Skip to content

Earning predictable profits through memberships with Stu McLaren

Are you curious about starting your own membership and creating recurring revenue? Stu McLaren, membership expert and cofounder of Membership IO, joins us to share what 20+ years of entrepreneurship taught him, along with how he’s pivoted over the years as technology and business shifted.

We also discuss his latest book, Predictable Profits, which breaks down how to create recurring revenue with a membership. This conversation is so inspiring and will have you seriously considering starting your own membership.

The Unbreakable Business podcast is powered by HoneyBook, the all-in-one platform for anyone with clients. Book clients, manage projects, get paid faster, and have business flow your way with HoneyBook. Use the code PODCAST to get 20% off your first year as a new member.

Follow the Independent Business podcast

Stu’s 20-year entrepreneurial journey: adapting to survive and thrive

Stu is in his 23rd year of business, and he’s seen the entrepreneurial community go through several evolutions in that time. His secret is adapting to each of the changes. 

The reason he’s survived and thrived for this long is because he recognizes the big moments of change and hasn’t clung to the old ways of doing things. He’s had the courage and humility to experiment and try new things to get to the next level in his business. 

Stu also pays attention to what his membership students are doing and is willing to learn from people at different points in their business journey. Instead of letting his ego get in the way, he keeps his finger on the pulse and looks for new opportunities to learn.

How Stu became ‘the membership guy’

Stu didn’t set out to be ‘the membership guy’ when he started his business. He was running a service-based business that was successful and profitable, but his time was not his own. He was up early and worked late to deliver for his clients. When he and his wife were considering starting a family, Stu realized that he couldn’t keep working this way. 

A friend suggested that he start a membership where he teaches people how to do what he does for his clients. He loved the idea, but this was back in 2008, so he didn’t know how the technology would work.

Stu and his friend decided to create their own membership solution and worked with a developer to bring it to life. The first version of his program was called Wishlist Member, and it went on to become the number-one membership platform for WordPress. 

Before he knew it, they were powering tens of thousands of online communities and memberships. Over time, Stu started to understand what was working in those memberships and what wasn’t. 

Stu now educates business owners on how to create successful memberships, and he’s co-founded another membership program called Membership IO. He also recently published a book, Predictable Profits, that details everything he knows about running a membership.

The role of intuition in business

There’s no clear-cut path to success. Instead, you have to follow your gut and listen to your intuition. You may not ever have absolute certainty about a major business decision, so you have to trust yourself when you know it’s time to make a change. 

How business owners are struggling with memberships

  1. Waiting too long to launch a membership
  2. Providing way too much content and overwhelming your members

Creating membership content doesn’t have to feel overwhelming

People assume that memberships are a lot of work because you have to constantly create content for them. However, it doesn’t need to be that hard. You can create an effective content strategy for your membership just like you do with your social media. For example, you can batch-record videos and create content for an entire year in a few days. 

How to launch a membership in 2025 without creating anything first

The first thing is to realize there are different types of memberships and decide which one is right for your business. 

The four types of memberships are:

  • Product-based membership (aka coffee of the month club)
  • Service-based membership (aka massage membership)
  • Information or knowledge-based membership (example: Autism Little Learners by Tara Phillips)
  • Community-based membership (bringing people together over niche interests)

The second thing you need to do is make sure you’ve got an audience of at least 200 people. From there you can move forward with a founding member launch, which is when you invite people to join your membership before you’ve created anything.

Your founding member invitation message can be sent through social media, email, podcast, or any other way you communicate with your audience. It should include the idea for the membership, the vision, an invitation to become a founding member, and a call to action. 

Founding members get a lower fee and are locked into that fee for life. You’ll also ask them for feedback to make the membership better as it grows. 

After people tell you they’re interested, you need to follow up with them. This is where you send them a payment link and secure them as a member.

If you follow these steps and no one joins as a founding member, simply take it as a learning experience. You haven’t lost time creating anything yet, so you can move forward, rework your messaging, and try again. 

Achieving financial freedom with a membership

In Stu’s book, Predictable Profits, he teaches business owners everything he knows about memberships so that they can achieve financial freedom. With the cost of living on the rise and salaries not keeping up, having predictable income from a membership each month is life-changing.

Creating a recurring stream of income gives you the freedom to experiment in your business. You can try new things knowing that you have the stability of your membership supporting you.  

The future of entrepreneurship 

Entrepreneurship is changing rapidly before our eyes. Stu is embracing AI, and specifically AI agents, to help him get more done. With his workload, he can focus on “human” activities like connecting with his audience.

Stu also sees the human touch as becoming more important for business owners. One example of how to incorporate this into your thank you pages–he’s a big fan of creating thank you videos. 

What does having an unbreakable business mean to you?

Stu believes that an unbreakable business creates time for you to prioritize what’s important to you. Along with time freedom, it allows you to give back and make a difference in the world. 

Important sections of the conversation

  • [2:36] Stu’s 20-year entrepreneurial journey
  • [8:35] How Stu became ‘the membership guy’
  • [13:00] The role of intuition in business
  • [19:00] How business owners are struggling with memberships
  • [22:23] Creating membership content doesn’t have to feel overwhelming
  • [26:28] How to launch a membership in 2025 without creating anything first
  • [44:04] Achieving financial freedom with a membership
  • [48:38] The future of entrepreneurship 
  • [55:12] What does having an unbreakable business mean to you?

Resources mentioned

Connect with the guest

Blog tags:

Share to:

Related posts