What is the best way to price a membership
If you've developed an online membership website or you're thinking about it since you're intrigued by the potential of community-based businesses It's great! These sites are fantastic and offer the incredible capacity to grow in ways that you won't see anywhere else in the creator economy.
Imagine it. Imagine the possibility of bringing together an entire group of people in something that matters for you as well as them as they guide them through the change they are interested in. That's what you can do with the membership sites.
One of the most difficult aspects of starting out is to figure out how to actually charge for the thing. What is the right price point, to ensure that you do not get to the point of in the position of A. doing nothing for nothing, or B. charging so much that people are ejected.
It's good to know that we've got the data. In this post, we'll explain our experiences on pricing a membership site from our survey of 12,000 . (Don't overlook, if are looking to launch your own Mighty Network, you can test it out for free! )
In this article
1.1. Paid plans can be purchased
1.2. You don't need millions of followers
1.3. Growth is organic
1.4. Paid membership drives engagement
2. Average membership site cost for a Mighty Network
3. Questions to consider in determining the price of a membership site
3.1. Does it scale?
3.2. How does it fit into your business model for revenue?
3.3. What is the amount you need to keep going?
4.1. Members should be invested
4.2. Value-based pricing
4.3. Consider your members' alternatives
4.4. Pricing is based on income objectives
4.5. One-time vs recurring fees
4.6. Membership 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 rest. The data we have gathered shows that the sites that provide paid-for plans and plans for paid membership, they can offer paid plans. 77% of that have the option of payment creating sales. So your chances that you sell memberships very high! Which is good!
And if you're thinking of the freemium model of business, where people get free access and make upsells on their behalf You're in luck as well. They still boast a 70% conversion rate for their services.
There is no need for millions of followers
Many of us are selling memberships to their communities that do not have huge followers. 53% of them have fewer than 10,000 fans!
Organic growth is natural
In a Mighty Network, the Host is able to allow users to invite friends to join the community. For a community that is paid it is possible to see this growth organically with people inviting their friends to join is double the amount that it happens in a free community.
Paid membership drives engagement
It is a well-known fact that people appreciate the things they spend money on, and this is true of memberships, too. We see a higher amount of interaction with our members who pay. And you don't need to post 100x a week to make it happen. The most successful Hosts on just have to publish at least 2-4 times per week to keep their communities thriving.
Average membership site price for the Mighty Network
The cost of membership for a Mighty Network is $39.55/mo. Many larger communities have this fee helps the creator full-time. However, even for a smaller community, this price means an excellent side business and a way better monetization model over almost all other options in the creator economy. You would need tens of thousands to billions of views on social media channels to earn this amount.
and with the capacity to take orders over $1000 Additionally, you have the opportunity to explore the most expensive programs as well as memberships, without the need to add another system.
Considerations to make in determining the price of 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. It doesn't mean you shouldn't increase the price in specific instances However, you'll need some strategy.
Here are some questions to help you get started pricing your own website:
Does it scale?
Each membership site isn't created to be the same. There are some that can be scaled infinitely and we have communities with many thousands of people in them. The huge community gives creators the ability to provide membership at a lower cost since they're recouping costs based upon the scale.
However, if you're running a community that's small in size, for example a group coaching or mastermind group in which you are limited on the number of members that you are able to serve, you probably need to charge more.
How does it fit into your business model for revenue?
The pricing of a membership site isn't an end-all-beall solution. You should consider it as an integral part of the model for monetization. If you're offering upsells like courses or premium group access, you may prefer to keep the price of membership low, recognizing that it is easier to sell to members of your group than to market your products elsewhere.
If you are selling an item that is physical and your site's membership program supports You could decide to create a customer-based community on a free basis or at the cost of a modest fee, to assist people use the product. Figure out how any membership revenues will fit into your current or planned income sources.
What is the amount you need to keep going?
It's so easy to get excited about the possibilities with regular monthly income. The internet is filled with stories about people who make a ton of money while doing very small, it's very easy to believe that your neighborhood will be your road to riches.
and we are hoping it's the case!
But, if you don't see a lot of new users signing up in the first month, what are the next steps you need to keep going?
If you're planning to work in an ongoing community How much earnings you'll require for this time?
Let's imagine you're sure you'll have 15 members (or maybe you can even pre-sell 15 memberships). Even if you just were able to keep those 15 members next year, how do you need to charge to make the community worth your while?
Pricing Factors
As you've likely gathered in trying to decide how to price a membership site, there's no one-size-fits-all approach. There are a variety of factors that are unique to your. These are a few final considerations to consider:
Members must be invested
Like we mentioned earlier among the many things that we have seen repeatedly is that people value the services they are paying for. That means, even though it may be counter-intuitive the communities that are charged tend to be healthier and enjoy greater engagement among members.
Value-based pricing
One of the known and tried methods to think about pricing. Do not think about how many hours that you invest in something creating it, but think about the value it will have to the people who join. In the example above, if entrepreneurs join a group and receives the information as well as the guidance, instruction, and motivation to increase their company's revenue from zero to $100k per year, how much will that community's membership mean to the person joining?
Consider your members' options
What ELSE could your customers have to spend money on to receive what they'll see through your organization. If you're in a fitness community that helps people achieve their health goals think about what they'd need to shell out to achieve the goals they've set for themselves. An individual trainer? A gym membership?
Consider what members would need to spend to reach their objectives through other methods.
Pricing based upon the income goals
One of the other considerations which could affect your pricing structure on your membership website could be your income target. Let's say you wanted to earn $4,000/month in order to quit your day job, you could use this amount to go back and determine your revenue objectives.
So for example, if you felt confident that there would be 100 members who would be interested in joining your community You could set a price of $40. If you wanted to make the equivalent of $4,000 per month working as a group trainer You might be able to decide that you don't want a community of 100 people. In that scenario, you can reverse your work depending on the capacity you have. If you know that you can run six groups a month with 8 members, then your membership fee becomes a mathematical equation that is : 4000 6 x (6 8) equals $83.33/mo.
One-time vs recurring fees
The majority of the information we've provided above is based on the concept of monthly membership fees. However, there are instances that it is more sensible charging a single fee. In the case of example, if there is a valuable course that can be completed within two weeks, and it includes a membership fee it is possible that some people may choose to take the course before deciding to quit. It could be the case when a single fee that includes the benefit of 6 months of complimentary membership would be more appropriate.
Membership churn
Websites that are new won't have this number yet, but after you've been online for a while you can know the percentage of your members who leave- e.g. the length of time members remain on average and how many leave every month. You can use this to inform your pricing strategy in order to determine the right amount per person.
Conclusion
As you've seen above, there's no one answer for how to price your membership website. The best you can do is to take these elements into consideration, and then create a price that makes sense for you based on the benefits your customers are getting from it.
If you're searching for a place to build an incredible members-only network with a platform that lets you sell courses, host discussions or live streams, as well as reach your members through apps, try it at no cost!