For some, the term "Autoship" is unfamiliar. For others, it’s a dirty word. And for people involved in a side hustle or marketing products through a work-from-home business, it’s often seen as a nightmare.
Let’s face it: most of us join an affiliate or network marketing company for one main reason — to create an additional stream of income.
An Example of Autoship in Network Marketing
Take, for instance, a network marketing company that sells products like weight loss supplements, skin care, or health and nutrition items.
Typically, the company will have a "flagship product" that its entire marketing campaign is built around, often claiming this formulation is unique and unavailable anywhere else. The remaining products in the lineup are designed to complement the flagship product and can be sold individually or as part of a bundle.
Alternatively, you might have a company that sells makeup, jewelry, or everyday household and cleaning products. The concept is the same.
As a distributor, you’re required to meet a minimum monthly sales quota. Your customers may receive a small discount if they agree to automatic monthly purchases, which is what we call "Autoship."
The common factor across these companies? Their flagship products come with a flagship price tag. Why? Because the product needs to generate enough revenue to pay commissions — not just for one sales rep but for multiple levels of them. That’s why it’s called Multi-Level Marketing (MLM).
Autoship is what creates the residual income promised to distributors. Residual income is the Holy Grail of any MLM business. However, let’s be real — people typically stay on autoship for an average of just three months before they quit. Then, you’re back to square one, hunting for new recruits.
In today's economy, one unexpected bill, an illness, or the realization that they need to cut expenses can prompt people to cancel their monthly autoship as their first cost-cutting measure.
NOTE: This video was used in a former Ad Campaign - The button has been removed
Autoship vs. Membership
In contrast, membership-based models are gaining ground year after year. Consumers associate memberships with value and security. They are willing to pay good money for memberships because they see long-term benefits.
For instance, with a $15/month Amazon Prime membership, customers can place orders of any size and receive free next-day delivery. A Sam’s Club membership allows you to shop as often or as little as you like, without worrying about monthly quotas or autoship obligations.
The fastest-growing segment in the home-based business industry is Affiliate Marketing and Network Marketing combined with a membership model. This trend isn’t going away anytime soon. People will cancel their autoship, but they are far less likely to cancel their membership.
Popular Membership Programs
Here’s a list of trending membership businesses. How many are you part of?
Shopping Memberships
- Warehouse Clubs:
- Sam’s Club: Bulk groceries, home goods, electronics, etc.
- Costco: Similar to Sam’s Club, with exclusive services.
- BJ’s Wholesale Club: Bulk items, gasoline, exclusive discounts.
- Online Retail:
- Amazon Prime: Free shipping, Prime Video, music, exclusive deals.
- Walmart+: Free delivery, discounts on fuel, exclusive savings.
- Warehouse Clubs:
Entertainment Memberships
- Streaming Services:
- Netflix: TV shows, movies, original programming.
- Max: Warner Bros. films, series, exclusive content.
- Disney+: Disney, Pixar, Marvel, Star Wars, National Geographic content.
- Music Streaming:
- Spotify Premium: Ad-free music, podcasts, offline playback.
- Apple Music: Ad-free music, curated playlists, radio shows.
- SiriusXM: Extensive library of songs, proprietary music channels.
- Streaming Services:
Household & Personal Protection Memberships
- Vehicle/Travel Assistance:
- AAA: Roadside assistance, travel discounts, insurance.
- Good Sam Roadside Assistance: RV-specific roadside services.
- OnStar: Vehicle security, roadside assistance, emergency services.
- Identity Theft Protection:
- LifeLock: Identity theft monitoring, recovery services.
- Experian IdentityWorks: Credit monitoring, identity protection.
- IDShield: Comprehensive identity theft monitoring, protection.
- Security Software:
- AVG: Antivirus, ransomware protection, secure browsing.
- Norton 360: Antivirus, VPN, password manager, identity theft protection.
- McAfee Total Protection: Antivirus, firewall, identity protection.
- Home Services:
- HomeServe: Home repair assistance for appliances, plumbing, etc.
- American Home Shield: Home warranty services for appliances, systems.
- Vehicle/Travel Assistance:
Health & Wellness Memberships
- Fitness Centers & Meditation:
- Planet Fitness: Affordable gym memberships with nationwide access.
- LA Fitness: Full-service gyms, personal training, group classes.
- Calm: Meditation, relaxation, sleep aids.
- Fitness Centers & Meditation:
Travel & Hospitality Memberships
- Airline Loyalty Programs:
- Delta SkyMiles: Earn miles for flights, redeem for travel.
- United MileagePlus: Use miles for flights, upgrades, rewards.
- American Airlines AAdvantage: Frequent flyer miles for flights, hotels, car rentals.
- Hotel Loyalty Programs:
- Marriott Bonvoy: Points for stays, redeem for free nights, upgrades.
- Hilton Honors: Points for stays, exclusive discounts.
- World of Hyatt: Points for hotel stays, luxury experiences.
- Vacation Clubs:
- Disney Vacation Club: Points-based vacation ownership.
- Hilton Grand Vacations: Flexible timeshare properties worldwide.
- Marriott Vacation Club: Timeshare membership for Marriott resorts.
- Airline Loyalty Programs:
Prepared Food / Pet Food
- Food & Beverage:
- Blue Apron: Meal kits with pre-portioned ingredients.
- HelloFresh: Easy-to-follow meal kits.
- Pet Products:
- Chewy Autoship: Scheduled pet food, treats, product deliveries.
- Food & Beverage: