Hey, Mike Agugliaro, CEO Warrior. Bringing you, what? Another episode of CEO Warrior TV. Today, I want to talk about the subject of just membership. Membership plans, right, a lot of companies and it doesn't matter if you have a jewelry store or at Sam's Clubs, or BJ's, or anything, right? A lot of people have membership plans, but here is something I've seen notoriously or notorious in membership plans is what? It's they don't have enough value in it and they're trying to make money from the membership plan.
The money is not really from the membership plan. Now maybe Costco can have a membership plan where that's where they're producing money because they have a million people on it. Well, most of us don't have a million people on a membership plan, so what do we need to do? We need to have massive value for our membership plan. It has to make so much sense that everybody wants to do it, so how do you do that?
Well, I want you to just think. First, is it simple? At one time I had bronze and silver, and gold, and platinum, and triple platinum, and this, and they had this, and they had that, and it was like holy crap. The people couldn't figure out. The guys were confused about it, the customers didn't understand all the different pieces, the calculations were difficult and it was a pain in the ass, right? It was too much.
One, look at your membership plan if you have one. If you don't have one, well, it's going to take more than this video to get a strategy, but I'm going to tell you. Having a membership plan is like golden handcuffs on somebody. It means somebody chose to be loyal to you.
One, is it simple? How do you know? Well, you could do a little focus group. Bring in ten strangers. It could be ten strangers from any industry, doesn't even need to be somebody that fits you, and present the plan to them, and then have them give you- Yeah, you love this idea, right, the focus group? Have them tell you what they love, what they hate, what they would change. They'll give you magic and you could do that for a focus group.
After that, you have to ask yourself, “What makes this plan a no-brainer that everybody has to say yes to it?” Now, making it $29 doesn't make it a no-brainer. If price was the big indicator, well, when you go to the dollar store, do you go in there and go, “Oh, man. I bet there's high quality products in the dollar store.” No. You're like, “A dollar. It's probably shit,” right? It's not always about the price. It's about the price and the value. You got to have massive value and if there's massive value and it makes sense.
The other thing is so many people out there today they're like, “Oh, well, I needed to make my membership plan so different than this other company,” like you're both going to the same customer. Do you know the chances? Now first off, even to get to the point about the membership plan, you would have to go to the same customer, present the same types of thing. It's crazy thinking. It's so funny.
It's like when in this industry, in the service industry when people are like, “Oh, I got so and so's price, like, ” I'm like, “Yeah, who gives a crap?” What are you going to do with it, Change your prices and your strategy? What's the chances you'll even end up on the other customer? It's always going to be about they're buying from the person, they're buying from the perceived value, they're buying from the reputation and the brand, the brand message that the company is doing.
It's so crazy and it's really not your fault. I get it. It's just you don't know any better. What should you do? Get your membership plan, do the focus group, ask if it's simplistic, and make sure massive, massive value. The other thing is, look, if you don't change, you can't change. If you don't change it, you don't know what will happen. If you decide to make changes, don't jump in.
I'm going to tell you the entrepreneur's problem here. Entrepreneurs including myself, crazy entrepreneurs, we see it, our action, right? We're like, “Hell, yeah.” We're like, wooooooo. We're like, “Shit, two inches of water,” right? You don't jump all in. You build your prototype and your plan, you give it to one or two people, you implement it, you bring it in, you get your reconnaissance, you get your information, it starts working, you get feedback value, trickle it to two more, two more, then you could give it to the whole company.
Don't jump in and crash into two inches of water. All right, I'm Mike Agugliaro wishing you a better and great day, today and every day. What? I want help you get what? Massive wealth, tons of freedom, market domination. Boom!
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