Membership (or "subscription") websites are all the rage right now. Look around and you'll see everyone starting their own club where members pay a monthly fee in exchange for information, coaching, teleseminars, community forums and other support.

The temptation to jump on the membership band wagon is strong, but will it work for your business?

Obviously, it depends. It depends on the size of your list and how closely connected your readers are to you. It also depends on your ability to create content, whether you create it from scratch or by tapping into the expertise of others.

It also depends on your ability to receive and accept feedback, then quickly make adjustments so that your membership clients are getting what they want.

I personally love the membership model and credit it with two things that I hold dear—money and meaning. Let me explain...

Switching to a membership model skyrocketed my business from the low six-figures to mid and upper six-figures in just eighteen months. This alone is worth celebrating (and I do!) but the income alone is only part of the success of this model.

Yes, the income is great but the meaning part is quite honestly, priceless. I love the membership model because it fulfills my need to "spread the love", meaning, to deliver great information and create personal, heart-strong connections with my client members.

Running the typical "1-on-1" model would only allow me to do that with maybe twenty or so clients. My membership model allows me to build the kind of quality relationship and create connection with over one hundred people.

Today I'm going to share with you four important tips to help you avoid some of the mistakes I made when I started my first membership site, plus help you decide if starting a membership site is truly one of your high payoff activities.

Decide how your membership program fits into your business vision. Starting a membership site is a long-term commitment. Think of it as getting married in contrast to dabbling at dating. When I decided that membership programs were a perfect fit for my vision of multiple streams of income, and my values of regularly connecting with large groups of people, I knew I was ready to switch all of my business over to this new model. Boy, am I'm glad I did! I don't think I would be enjoying nearly the success I am now if I had gone into it with the idea of dabbling.

Start small to get the hang of it. I started with my basic membership site (the Success Circle Coaching Club) then a few months later launched my next two levels up (Brand Authenticity and my Platinum Inner Circle). I made certain that I was happy with how the Success Circle was running before I ventured on to launching the other levels. This is crucial because if you try to start too many clubs too soon you'll end up chasing your tail and creating confusion instead of income.

Make sure your membership club offers information that people want to buy. Starting a club without any members is like giving a party just for yourself. Deflating and disappointing. To avoid that from happening it's critical that you choose a point of focus for your club. Be sure you have rock-solid evidence telling you that people are willing to commit their credit card every month to your topic.Test your idea out with a survey, by reading magazines to see what topics are being covered multiple times and by asking your current clients.

Get your list in shape before you start your club. I often see people spend tons of time and money (plus their hopes and dreams) getting ready to launch their club, only to watch the idea fizzle like flat champagne. The reason why? Too small a field to harvest from. You need a minimum of 1,000 people on your list (2,000-3,000 is better) who are already used to hearing from you at least every other week, who have already proven they like buying stuff from you, and who are loyal followers of what you have to say.

Done right, you can estimate that 3% of your main list will sign up for your club and stay in it beyond the initial month. If you're list is too small right now then I recommend starting a coaching group or teleseminar series instead while you work on list building.

Get the right tools for the job. To successfully run your membership site you need a shopping cart with recurring order processing (KendallCart.com will link you to the most popular shopping cart system—1 Shopping Cart—available), community forum (also known as "bulletin board") software, and initial content in the form of audios, special reports, checklists, or articles. You'll also need a recording service (I love the one at KendallAudio.com), a great transcription company (I swear by the folks at TheAdminSource.com) plus an assistant to upload your mp3 files and transcript links each time you give a teleseminar.

My business plans include growing my current coaching clubs and launching several more over the next year. The beauty of the membership model is that when done well (like mine have proven to be) you can count on members staying loyal and connected to you for months, even years. The steady income that loyalty brings in, and the increasing fulfillment and gratitude you'll feel are priceless!