The Best Place to Invest during a recession - WordPress Membership plugin - Membership Sites

Aug 19, 2022

The Best Place to Invest in a downturn

I thought I was smart.

I was listening to a mentor of mine the other day. We're both on a team together and there was a conversation going around to everyone: "If you were handed $100 million dollars today What would you do?" It was just an easy exercise of thinking free of any constraints.

Well, I was thinking I was slick.

I said, "I'd invest it and earn a living from the interest". It was a pretty decent response, I thought. My mentor came in right behind me, and when the answer was given, I knew that he was correct. This was one of those "duh" moments. Anyway, he followed on from my answer and said:

"Yeah, I'd invest it in my business, but I'd put it in MY business."

Forehead slap. "Duh!"

I'm sure of it. The best place to invest, recession or no, is within your own personal finances. It's something you control and can input into. Instead of just passively throwing it into a mutual fund or stock that you probably don't keep track of and have no control over.

Your return will always be better.

Since you're "invested".

There's no reason to think that stocks or mutual funds don't make a great option to diversify your portfolio however when you're an online company proprietor wondering what you can be doing as we could head towards another downturn... My advisor's suggestions are as sound as ever.

Put money into yourself.

Of course, how you do that matters, too.

That's one of the reasons we entered the world of membership over thirteen years in the past. This is why we operate the technology business based around memberships. We encourage entrepreneurs to incorporate an element of membership to their business's revenue.

It's an important game changer.

It alleviates so much of the anxiety that comes with running an online business. For most models of business, you're starting from scratch each month. If you offer online classes, for example starting with a bare 0 course sold every month. And, if you want to achieve your objectives, you have sell all those units, again, to new customers.

With membership, you don't start at the beginning with nothing.

Sure, members must renew... but some will not, but even if you have the equivalent of $100 per month in monthly earnings from your membership that's better than zero. Additionally, you'ren't just selling new customers. Of course, you want to increase your membership and increase the value of your business, but most of your revenue comes from renewals.

Existing members are simply maintaining their current subscription.

You've heard the stat, right? It's 7 times harder to acquire an individual customer than to convert an existing one. Membership takes that idea up to the limit. And, with time it is possible to increase that "floor" of income from $50 to $500 or $1000 to $5,000, and even more.

However I'm biased due to the fact that I'm employed by a firm that sells membership software, however, as I've said... there's reasons behind our software. There's a reason we're working in the field we're in. We're all in agreement about the power of membership because we've witnessed it alter people's lives time and again.

It's up to you.

Something to keep in mind in the event of next turbulent times.

When it comes to membership, in particular when you join, the earlier you start the more benefit you will get.

To your success!

John Morris

Director of Sales
Member