January 21, 2018, 08:54:18 AM

Author Topic: Could this work?  (Read 1721 times)

compostjunkie

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Could this work?
« on: February 03, 2012, 04:40:33 PM »
Hey guys,

Could this style of a membership program work?

I run a compost-related website and my target audience is mainly backyard gardeners, urban farmers, farmers, etc. I have been chewing on the idea of an annual membership-based revenue stream for my business and I think I may have come up with something. I'd love to hear your thoughts on it...

Currently, I am an affiliate to, and have drop-shipping relationships, with a variety of compost/gardening related businesses. For instance, I have a drop-shipping relationship with one of the biggest composting worm suppliers in the States. I resell a pound of his worms for $23, but he wholesales it to me for approx. $16. An affiliate I work with gives me a commission of 10% on all of my sales of their composting products. I resell an ebook for a gentleman for $30, but he wholesales it to me for $15. Now, here's my idea...

I'd like to create a membership program for my site in which I charge approx. $50/year, but instead of me reselling these products above wholesale prices or with my commission "in", I'd like to give all of my members the opportunity to buy these products at my wholesale prices. So now my members get worms for $16, 10% off all compost products from the affiliate mentioned above, and a kick-ass e-book for $15. It's really just a different version of what Jack does with the survival podcast, however, you don't have to go get sponsors.

The upside is that it creates a win-win-win. The members get great discounts on a tonne of peer-reviewed products that they're already buying, the original seller increases their sales, and I now have a re-occurring revenue stream via annual membership.

Maybe you're asking, "How would the members get their monetary discounts?" I was thinking I could track all user purchases along with their associated discounts and then send them a quarterly check via paypal, etc.

What do you think about this model? Please help me poke holes in it or add to it and help bring it to fruition. 

Hopefully, I am on to something. Thanks in advance to all the 100Kers for all of your input.

And most of all, thanks to Jack! You're a mentor to me, even though we've never met.

Compost Junkie Dave

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j4mo

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Re: Could this work?
« Reply #1 on: February 03, 2012, 04:57:56 PM »
Like you pointed out, you would need to give them BACK the money. I really don't like that idea, personally. For one, it reveals the vendor's wholesale price which I don't like. Second, it's confusing the customer and third it makes it very odd for them to pay $50 to get it back only if they buy enough discounted products get get it back. If you want to give them discounts with those vendors it should take place at checkout, which will require those vendors to adjust their infrastructure to offer the lower prices via a special link or coupon code. I would work with them to see if they can offer discounts another way. You could also consider going to their competitors or other vendors in the market to see if they can offer something of value. A lot of ebook authors and vendors have freebies and coupon codes that I bet they would give away. Don't be afraid to 'copy' what Jack's doing. It's a proven model used in a lot of places.

I think what you want to do is great, it's just how you want to do it. I'm not sure if you have to do it that way, but it'd be much better if you could avoid it and do it a more standard way.

Josh

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Re: Could this work?
« Reply #2 on: February 03, 2012, 05:03:32 PM »
That's a lot of work.

Maybe you should just talk to those people and see if you can get coupon codes or something to put in your member area.

compostjunkie

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Re: Could this work?
« Reply #3 on: February 03, 2012, 05:10:56 PM »
Thanks for the quick replies guys.

I definitely hear ya. It is a bit convoluted isn't it? I will talk directly to my suppliers and see if we can arrange something more in line with a coupon, discount code, etc.

Thanks again.

Dave

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Helping you grow incredible food by nurturing your soil.

JakeR

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Re: Could this work?
« Reply #4 on: February 17, 2012, 04:08:45 PM »
You say you can get them wholesale yourself, why not set up your own system where if someone is a member they get it at cost when ordering through you, else they pay the markup.

As for the membership thing I would suggest offering just a little more, like write your own small guide to composting and maybe a members only area of your forums... Just a thought.
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theshooter

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Re: Could this work?
« Reply #5 on: September 02, 2012, 12:45:39 AM »
I will talk directly to my suppliers and see if we can arrange something more in line with a coupon, discount code, etc.

So, what did you end up doing? curious of your decision and how it's working...

-- Jim