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Membership site question...1 month 3 months 6 months, etc?

by BJ Min
3 replies
hi,

i am looking into creating a membership site...with monthly audio interviews...

for those of you who have much experience with membership sites,
what's the best?

getting paid monthly?

or every 3 months?
or every 6 months?
or every year?

would love to hear your thoughts...and why...because i heard some people
are against the every month thing...because people tend to cancel faster
that way...

thanks
BJ
#membership #month #months #question1 #site
  • Profile picture of the author Kevin-VirtualProfitCenter
    You have to judge (initially by some guess work and then through testing over the months) whether you will benefit from a low priced, long retention site or a high price, low retention one.

    One fitness site owner I know--who earns over $2 million a year--bills quarterly and has a very low retention beyond six months. One adult site owner I know charges $4.95 and depends on high retention to make money.

    If the price point is moderate in the marketplace or if the price point is far below the real world value of the information provided then it really pays to try two price points: One high where you get more of your money quickly and one low where you get your money over a 6-8 month period.

    Without more info I can't tell which would be better for you.
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  • Profile picture of the author Mo Goulet
    In today's economy, get the money up front. Offer a monthly and price your yearly at about 4 times the monthly and add a lifetime for the price of one more month (total 5 times the monthly) Make it so irresistible so you get the commitment up front. Remember there are other ways to make money from your membership. Offer them specials they believe are offered to them only as your member. "So and so is offering my members this special deal..." I have a huge offer in my sig that converts at about 3% and the software has a special feature in it where I can offer special deals anytime I wish. Build you list then make money...
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  • Profile picture of the author TimKerber
    Proapc and Kevin had some good advice that I agree with.

    Bottom line is until the site is up for a while you are not going to know what the sweet spot is for pricing combinations.

    Once you have your stats of your average monthly subscribers drop off rate, then you will know where to price your yearly.

    So in Proapc's example, if it turned out that you had an average of a 7 month stick rate for monthly subscribers, then you would be selling yourself short if you priced your yearly plan less than 7x your monthly rate.


    Keep in mind that if you have a yearly, you have to decide whether to make that recurring or not. A yearly recurring will increase your likelihood of chargebacks as people may not recognize the charge.

    The comment about other ways to make money on the back end are right on the money as well. Done correctly it can increase the revenue from the average member up considerably.


    The nice thing about the internet is that it is easy to do some testing and to drive some traffic at offers to see what the market is willing to bear.

    Tim
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