Find the best price for your membership website
Do you not know the best way to charge your membership website? Feeling overwhelmed by options? Follow our step-by-step guide.
Making a steady living as a side-hustler is daunting. Some days you've got too numerous projects. On other days, there are no projects.
It's an arduous balance and we're here for help.
In this post we'll go through all the steps needed to come up with an effective pricing strategy.
Our belief is that good pricing depends on understanding your customer. That's why the best first step is to conduct competitive research.
Step One: Do some research on the prices of your competition's membership fees
A few benchmarks suggest that the average member pays 12 dollars a month . Other benchmarks say the typical price is between $25 and $49 per month to join. Which one is correct?
The averages don't provide any context, which is why you need to do your own research on competitors.
Research on competitors is an excellent way to begin due to a number of reasons. It helps you work out the areas you stand in relation with others, and may provide some inspiration.
Instead of deciding a price out of thin air, spend a few hours researching your competitors.
Checklist of competitor research checklist:
How many price tiers do they have?
Are the subscriptions annual, perpetual, or annual?
What advantages do they have at each pricing tier?
For your convenience, here's a template to conduct competitor research which you can download or copy. download.
But competitor research comes with some warnings too and don't end there. Just because a price point works for your competitors doesn't mean it's perfect for customers you serve.
Research time. Let's say you want to start a website for membership for healthy recipes.
The best place to begin with your research is Google. Type your industry + membership to see what comes up. In this particular instance, I typed "healthy recipes membership".
The first result that comes up is Healthy Grocery Girl . Start the competitor research template and make notes on the page.
This is just one of the competitors that's been covered and you don't have to stop there. You should gather 10 examples in order to get an adequate sample size.
Other examples include The Food Witch and her Virtual Kitchen ($10 per month) or, for those who want the higher end of the price spectrum, Kathy's Cooking Club . Kathy offers a $50 monthly membership (or the equivalent of $500 per year).
After having filled out the spreadsheet with information from your studies There should be some patterns that emerge.
In this instance, my research in the healthy recipe area revealed that the typical annual membership cost is about $25 to $30 and the lowest at $4.99.
What is the best way to position your self within that space? This depends on how established you are within the field.
If you're new to the market, a good strategy would be to start low to get more customers. You can always increase the price as your popularity improves.
Remember that what's a lower cost in one sector does not apply in the other. This is why your pricing system must be grounded in the latest research.
If you're a recognized name that has a loyal following, you can start at an increased price.
Engagedis the most important word here. It doesn't take a lot of social media followers to get a high price.
The customer will accept higher prices if they trust you and see how it will profit them directly.
For example, Alana Terry's Successful Writer Membership is $ 247 monthly. The membership helps authors grow their business with Facebook and Amazon ads.
Alana lists every benefit and the associated cost. It's a great opportunity to show the benefits of membership levels.
Caitlin Fisher's Passion Pacers Group Mentorship is also focused on the expense of each perk in relation to. the cost per month.
Outlining costs helps visitors realize how much savings they can make. Be sure to ensure that you're not overdoing it -Three to five demonstrations of cost-benefit are enough.
In the event that they're not they'll let them know -- provided you're following the next step.
Step #2: Discuss your ideas with your clients and your social media followers
The most reliable way to find out what people think of as a "fair price" is to get them to tell you.
Let your customers feel part of your journey. It's an opportunity not taken advantage of by the majority of companies that don't solicit feedback from their customers.
Here's how to ask them for their input.
Make a survey to your customer
Create your survey using an online form maker like Typform and Jot Form .
Here's one I made earlier using Google Forms that asks three questions.
First, ask your audience what they'd like to get out of the membership site. Fill this section with possibilities you're thinking about.
Get them excited about what they could be getting Then inquire "how is the cost?"
In our studies of competition, an appropriate price for a newcomer in the realm of healthy recipes is between $5 and $10 each month. This is why I've offered higher prices to test how the people who are interested in the product react.
It is also possible to select another "Other" option in case your customers want to suggest what they think of as a fair price.
Bear in mind your customers are likely to choose the lowest membership option. In one study, customers' perception of a fair cost will skew to the lower end of what they actually pay. Offering different tiers mitigates this negative perception.
Finally, the form ends by asking for follow-up questions.
If you see anyone who fills out this form, it's a sign that they're excited about your future membership site. Inform them when your site is live.
This survey can be sent via an email to your existing or past customers.
Other places you could share it are Reddit as well as pertinent Facebook groups, and Slack. Make sure you share it on your social media channels.
In order to convince people to take the survey is to do two things:
Ask for their advice. Examples: "Hey folks, I would like your help to create my membership website. Do you have the ability to vote on a couple of options for me?"
Emphasize how short it is. For example: "It'll take you 30 seconds maximum. Two simple questions".
What is the best way to not accept such an offer?
If you can get their feedback, you'll have a ballpark an idea of what range of price they are willing to pay for.
Step 3: Calculate the pricing structure
So take a breath before you decide on the cost you believe is the best. Be aware of the costs associated with running a membership site such as marketing and fees for platform. What is the amount you will need to generate out of your membership revenue to be able to meet your financial goals? To make a profit?
Determine the number of membership levels that you'll be offering in addition to the cost you'll be charging for each. If you're an existing user of a paid plan, you're able to design as many membership tiers as you'd like, for as many customers as you're able to get. There is no penalty for having a successful experience, nor are your customers, which is why there are no transaction fees on any paid plans.
Join us at our weekly demonstration to learn how simple to setup and to use.
In terms of demos, what will you be sharing with your members? Let's talk about the benefits as well as the benefits you'll offer.
Step 4: Pick the types of membership benefits that you would like to avail
The focus is not only on the amount of money. Customers must want what you're offering.
If the customer feels that the product you offer will be beneficial to them, they'll be more likely to pay more money for the product.
Passive perks
Passive perks are evergreen and don't need much care.
This includes things such as:
Ebooks
Worksheets
Templates
Planners, as well as other printables
Discounts
Photography Marketing Membership at Signature Edits gives exclusive perks that are passive. The membership includes classes, presets as well as tools and templates for a lifetime subscription that costs $197.
The landing page of their site explains every product included, as well as their actual cost. It shows what a great offer members receive.
Joe Kuhn Basketball Membership scheme links each perk to a item. The members can view the worth of each one (which in total, is much more than $7.99).
If you have a limited amount of available time, then passive benefits are an easy choice. But if you want to increase the amount of money you earn, remember that you could charge more for active perks.
Active perks
Like the name implies that active perks are engaging. They need your regular input.
They include:
One-on-one coaching
Individualized feedback
Check-ins for progress
Forums for communities (e.g., Facebook groups)
Live classes
Podcasts
Guest experts
The 10K Club of Natalie Sisson is an excellent example of an online membership using predominantly active perks. They host weekly Facebook Live, a monthly moaching call (mentoring and coaching) as well as the monthly mastermind. All that for $197 a month.
Most memberships are mix-and-match with active as well as non-active benefits. Consider Vanessa Ryan 's membership plan. She offers Canva templates and micro workshops for $50 a month.
You'll need to decide for yourself the ideal balance between passive and active perks the membership will offer.
To assess your perks, ask yourself: Which will be the most beneficial to your customers? What advantages do you have the time and the resources for?
Once those decisions are made and you're on the path to building a fantastic member-based website.
Price your membership site easily
The decision of deciding on a price for a membership can be stressful. By following these guidelines, you're removing the guesswork from the equation.
To begin, the steps are:
Research your competitors to know what prices are acceptable for your particular industry. Take note of what perks they provide.
Get your customers' input to determine what price they're willing to pay as well as what they'd like out of a membership.
Determine your operating costs and determine what you'll need to earn.
Choose what you want to add to your membership that will add the value of your membership to clients.
Ultimately, your business is unique, so your pricing should be too. These four steps will boost your chances of success. They will also assist you in creating a membership site your audience will love.