How to Price a Membership site in 2022?
If you've made a decision to create an online membership website or you're mulling it over because you're intrigued by the potential of a model for community-based business That's fantastic! Membership sites are amazing with the ability to expand in ways you won't see anywhere else within the creation economy.
Imagine it. Imagine gathering an entire group of people in an issue that is important to them and you, to walk them through a transformation they are interested in. This is the strength of the membership sites.
One of the most difficult things about getting started is figuring out what is the proper price to price the product. How do you know the appropriate price to ensure that you do not get to the point of with A. working for nothing, or B. charging so much that the audience is unable to pay.
Good news is that we have the information. This article we'll go over the lessons we've learned on the best way to charge a membership site from our study of 12,000 . (Don't think about it, if you are looking to launch with your very personal Mighty Network, you can take a trial for no cost! )
This article
1.1. Paid plans can be purchased
1.2. It's not necessary to have millions of fans
1.3. It is an organic process of growth
1.4. Paid membership drives engagement
2. Average membership site cost for a Mighty Network
3. Questions to consider when determining the cost of a membership website
3.1. Can 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 properly invested
4.2. Price-based value
4.3. Think about the options of your members
4.4. Prices based on income targets
4.5. One-time vs recurring fees
4.6. Member Churn
What we can see in our data
Paid plans sell
If you're concerned about implementing the pricing method for your membership site or putting off potential customers then let us put your fears at peace. Our data shows that, in the event that membership websites provide paid-for plans and plans for paid membership, they can offer paid plans. 77% of that have the option for payment are creating sales. So your chances that you sell memberships are high! That's a plus!
And if you're thinking of the freemium model of business that allows users to get a free membership and then pay for upsells You're in luck as well. Freemium still have an average conversion rate of 70% to their products.
You don't need thousands of fans
A lot of our members are selling memberships to communities with no huge followers. 53% are less than 10,000 fans!
Growth is organic
Within a Mighty Network, the Host may allow members to invite others into the community. In a paid community it is possible to see this growth organically with the members inviting their acquaintances is two times as fast it is in a free community.
Paid membership drives engagement
It is a well-known fact that people appreciate the things they spend money on, and that is also true for memberships as well. We see a higher level of engagement with our members who pay. You don't have to post 100x a week to make it happen. The most popular Hosts just have to publish 2-4 times a week to keep their communities thriving.
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 membership fee supports the creator full-time. But even in a smaller community, this price means an amazing side hustle and an incredibly efficient monetization strategy that almost every other alternative within the economy of creators. You would need tens of thousands to millions of views on the social media platforms in order to generate this kind of income.
And with the ability to charge over $1000, you also have the opportunity to explore the most expensive classes and memberships without needing to integrate another system.
Questions to consider when evaluating the cost of membership sites
So if you're trying to figure out exactly what the right price is for your membership website Our data suggests that the average cost is between $15 and $40. It doesn't mean you shouldn't increase the price in specific instances However, you'll need some strategy.
Here are a few questions to help you get started pricing your own site:
Can it scale?
Each membership site isn't created to be the same. Certain sites can grow indefinitely and we have communities with tens of thousands of people who are members. The huge community gives the creators plenty of freedom to offer membership for less because they're making a profit based on the size.
If you're operating a community that was limited in scale, say coaching group or mastermind groups where you have a limited number of people that you are able to serve, you probably need to raise the price.
How does it fit within your revenue model?
The pricing of a site that is a member's club cannot be an end-all-beall solution. You should consider it as 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's much easier to offer upsells to existing members of your community than to try to market your products elsewhere.
If you sell a physical product that your site's membership program supports, you might choose to provide a community for customers on a free basis or at a small fee to help users use your product. Find out how any member revenues will fit into your current and planned revenue streams.
What is the amount you require to go on?
It's so easy to get excited about the possibilities with the possibility of monthly recurring income. Because the web is filled with tales of people earning tons of money while doing very little, it's easy to imagine that your local community could become your path to wealth.
We hope that it is!
If you don't get tons of new users signing up in within the first month, what will you do to continue?
If you're planning be putting your energy into an ongoing community, what's your baseline of earnings you'll require for this period?
Let's say you're confident you could have 15 members (or perhaps you could offer 15 memberships in advance). Even if you only fifteen members the following year, what many would you be able to charge them to give the community a worth time?
Pricing Aspects
As you've likely gathered, when trying to decide what to cost the cost of a membership site There's not a universal formula that works for all sites. There are a variety of different factors unique to your. Let's look at some last things to think about:
Members need to be financially invested
As we said above, one of the things we see again and again is that people appreciate the services they are paying for. It means that even though it might seem odd, communities that charge something generally have healthier members and higher member engagement.
Pricing based on values
One of the known and tried methods to approach pricing is to look at the value. Instead of thinking about how much time you put into something creating it, but think about the benefits it'll provide to the members who join. In the example above, if entrepreneurs join a group and receives the information of teaching and support for growing their business to 0-$100k/year in revenue, what is the value of that membership to the person joining?
Think about your member's choices
What ELSE would your members have to spend money on to receive the benefits they'll gain through your organization. If you're in the fitness center to help individuals achieve their health goals, consider what they'd have to shell out to achieve the goals they've set for themselves. A personal trainer? A gym membership?
Take a look at the costs that members need to spend to reach their goals through different methods.
Pricing based on income targets
Another aspect that may impact your pricing strategy for your membership site is your revenue goal. Let's say you wanted to earn $4,000/month in order to be able to quit your current job. You could utilize this figure to calculate backward and determine your revenue objectives.
For instance, if you were pretty confident there would be 100 members to join your community and you wanted to charge them $40, you could do so. If you want to earn an average of $4,000 per month as a group coach and you decide that you don't want a community with 100 participants. If this is the case, you could work backward according to your capabilities. If you were aware that you could run 6 groups per month, with eight people in each, your fee for membership is a mathematical equation: 4,000 / (6 x 8) = $83.33/mo.
One-time vs recurring fees
Most of what we've shared in this article is based on an idea of regular fee for memberships that are monthly. But there may be instances that it is more sensible to set up a one-time payment. If, for instance, there is a valuable course that can be completed in two weeks that comes with your membership it is possible that some of them might decide to attend the class before deciding to quit. This could be a case in which a once-off fee that includes six months of membership for free makes more sense.
Member churn
The new sites will not know the exact number, however once you've been up for a while you can know how much your member churn rate isfor e.g. how long your members are on average and how many leave every month. It can guide your pricing strategies for achieving a specific value per member.
Conclusion
Like you've read above, there's no one method to determine the price of your membership site. The best you can do is to take these elements into account and create the price that is reasonable for you in line with what your users will get from it.
and if you're looking for a place to build an amazing members-only community which permits you to offer classes, host discussion forums streaming live, or connect with your members via apps, try it for free!