How to Create an Online Community Business that’s Profitable?

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How to Create an Online Community Business that’s Profitable?
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Community Masters

Online communities have become powerful hubs for like-minded individuals to connect, share, and collaborate. These online communities are more than just social networks; they're hubs of shared interests, passions, and opportunities. And what if we told you that these communities aren't just spaces for connection and camaraderie, but they can also be lucrative businesses? Indeed.

However, creating a profitable online community business requires careful planning, dedication, and a clear understanding of your target audience. In this blog, we will guide you through the essential steps to build and monetize a successful online community.

1. Research

Let's dive into the very first and super important step in creating a profitable online community: finding your niche and understanding your future community members. This part is all about the research and soul-searching that sets the stage for everything else.

You can join different spaces on Quora based on your niche to analyze trends and your target audience.

Market Research: This means looking around the online landscape to spot groups of people who are passionate about something or dealing with common problems. Look for areas where you can see there's some activity but maybe not a place where folks can gather and chat about it.

Narrow It Down: Your job now is to narrow your focus. Don't aim to be everything for everyone. Instead of saying, "I want to target fitness enthusiasts," try something like "I want to bring together CrossFit enthusiasts who are also into plant-based diets."

Competitor Research: Check out what other online communities are doing in your chosen niche. Ask yourself:

  • What are they doing well? 
  • What could be better? 

This helps you figure out how you can stand out.

Meet Your People: Create audience personas - detailed profiles of your ideal community members. Dig deep into the problems your future community members face. Ask these questions:

  • What do they like? 
  • What problems do they have?
  • Where do they hang out on the internet? 
  • Which platforms are they using? 
  • What kinds of posts or content get them excited?  

Knowing these things helps you speak their language. The better you understand this, the better you can provide solutions and engaging content.

Dip Your Toes: Before going all in, try the waters. Join some existing online communities related to your niche. Engage in conversations, ask questions, and see what works and what doesn't. It's like a practice run.

Start with joining existing communities based on your niche.

Get Feedback: Talk to people who might be interested in your community idea. Ask them if they'd be into it, what they'd like to see, and what might hold them back from joining. This feedback can be pure gold in shaping your community concept.

Pro-tip: Keep all your research findings organized. A simple notebook or a digital document works wonders. You'll want to refer back to this treasure trove as you build your community.

2. Choose the Right Platform

Now that you've got your niche and audience all figured out, the next step is to pick the perfect platform to host your online community. Your choice here is crucial because it'll influence the kind of experience your members have and how you can monetize your community.

This is where online community-building platforms can help, providing you with the tools to set up your community. When selecting a platform, consider its features, ease of use, and how well it aligns with your community's goals.

Check out the ultimate guide to decide on a Community Platform!

Look for features like: 

Platform Features: When choosing a platform, look for features that support your community's objectives. For instance, if you plan to host discussions and share content, you'll need a platform with robust forum capabilities or content-sharing options. If your community thrives on real-time communication, opt for platforms with chat or messaging features.

User-Friendliness: Your platform should be user-friendly both for you and your community members. A complicated or clunky interface can deter users, so ensure that the chosen platform is intuitive and easy to navigate.

Scalability: Consider the potential growth of your community. Will the platform accommodate a growing number of members and discussions? Scalability is essential to ensure your community can expand without technical limitations.

Mobile Compatibility: In today's mobile-driven world, it's crucial that your platform is mobile-friendly. Many users access online communities through smartphones and tablets, so a responsive design is a must.

Customization Options: Depending on your community's uniqueness, you might want to customize its appearance. Some platforms offer customization options to match your brand or niche.

Community Engagement Features: Look for features that encourage community engagement, such as polls, surveys, events, or gamification elements. These can boost interaction and retention.

Scenes, for instance, is an online community-building platform that's packed with all features designed to make your community thrive and offers a user-friendly interface, making it easy for you to set up your community, engage with your members, and yes, monetize it. 

Talk to our community expert!

3. Develop a Clear Value Proposition

Your value proposition is your community's wow factor. It's the friendly "come on in, you'll love it here" message that invites people to join and stay. A great value proposition not only gets people through the virtual door but also keeps them engaged and excited to be part of your online community. Let's dive into what this means:

Understanding Value Proposition: Think of your value proposition as the cool factor of your community. It's what makes folks say, "I've got to be a part of this!" It's like telling them, "You won't want to miss out on what we've got."

Know Your Audience: First, you need to understand your audience, just like knowing your friends' likes and dislikes. What are your future community members into? What problems do they need help with? Knowing this helps you make your community super appealing.

Define Your Community's Purpose: Your community needs a clear mission. Are you here to help professionals network, let hobbyists share their passions, or provide an industry-specific resource hub? Knowing your purpose is like setting the theme for your party.

Identify Unique Selling Points (USPs): Your community needs something special that makes it stand out. These are your Unique Selling Points (USPs). Maybe it's exclusive content, expert advice, or a friendly, supportive vibe. These are the reasons people will choose your party over others.

Communicate the Benefits: Your value proposition is like your party invite. It should clearly say, "Here's what you get by joining us." Keep it simple and relatable. Tell your potential members why your community is worth their time.

Keep It Member-Centric: Remember, it's not about bragging about your community's features; it's about showing how those features benefit your members. Think of it as saying, "You'll have a blast here, and here's why!"

4. Build a User Friendly Community

A user-friendly community is like a warm, welcoming house for your members. It encourages them to stick around, participate, and enjoy the experience. When members feel at ease and can easily engage with your community, it's more likely to thrive and grow. Here's how to make it happen:

Simple Navigation: Think of your community like a big house party with lots of rooms. You'd want signs and directions, right? Well, make sure your community has clear menus and links so members can easily find their way around.

Mobile-Friendly: Just like you'd make sure your home is welcoming to everyone, make sure your community works smoothly on mobile phones and tablets. People use their phones for everything these days!

Good-Looking Design: Imagine decorating your living room for your friends. You'd want it to look nice, right? Your community's design should be visually pleasing and match its purpose.

Speedy Loading: Nobody likes waiting around, whether it's for a snack at your party or for a webpage to load. Ensure your community loads quickly to keep members happy.

Easy Posting: Hosting a discussion in your community should be as simple as chatting with friends. Make sure posting comments, questions, or content is a breeze.

Feedback Loop: Be open to feedback from your members. If they suggest improvements or report issues, listen to them. It's like asking your guests if they enjoyed the party and if there's anything you can do better next time.

5. Monetize Your Community

Monetizing your community isn't just about making money; it's about ensuring the sustainability and growth of your space. Generating income can help cover expenses, invest in improvements, and reward your time and effort in nurturing the community. The key to successful monetization is maintaining the value and integrity of your community. 

On Scenes, you can easily monetize your community using the "Shop" feature that involves creating a virtual marketplace within your community platform where members can buy and sell products/services. This can be a lucrative opportunity to generate revenue while also enhancing the engagement and value of your community. 

Here are some ways you can monetize your online community:

Membership Fees: Just like an exclusive club, consider offering premium memberships with special perks. Members can pay a recurring fee to access exclusive content, events, or features. This steady stream of income can help sustain your community.

Advertisements and Sponsorships: Think of your community like a prime billboard location. You can partner with relevant brands or run targeted ads within your community. Make sure the ads align with your community's values and interests to keep members engaged.

Premium Content: Offer premium content like e-books, webinars, or courses to your members for a fee. Your expertise and the trust you've built within your community can make these offerings attractive.

Merchandise and Swag: Just like a cafe with branded mugs and T-shirts, sell merchandise related to your community's theme. This can include clothing, accessories, or even digital products like templates or guides.

Events and Workshops: Host paid virtual events, workshops, or conferences related to your community's interests. Members pay to attend and gain valuable knowledge and networking opportunities.

Affiliate Programs for Members: Create affiliate programs within your community. Members can earn commissions by referring new members or promoting products and services to their networks.

Sponsored Content: Collaborate with brands or individuals who are willing to sponsor specific content within your community. This can include sponsored posts, webinars, or dedicated discussion threads.

Job Boards: If your community is related to a specific industry or profession, consider creating a job board where employers pay to post job listings. It can be a valuable resource for both job seekers and employers.

Premium Access Levels: Offer tiered membership levels with varying access to content and features. This can cater to different budget levels and provide members with choices.

Creating a profitable online community business is a rewarding endeavor that requires dedication, an understanding of your niche, and a commitment to providing value to your members. By following these steps and staying responsive to your community's needs, you can build a thriving online community that not only fosters connections but also generates revenue. Remember, success in the online community space takes time, so be patient and persistent in your efforts.

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