in the first few years. But after some, you'll struggle to find the content to help your customers try that specific one they’re looking for.
4. Adapt to needs if and when they shift
You have a membership-based business model for people. So, your membership won’t look the same over time.
Members and their needs tend to grow and, moreover, shift over time. It means clearly that your business also needs to grow and shift as the years pass.
If you still have the same type of content and courses as in the first years, even after 4 to 5 years, that’ll be a real problem for your business.
So you should adapt to the needs of people and shift accordingly. Never be afraid to ask your members their requirements and be flexible with your strategies.
The Challenges of Using a Membership Model
The membership site software business model has its fair share of challenges. In this section, we are going to discuss some of the most common challenges of this membership business model.
Maintaining strong connection
The membership business model has the ability to generate a sense of belonging among the members.
But it will be a real challenge for you to keep this sense of connection and participation alive.
You will need constant effort for this, especially online. You need to provide ways for your members to enhance engagement and keep them interacting with one another.
Meeting the increasing member expectations
In the membership business, your recurring payment members tend to expect to get value and satisfaction from their membership.
That is why your business must have to be focused to meet expectations. You need to understand what your members exactly need and prefer.
In this regard, the feedback of the members can play a very crucial role in getting to the members.
Then you will be able to deliver the services that are relevant and especially customized for your members.
Growing membership when there is an economic downturn
As you may also know, the membership business model runs on the ability of its members and their willingness to pay.
It is seen that the member tends to show more financial difficulty in covering these charges in the economic downturn.
For this reason, companies need to come up with strategic plans to attract new members. Also, don’t forget to keep the ones that you already have.
In this regard, you can offer promotions, discounts, and flexible payment options to overcome this challenge.
Enhancing member engagement to avoid churn.
Members' loss for the business is called member churn. In simple words, it is the rate at which your member starts participating in the community or cancels their memberships.
It is one of the main causes for which the business will suffer in income and reputation. To minimize this challenge, you should always be cautious.
You should take effective strategies to keep your members actively engaged. Provide them with value and benefits consistently.
Review through their feedback and address any issues accordingly. It’ll all be effective in reducing member churn.
Frequently Asked Questions [FAQs]
Which business model is most successful?
Which business model is most successful actually depends on the demands of the market. However, it has been proven that SaaS and online learning platforms have been the most successful recently. That’s because these platforms have scalability and recurrent revenue.
Which business model is best for a startup?
If you are thinking of starting your business, you should think about your product or service, target audience, or market. Depending on it, you can decide which one will be best for you. However, subscription box services or freemium models can be worth considering.
What is the fastest-growing business model in the world?
It is widely considered that the fastest-growing model is artificial intelligence. Moreover, the application of this model is also rapidly expanding in many industries. For instance, healthcare, transportation, or finance.
Which business is most profitable in the future?
It is predicted that renewable energy and the healthcare sector are going to make the most profit in 2030. According to Forbes, artificial intelligence, biotechnology, or e-commerce services will be the most profitable businesses in the future.
Conclusion
Let’s wrap up the whole discussion. The right membership business model can open the path to profits and success. So, more importantly, you should be careful when choosing your membership site business model. If you do, success and profits soon follow.
Understand your target audience and adapt their requirements to have a successful membership business. When your business starts to grow, make sure that your new members and also the old members feel valued.
In a word, all it needs is careful planning and dedication to be successful within the membership business. It does not matter at all whichever the membership model is!
