How do you price a Membership
If you've made a decision to create the site for membership or you're thinking about it since you're excited by the possibilities of a model for community-based business, that's awesome! The membership sites are awesome and have the awesome capabilities to expand in ways they're not seen elsewhere within the creation economy.
Imagine it. Imagine the possibility of bringing together an entire group of people in something important for you as well as them, to walk you through a change that they are interested in. This is the strength of an online membership website.
But one of the hardest things about getting started is to figure out how you should actually charge for the thing. How do you know the right price point, so that you don't end up A. Working for nothing or, B. charging so much that your audience runs away.
The good news is, we've got the data. So in this article, we'll walk you through our experiences on how to price a membership site from our 12,000-plus respondents . (Don't overlook, if would like to create with your very personal Mighty Network, you can take a trial for no cost! )
In this article
1.1. Paid plans sell
1.2. It's not necessary to have millions of followers
1.3. The growth process is natural
1.4. Paid membership drives engagement
2. Average membership site cost per Mighty Network
3. Questions to consider when pricing a membership site
3.1. Does it scale?
3.2. How does it fit within your revenue model?
3.3. How much do you have to spend to stay on the right track?
4.1. Members should be invested
4.3. Consider your members' alternatives
4.4. Prices based on income objectives
4.5. One-time vs recurring fees
4.6. Membership Churn
What data we have
Paid plans sell
If you're nervous about choosing an pricing plan for your membership site and scaring people off Let's set your minds at ease. The data we have gathered shows that the sites that have paid plans available They are able to sell plans that are paid. 77% of those that offer the option for payment are selling. So your chances that you sell memberships high! This is a good thing!
If you're considering an online business model that is freemium that allows users to get a the free service and later pay for upsells You're in luck too. They still boast the highest conversion rate at 70% for their services.
It's not necessary to have thousands of fans
A lot of our sell memberships to their communities without enormous followers. 53% have fewer than 10,000 fans!
Growth is organic
In the framework of a Mighty Network, the Host can choose to let members invite others into the community. In a paid community the organic growth of members inviting friends is twice the rate it is in a free community.
Paid membership drives engagement
The old adage is that people appreciate what they pay for, and that is also true for memberships, too. There is a greater degree of participation in our memberships that are paid. You don't have to be posting 100 times a week to make it happen. The most popular Hosts only need to post 2-3 times per week in order for their communities to stay alive.
Cost of membership for a typical site for the Mighty Network
The average price of a Mighty Network is $39.55/mo. Many larger communities have this membership fee supports the creator in full time. But even in a smaller community, it's an amazing side hustle and a way better monetization model over almost all other options for the creator-based economy. It would take tens of thousands to billions of views on social media channels in order to generate this kind of income.
With the capability to charge over $1000 Additionally, you have the opportunity to explore high-ticket courses and memberships without needing to create a separate platform.
Questions to consider when pricing a membership site
So if you're trying to determine what the right price is for your membership website Our data suggests an average of between $15-$40. However, this doesn't mean that you cannot be able to charge higher prices in certain instances However, you'll need some planning.
Here are some queries to lay the groundwork for pricing your site's own price:
Does it scale?
Every membership website is not created to be the same. Certain sites can grow indefinitely and we have communities with many thousands of people in them. The huge community gives the creators plenty of freedom to offer membership for less as they're earning a return on scale.
However, if you're managing a group that is small in size, for example group coaching or a mastermind group that have a limited number of people who you could serve, then you probably need to raise the price.
What does it mean within your revenue model?
The price of a site that is a member's club cannot be considered a standalone thing. Consider it a whole part of the model for monetization. If you're offering upsells like courses or premium group access, you might want to keep the cost of membership as low as you realize that it is easier to sell to existing members of your network than to market your products elsewhere.
If you are selling an item that is physical and your membership site supports You could decide to provide a community for customers at no cost or for the cost of a modest fee, to assist customers use the product. Find out how any member revenue fits within your existing or planned revenue sources.
How much do you require to go on?
It's so easy to get excited about the possibilities with regular monthly income. Because the web is filled with stories about people who make a ton of money while doing very small, it's very easy to think your community will be your road to riches.
We hope that it's true!
However, if there aren't a ton of new users signing up in for the initial month, what are the next steps you do to continue?
If you're going be putting your energy into a community every month What's the minimum the income you'll need during that duration?
Let's say you're confident you could gain 15 members (or perhaps you could offer 15 memberships in advance). Even if you only were able to keep those 15 members next year, how do you need to charge them in order to ensure that the group is worth your while?
Pricing Factors
You've probably guessed that when you're trying to decide what to cost the cost of a membership site There's not a universal formula that works for all sites. You'll be considering a lot of factors that are unique to your. These are a few final considerations you should think about:
Members need to be actively involved
We have already mentioned, one of the things we see again and again is that people are able to appreciate the value they get for their money. It means that even though it may be counter-intuitive the communities that are charged are often healthier and have greater engagement among members.
Price-based on value
A most tried and tested methods to consider pricing is through thinking about it. Instead of thinking about how much time that you invest in something in order to make it. Think about the value it will bring to those who sign up. As an example, suppose that entrepreneurs join a group and gains the experience of teaching and support to increase their company's revenue from 0-$100k/year in revenue, what would that membership be worth to them?
Take into account your members' alternatives
What ELSE would your members have to shell out to enjoy what they'll see through your organization. If you're an exercise center that aids members achieve their goals for health think about what they'd need to shell out to achieve those goals otherwise. A personal trainer? A gym membership?
Consider what members would be required to cover to accomplish their goals by other means.
Pricing based on revenue targets
One of the other considerations that could impact the pricing structure for your membership website is your income target. Let's say you wanted to earn $4,000 a month to quit your day job. You can use this number to work backward and establish revenue targets.
For instance, if you were pretty confident there would be 100 members who would be interested in joining your community, you could charge $40. If you were hoping to earn an average of $4,000 per month as a group coach and you decide that you do not want to create a group that is 100 members. In this case, you could work backward according to your capabilities. If you were aware that you could run 6 groups per month that have 8 members, then your membership fee becomes a mathematical equation that is : 4,000 (or (6 x 8) = $83.33/mo.
One-time vs recurring fees
Much of what we've discussed below is based upon the concept of monthly membership fees. However, there are instances where it makes more sense charging a single fee. If, for instance, you have a high-value course that can be completed within two weeks, and it is included in your membership, you might consider that some people may choose to take the course and then leave. It could be the case where something like a one-time payment that comes with 6 months of free membership is more sensible.
Membership churn
The new sites will not know the number at this point, however, after you've been online for a few months, you'll know the percentage of your members who leave(e.g. e.g. how long members stay for on average and the number of members who leave every month. It can determine your pricing strategy in order in order to determine the right amount per person.
Conclusion
As you've seen above There's not a single solution to the question of how much you should charge for your membership website. The best you can do is take these things into consideration and come up with the price that is reasonable for you based on the benefits your customers are getting from the site.
And if you're looking for a place to build an incredible membership group which permits you to offer lessons, hold discussions or live streams, as well as connect with your members via an app, come try for free!