How do you price a membership Website in 2022
If you've developed an online membership website or you're considering it because you're intrigued by the potential of community-based businesses That's fantastic! Membership sites are amazing and have the awesome capabilities to expand in ways unlike anything else in the economy of creators.
Think about the idea. Imagine gathering an entire group of people in an issue that is important for you as well as them and guide you through a change that they care about. This is the strength of a membership site.
However, one of the toughest things about getting started is working out how much is the proper price to cost for your product. How can you determine the appropriate price so you don't get to the point of A. working for nothing, or B. charging so much that people are ejected.
The good news is, we have the information. So in this article, we'll go over what we've learned about the best way to charge a membership site from our 12,000-plus respondents . (Don't forget, if you would like to create with your very Your own Mighty Network, you can test it out for free! )
The article
1.1. Paid plans can be purchased
1.2. There aren't any millions of fans
1.3. Growth is organic
1.4. Paid membership drives engagement
2. Average membership site price for a Mighty Network
3. Questions to consider when pricing a membership site
3.1. Does it scale?
3.2. How does it work in your model of revenue?
3.3. How much do you have to spend to stay on the right track?
4.1. Members should be properly invested
4.2. Price-based value
4.3. Consider the options of your members
4.4. Prices based on income objectives
4.5. One-time vs recurring fees
4.6. Members churn
What our data shows
Paid plans sell
If you're nervous about choosing the pricing method for your membership site and scaring people off Let's set your minds at ease. The data we have gathered shows that when membership sites offer paid plans, they are able to offer paid plans. 77% of those that offer the option of payment making sales. This means that your odds that you sell memberships are very high! This is a good thing!
If you're considering the freemium model of business, where people get free membership and then make upsells on their behalf, you're in luck here as well. They still boast a 70% conversion rate of their product.
It's not necessary to have thousands of fans
Most of them are selling memberships to their communities that do not have huge followers. 53% of them are less then 10,000!
Growth is organic
Within the framework of a Mighty Network, the Host can choose to let members invite others into the community. For a community that is paid it is possible to see this growth organically with people inviting their acquaintances is two times as fast it is in a free community.
Paid membership drives engagement
The old adage is that people appreciate the things they spend money on, and that is also true for memberships as well. There is a greater amount of interaction with our paid membership communities. And you don't need to update 100 times per week to make it happen. Most successful hosts on just need to update 2-4 times a week in order to maintain their community's health.
Cost of membership for a typical site for the Mighty Network
The median cost for membership on Mighty Network is $39.55/mo. In many larger communities, this fee helps the creator full-time. But even in a smaller community, this fee is an excellent side business and an incredibly efficient monetization strategy over almost all other options for the creator-based economy. You would need tens of thousands to billions of views on social media channels in order to generate this kind of income.
And with the ability to take orders over $1000 Additionally, you are able to look into high-ticket courses and memberships without having to add another system.
Considerations to make when pricing a membership site
In case you're trying determine what price you should charge for your membership website Our data suggests an average price of $15-$40. It doesn't mean you shouldn't increase the price in specific instances, but it will take some planning.
Here are some queries to get you started on pricing your own website:
Does it scale?
Each membership site isn't made to be the same. Certain sites can grow indefinitely as well as have communities of tens of thousands of people within them. The huge community gives creators a lot of latitude to charge less for membership since they're recouping costs based on scale.
If you're operating a community that was small in size, for example group coaching or a mastermind community where you will be limited in members you can serve, you probably need to charge more.
Does it make sense in your model of revenue?
The cost of a membership website shouldn't be an end-all-beall solution. Consider it one of the components of the model for monetization. If you offer upsells, for example, courses or premium group access, you may want to keep the cost of membership at a low level, knowing that it is easier to sell to existing members of your community than to try to sell products outside.
If you are selling the physical item your site's membership program supports, you might choose to create a customer-based community at no cost or for the cost of a modest fee, to assist people use the product. Figure out how any membership revenues will fit into your current and future revenue streams.
How much do you need to keep going?
It's so easy to get enthusiastic about the potential of regular monthly income. Since the internet is filled with stories of people earning tons of cash while doing little, it's easy to believe that your neighborhood will be your road to riches.
And we hope it's the case!
However, if you don't get tons of users joining for the initial month, what do you do to continue?
If you're going be putting your energy into an ongoing community How much earnings you'll require for this duration?
As an example, let's say you're confident you could get 15 members (or perhaps you could pre-sell 15 memberships). If you were able to keep those 15 members next year, how do you need to charge them to ensure that the group is worth your time?
Pricing Considerations
You've probably guessed that when you're trying to decide what to cost for a membership website it's impossible to find a standard approach that will work for everyone. There are a variety of different factors unique to your. Here are some final things to consider:
Members have to be invested
We have already mentioned One of the issues that we observe repeatedly is that people appreciate the services they are paying for. That means, even though it may be counter-intuitive, communities that charge something tend to be healthier and enjoy higher member engagement.
Value-based pricing
One of the tried and true ways to approach pricing is to look at the value. Don't think about the hours that you invest in something creating it, but think about the value it will bring to those who sign up. As an example, suppose that an entrepreneur is a part of a community and gains the experience, teaching, and encouragement to grow their business from zero to $100k per year, how much will that community's membership mean to them?
Think about your member's alternatives
What ELSE would your members have to shell out to enjoy what they'll see by joining your group. If you're the fitness center to help people achieve their health goals, consider what they'd have to shell out to achieve those goals otherwise. Personal trainers? A gym membership?
Consider what members would be required to cover to accomplish their goals by other means.
Pricing based upon revenue targets
Another aspect that could impact the pricing structure for your membership site is the amount you want to earn. Let's say you wanted to earn $4,000 a month to be able to quit your current job, you could use this figure to calculate backward and set revenue goals.
If, for instance, you felt confident that you could get 100 people willing to be part of your group You could set a price of $40. If you were hoping to earn an average of $4,000 per month as a group coach You might be able to decide that you don't want a community of 100 people. If this is the case, you could move backwards based on your capacity. If you knew that you can run six groups per month, with eight people in each, the cost of membership becomes an equation of math which is: 4000 / (6 8) equals $83.33/mo.
One-time vs recurring fees
Most of what we've shared below is based upon a model of recurring monthly membership fees. There are occasions where it makes more sense to set up a one-time payment. In the case of example, if you offer a highly valuable course that people can do within two weeks and comes with your membership it is possible that some people may choose to take the course before deciding to quit. That could be an instance where something like a one-time fee that includes 6 months of free membership makes more sense.
Membership churn
Websites that are new won't have this number yet, but once you've been up for some time, you'll be able to know what your membership churn is(e.g. e.g. how long your members are for on average and the number of members who quit each month. It can inform your pricing strategy for achieving a specific price per participant.
Conclusion
In the above example it's impossible to find a definitive 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 then create a price that makes sense to you, based on what your users are getting from it.
And if you're looking for an ideal location to create an incredible members-only group , that permits you to offer lessons, hold discussions streaming live, or connect with your members via apps, try it without cost!