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A quick IM-'WOULD YOU RATHER....?'

by newbim
10 replies
HELLO WARRIORS!!

This is more of an opinion question rather than an assistance-type question. The figures are exaggerated (by my standards, but not for many of you out there)

Would you rather make $100k per year by:

A) Having a membership site with 1192+ people each paying $7 per month?

OR

B) Having 100 people each pay you $85 per month for "private coaching" -style site?

AND...

Out of the two options, which of them would you think are easier to provide value for money?

.... what are your thoughts?

cheers,

Newbim
#$100k #imwould #membership sites #quick #successful #value for money
  • Profile picture of the author JasonGiorgini
    I would rather have 1192 people me $7

    You're going to lose members any way you look at it. I just don't see 100 people paying $85 for a long period of time. This is a substantial amount of money. However $7 is easy, and for such a low price, even when you lose members I'd think it would be easier to get more at $7 than finding new clients at $85.
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  • Profile picture of the author Nate Simms
    I'd go with the membership site, hands down.

    ... why? Because it is much more passive income. There is still work involved, but you aren't quite at the 'beck and call' of your customers as you would be as a private coach.
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  • Profile picture of the author NickWatson
    Personally id go with the 1192+ members at $7

    Why?

    Because firstly as mentioned above you are going to lose customers/members either way...with such a low price, you would lose less members, and it would be very easy to gain new members again (when compared to the $85 coaching)

    Secondly, it would be easier to provide value to someone paying only $7 a month...you could simply create videos / PDF's etc...and put it up for all members to access...this would be acceptable - they are only paying $7 after all...for a member paying $85...his going to want a lot more personal attention - this is YOUR TIME...

    Thirdly...and probably most importantly...I would chose the 1192+ members any day over the 100 members because you have a MUCH larger audience of PROVEN BUYERS to promote other stuff to...if you have a 10% conversion on other products you recommend..with 100 members you get only 10 sales...but with 1192 members you get 119 sales!
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    • Profile picture of the author JohnMcCabe
      Originally Posted by NickWatson View Post

      Personally id go with the 1192+ members at $7

      Why?

      Because firstly as mentioned above you are going to lose customers/members either way...with such a low price, you would lose less members, and it would be very easy to gain new members again (when compared to the $85 coaching)

      Secondly, it would be easier to provide value to someone paying only $7 a month...you could simply create videos / PDF's etc...and put it up for all members to access...this would be acceptable - they are only paying $7 after all...for a member paying $85...his going to want a lot more personal attention - this is YOUR TIME...

      Thirdly...and probably most importantly...I would chose the 1192+ members any day over the 100 members because you have a MUCH larger audience of PROVEN BUYERS to promote other stuff to...if you have a 10% conversion on other products you recommend..with 100 members you get only 10 sales...but with 1192 members you get 119 sales!
      Nick, thanks for typing my response out for me...
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      • Profile picture of the author David Keith
        what the hell, i will take the other side.

        there is something to be said for a small group of very responsive people.

        no one has mentioned support issues on 1200 people. and those of us with some experience know that the $7 buyers often require more support than the guys who buy $100 products. and you would have almost 1200 of those guys who expect something of you every month, not just a one off ebook sell.

        then you get on these the idea of retention. unless you have a great drip feed type of membership program and are constantly adding a ton of content you will get a lot of $7 buyers who go in and DL or copy paste your content and then leave.

        if you use a drip feed method (which works), you always have to create more content to keep people paying than you would with an open style membership site.

        now to the issue of backend sales. the $7 buyers are probably mostly low end buyers. you mail out an offer for a good $297 course to the 1200 and your response will be weak. the $85 buyers are much more likely to buy the highend products or other monthly hosted solutions. they are more serious about their businesses.

        so to your bigger list, you are left to promote other low priced...often low quality products. not really a business i want to be in.

        now how would you get this site up to that many members. most membership sites are promoted via affiliate programs which pay a recurring commission. lets say you go with the standard 50%. thats $3.5 of your $7 and your affiliates still only make $3.5 a month. not that enticing.

        now take the $85. product. you would be offering a $42.5 monthly recurring commission. now that will catch the attention of some jv partners.

        i realize both of the cut into your profit, but they both cut equal percentages. one just gives you a much more marketable product via an affiliate program. and you are going to have to get your site up to that many members via some sort of advertising.

        there are many other things to consider, but i am getting tired of writing, so i will move on and see what the responses to my way of thinking are.
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      • Profile picture of the author NickWatson
        Originally Posted by JohnMcCabe View Post

        Nick, thanks for typing my response out for me...
        ha ha..you what they say, great minds think alike
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  • Profile picture of the author newbim
    Thanks for the responses so far. It's interesting. I know that either side would require a lot of work. I would imagine the pressure to deliver $20m secrets every month is increased with the 'coaching program' scenario. I don't want to become a multi-millionaire, but it is my personal goal to make enough to survive doing something I love, which is where the niche I am considering is.

    Hmmmmm.... lots of food for thought.

    It got me thinking. Alan (WF Admin) has got a really great model - free for the basics, then a one-time fee (or at least one fee every 20 years or so, haha). I knew that I was going to get a lot of VFM because there is so much value for the free members, but the up-sell is (or at least CAN BE, if applied properly) priceless.

    Thanks again for the responses so far.

    Cheers,

    Newbim.
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    If what I said helps, let me know, throw me a 'thanks'.
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    • Profile picture of the author David Keith
      if your thinking of a membership style site. try to integrate some software or something like that into your site.

      you need to increase the "pain of separation" factor of leaving your site. no matter what your price point.

      content is easy to walk away from unless its suburb. but most of us pay for services we use every month, and although we might like to not pay those bills, we have become very dependent on services like aweber.

      just another thing to consider.
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  • Profile picture of the author sbucciarel
    Banned
    Originally Posted by newbim View Post

    Would you rather make $100k per year by:

    A) Having a membership site with 1192+ people each paying $7 per month?

    OR

    B) Having 100 people each pay you $85 per month for "private coaching" -style site?

    Newbim
    The coaching site is like working for 100 people. The membership site is like working for one... same content for all 1,192 people. The choice is simple. :p
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  • Profile picture of the author Steven Miranda
    Membership site by far..
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