I thought I was so smart.
I was listening to a mentor of mine the other day. We're both on a team together and there was a question going around to everyone: “If you were handed $100 million today, what would you do?” It was just a simple exercise in thinking without constraints.
Anyway, I thought I was slick.
I said, “I'd invest it and live off the interest”. A pretty good answer, I thought. But, my mentor was up right after me and as soon as he gave his answer, I knew he was right. It was one of those “duh” moments. Anyway, he followed on from my answer and said:
“Yeah, I'd invest it, but I'd invest it in MY business.”
Forehead slap. “Duh!”
I know this. The best place to invest, recession or no, is in yourself. Something YOU have control over and input into. Instead of passively dumping it into a mutual fund or stock that you probably won't watch all that close and have no control over.
Your returns will almost always be better.
Because you're truly “invested”.
Not that stocks and mutual funds aren't a good way to diversify, but if you're an online business owner wondering what you should do as we potentially head for another recession… my mentor's advice is as apt as ever.
Invest in yourself.
Of course, how you do that matters, too.
That's one of the reasons we got into the membership game over 13 years ago. It's why we run a technology company built around memberships. It's why we implore online business owners to add membership into their revenue mix.
It's a game-changer.
It alleviates so much of the stress that goes along with running an online business. With most business models, you're starting from scratch each month. If you sell online courses, for example, you start back at 0 courses sold each month. And, if you want to hit your goals, you have sell all those units, again, to new customers.
But, with membership, you don't start at zero.
Yes, people have to renew… and some won't, but even if you only have $100 in recurring revenue from your membership, that's better than zero. Plus, you're not only selling new customers. Of course, you want to add new members and grow your bottom line, but most of your income comes from renewals.
That's existing members simply keeping their subscription.
You've heard the stat, right? It's 6-7 harder to sell a new customer than it is to sell a repeat one. Membership takes that idea to the max. And, with time, you can grow that “floor” of income from $100 to $500, $1000, $5,000 and beyond.
In any case, I'm painfully biased because I work at a company that sells membership software, but it's like I said… there's a reason we created the software we did. There's a reason we're in the business we're in. We all genuinely believe in the power of membership because we've watched it change people's lives time and again.
But, up to you.
Something to keep in mind as you navigate some potential future turbulence.
With membership especially, the sooner you get started, the better.
And, of course, if you decide to add membership to your online business, give our membership software, WishList Member, a look. It helps you turn a WordPress website into a full-featured membership site so you can start earning that recurring revenue that'll give you peace of mind — no matter the economy.
To your success!