Risk: High

Starting a Membership-First Business Model from scratch can be risky for someone who can't afford to lose money. There is a potential to lose money invested in setting up the business, time spent on building the membership base, energy in marketing and managing the business, and confidence if the business does not perform as expected. Beginners might spend money on marketing and resources without seeing immediate returns. Startup costs, which can range from $500 to $2000, may not pay off if the membership base does not grow as anticipated. Online discussions often mention the challenges of attracting and retaining members, leading to financial losses for some entrepreneurs.