Lessons from "Predictable Profits" by Stu McLaren
Imagine trying to fill a bucket with water, but the bottom is riddled with holes. No matter how fast you pour, the water keeps draining away. That’s exactly how most businesses operate—constantly chasing new customers while their profits leak out the other end. But what if there was a way to seal those holes permanently, creating a steady, predictable flow of income that never runs dry? That’s where things get interesting.
For decades, businesses have been obsessed with the chase. Sell, close, move on. Rinse and repeat. But here’s the shocking truth: the companies thriving today aren’t the ones hunting for new customers every month. They’re the ones who’ve cracked the code to keeping them. In Predictable Profits, Stu McLaren dismantles the age-old myth that business success is about getting more people through the door. Instead, he reveals a strategy so powerful, so counterintuitive, that it turns traditional sales models on their heads.
And yet, most entrepreneurs miss it entirely. They’re too busy grinding, too addicted to the adrenaline rush of the next sale to see the opportunity staring them in the face. Meanwhile, those who get it—those who master the art of membership and recurring revenue—quietly build empires while everyone else fights for scraps.
Think about it. Which is more valuable: a thousand one-time buyers who vanish after checkout, or a hundred loyal customers who keep coming back, month after month, year after year? The answer seems obvious, yet businesses everywhere still play the short game. They discount their prices, slash their margins, burn through ad budgets—all in pursuit of fleeting wins. But those wins don’t build wealth. They don’t create stability. They don’t protect you from the next market crash, the next algorithm change, the next disruption that could wipe out everything overnight.
But there’s another way. A smarter way. A way to build a business that doesn’t rely on endless hustle, one that grows stronger over time instead of more exhausting. And once you see how it works, you’ll never look at business the same way again.
Not all markets are created equal. Some are goldmines for recurring revenue, while others will leave you fighting for survival. The difference? Demand that never expires.
Think about the things people pay for over and over again—without hesitation. Fitness programs, business coaching, industry insights, hobby communities, skill-building platforms. These aren’t impulse buys; they’re ongoing needs, tied to deep-seated desires, problems, and aspirations. A membership model doesn’t work unless people crave continuous access, whether for knowledge, convenience, connection, or transformation.
Stu McLaren lays it out simply: if you want predictable profits, your market needs three things. First, an ongoing problem—something people must solve repeatedly. Weight loss isn’t a one-time fix. Financial literacy isn’t mastered overnight. Business owners never stop needing better strategies. The strongest membership models tap into struggles that never fully disappear.
Second, a strong sense of identity. Humans crave belonging. The best membership communities aren’t just about content—they're about connection. People don’t just join for information; they stay for the tribe. Whether it’s an exclusive mastermind, a professional network, or a niche interest group, successful memberships create a home for like-minded individuals.
Third, an endless well of value. If your business hinges on a single transaction, it’s a dead end for memberships. But if you can continuously deliver new insights, fresh tools, or evolving benefits, your customers will never outgrow you.
So, is your business membership-ready? If your audience has a recurring need, if they crave connection, and if you can keep delivering value that justifies staying subscribed, then the answer isn’t just yes—it’s inevitable.
Most people think selling a membership is about persuasion—about crafting the perfect pitch, hyping up the benefits, and convincing people to commit. But the truth? The most successful memberships don’t convince people to join. They make them feel like they belong before they ever sign up.
Think about it. When was the last time you felt pressured into a purchase versus when you naturally gravitated toward something because it just made sense for you? The best membership businesses don’t rely on aggressive marketing tactics. Instead, they pull people in by creating an environment where membership feels like the obvious next step.
The key is trust. If people don’t trust you, they won’t commit to recurring payments—no matter how great your offer is. But trust isn’t built through flashy promises or limited-time discounts. It’s built through value, consistency, and relationships. That’s why content-driven businesses dominate the membership space.
Before anyone subscribes, they need proof that what you offer is worth it. Give them a taste—whether it’s a free resource, an exclusive webinar, a mini-course, or a compelling newsletter. The goal isn’t just to impress them; it’s to show them what life looks like with your membership in it.
And then there’s the secret weapon: community. Humans are wired to follow social signals. When they see others engaging, benefiting, and sticking around, it lowers their hesitation. It’s why the best memberships have thriving online spaces, member testimonials, and stories that showcase transformation.
People don’t join memberships because they’re sold on a list of features. They join because they see something they want—a result, a connection, a change—and they believe you can get them there. That’s not marketing. That’s momentum. And once you create it, growth becomes effortless.
Scarcity is a powerful force. It drives urgency, creates desire, and fuels demand. But most businesses use it wrong. They throw up fake “limited-time offers,” slap countdown timers on their sales pages, and hope fear of missing out will push people over the edge. That might work once. Maybe twice. But people catch on.
The real power of scarcity isn’t in tricking people—it’s in creating true exclusivity. And when it comes to memberships, one of the most counterintuitive but effective strategies is closing the doors.
Stu McLaren argues that by limiting when people can join, you actually make your membership more desirable. It forces people to make a decision, rather than endlessly putting it off. When enrollment is always open, there’s no urgency. No reason to join now instead of later. And later often becomes never.
But there’s another reason why closing the doors boosts growth—it protects your community. A strong membership isn’t just about attracting new people; it’s about keeping the ones you already have engaged. When enrollment is constantly open, new members trickle in at random, making it harder to create a unified experience. But when everyone joins at the same time, they go through the journey together. They connect. They engage. They stick around.
It also shifts your focus. Instead of constantly selling, you can pour energy into making your membership better. That leads to happier members, higher retention, and stronger word-of-mouth marketing—because people talk about things that feel rare, valuable, and exclusive.
Think about the difference between an all-you-can-eat buffet and an invite-only dinner club. One is convenient, the other is an experience. And experience is what turns a membership from just another subscription into something people want to be part of.
Content is the lifeblood of any membership. But here’s the brutal truth: most memberships fail, not because they can’t attract members—but because they can’t keep them. And the reason? Stale, forgettable content that doesn’t make people need to stay.
Memberships aren’t just about delivering more content. They’re about delivering the right content—the kind that makes members feel like they’re constantly progressing, unlocking new value, and experiencing something they can’t get anywhere else.
Stu McLaren lays out a simple formula: Consistency + Engagement + Evolution.
Consistency is key. If people don’t know when to expect new content—or worse, if they feel like they’re paying for something that’s losing momentum—they’ll cancel. Your content schedule isn’t just a logistical detail. It’s a trust-building mechanism.
But consistency alone isn’t enough. Engagement turns passive consumers into loyal members. People don’t just want information. They want interaction. Q&A sessions, live calls, challenges, discussions—these aren’t just “extras.” They’re what make a membership feel alive. And when members participate rather than just consume, they stay.
Then there’s evolution—the part most people miss. If your membership feels like it’s on repeat, people will outgrow it. The best memberships adapt. They introduce fresh ideas, respond to feedback, and keep members feeling like there’s always something new to discover.
Think about the difference between a book and a membership. A book has an ending. A membership should feel endless. The moment your content stops moving forward, so do your members. But if you make it dynamic—if you keep delivering value that grows with them—leaving won’t even cross their minds.
Most businesses obsess over getting new customers. But the real money isn’t in acquisition—it’s in retention. The longer someone stays, the more valuable they become. And when it comes to memberships, the first 30 days determine everything.
Stu McLaren breaks it down: if you want to triple the lifetime value of a member, you don’t start six months down the road. You start the moment they join. Because the biggest danger isn’t that people won’t sign up—it’s that they’ll sign up and do nothing.
The solution? Three strategic moves in the first 30 days.
First: The Quick Win. People need instant gratification. The moment they enter your membership, they should feel like they’ve already gotten their money’s worth. That could be an easy-to-implement strategy, a powerful insight, or an immediate result. When people feel progress fast, they stay.
Second: The Community Hook. People don’t just stick around for content—they stay for connection. Your goal isn’t just to provide value; it’s to integrate them into the group. The best memberships don’t feel like products. They feel like belonging. And the faster someone interacts—whether in a discussion, a challenge, or a live event—the less likely they are to leave.
Third: The Momentum Builder. The biggest threat to retention? Overwhelm. If members feel lost, confused, or stuck, they’ll ghost you. That’s why the best memberships have a clear, structured journey. A roadmap. A path that makes members feel like they’re always moving forward. Because when people can see where they’re going, they don’t hit “cancel.”
Memberships fail when people forget why they joined. But if you give them quick wins, a strong sense of community, and a clear path forward, they won’t just stay—they’ll become superfans. And that? That’s how you build predictable profits.
So, what’s next? By now, you’ve seen how the membership model isn’t just another way to make money—it’s a fundamentally different way to build a business. One that doesn’t depend on constant selling. One that scales without burning you out. One that creates wealth instead of chasing it.
But knowledge without action is worthless. If you want predictable profits, you need a plan. So here’s your next move.
Step 1: Identify Your Market Fit.
Does your audience have a recurring problem? Do they crave a sense of belonging? Can you continuously deliver new value? If the answer isn’t an immediate “yes” to all three, refine your idea until it is.
Step 2: Start Attracting Members the Right Way.
Forget the hard sell. Instead, lead with value. Create content that solves problems. Offer free insights that build trust. Give people a taste of what your membership delivers—so by the time you open the doors, they already know they need it.
Step 3: Design Your Enrollment Strategy.
Are you keeping the doors open 24/7, or will you use closed enrollment for higher demand? The answer depends on your business, but don’t let laziness dictate your decision. Scarcity, when used correctly, can be a game-changer.
Step 4: Build Content That Keeps People Hooked.
A membership without engagement is a subscription waiting to be canceled. Keep your content consistent, interactive, and evolving—so members feel like they’re always moving forward, never standing still.
Step 5: Nail the First 30 Days.
Retention doesn’t happen by accident. The moment someone joins, give them a quick win. Pull them into the community. Show them a clear path forward. Because if they stay past the first month, they’re far more likely to stay for years.
This isn’t theory. This is the blueprint that’s been used by the most successful memberships in the world. And now? It’s yours. What you do with it is up to you.
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