How do you price a Membership
If you've made a decision to create an online membership website or you're considering it because you're intrigued by the potential of a community business model, that's awesome! These sites are fantastic and have the awesome capabilities to scale in ways unlike anything else in the creator economy.
Think about it. Imagine the possibility of bringing together an entire group of people in something important for you as well as them, to walk them through the change they're interested in. That's the power of a membership site.
But one of the hardest aspects of starting out is figuring out what to actually charge for the thing. What is the appropriate price so you don't be in the position of A. Working for nothing or, B. Charging so much that the audience is unable to pay.
Good news is that we've got the data. This article we'll walk you through the lessons we've learned on pricing a membership site from our survey of 12,000 . (Don't overlook, if would like to create your personal Mighty Network, you can take a trial for no cost! )
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 per Mighty Network
3. Questions to consider when pricing a membership site
3.1. Does it scale?
3.2. How does it work into your business model for revenue?
3.3. How much do you require to continue?
4.1. Members must be properly invested
4.2. Value-based pricing
4.3. Consider the options of your members
4.4. Prices based on the income goals
4.5. One-time vs recurring fees
4.6. Member Churn
What we can see in our data
Paid plans offer
If you're nervous about choosing an pricing plan to your membership website or putting off potential customers then let us put your fears at ease. The data we have gathered shows that the sites that provide paid-for plans, they are able to sell plans that are paid. 77% of those that offer the option of payment making sales. That means your chances of selling your membership extremely high! This is a good thing!
In the event that you're contemplating the freemium model of business that allows users to get a free access and purchase upsells for a fee You're in luck too. The Freemium model still has the highest conversion rate at 70% for their services.
It's not necessary to have millions of followers
Most of them 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 is able to allow users to invite their friends into the network. In a paid community the organic growth of the members inviting their acquaintances is two times as fast that it happens in a free community.
Paid membership drives engagement
It is a well-known fact that people are able to 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. And you don't need to be posting 100 times a week to see it happen. The most popular Hosts just have to publish at least 2-4 times per week for their communities to stay alive.
The average cost of a membership site for an Mighty Network
The cost of membership for a Mighty Network is $39.55/mo. In many larger communities, the membership fees support the creator on a full-time basis. However, even for a smaller community, this price means an amazing side hustle and a way better monetization model over almost all other options within the economy of creators. It would take tens of thousands to millions of views in social media to earn this amount.
And with the ability to take orders over $1000 Additionally, you have the opportunity to explore the most expensive programs as well as memberships, without the need to integrate another system.
Considerations to make when evaluating the cost of membership sites
So if you're trying to figure out exactly what price you should charge for your site's membership, our data shows an average price of $15-$40. However, this doesn't mean that you cannot charge more in some cases However, you'll need some strategy.
Here are some queries to help you get started pricing your own website:
Can it scale?
Every membership website is not created to be the same. Some can scale endlessly, and there are communities that have hundreds of thousands of members who are members. The huge community gives the creators plenty of freedom to offer membership for less since they're recouping costs based on the size.
But if you were managing a group that is limited in scale, say group coaching or a mastermind group in which you will be limited in members that you are able to serve, it's likely that you'll need to charge more.
Does it make sense within your revenue model?
The cost of a site that is a member's club cannot be considered a standalone thing. It should be considered as a whole part of the monetization strategy. If you're offering upsells like courses or premium group access, you might prefer to keep the price of membership low, recognizing that it is easier to sell to existing members of your network than to sell products outside.
If you're selling an item that is physical and 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 income fits into your current or planned revenue streams.
How much do you have to spend in order to continue?
It's easy to become fascinated by the possibility of regular monthly income. Since the internet is filled with tales of individuals making a lot of money while doing very little, it's easy to think your community will become your path to wealth.
and we are hoping it's the case!
But, if you don't see a lot of people signing up within the first month, what do you need to keep going?
If you're looking to work in a community every month, what's your baseline of income you'd need for that duration?
As an example, let's imagine you're sure you'll gain 15 members (or possibly 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 give the community a worth investment?
Pricing Aspects
As you may have gathered that when you're trying to figure out what to cost a membership site There's not a universal formula that works for all sites. It's a matter of weighing a number of unique factors to your. Here are some final things you should think about:
Members need to be invested
We have already mentioned One of the issues that we observe repeatedly is that people value what they pay for. It means that even though this may seem counterintuitive, communities that charge something generally have healthier members and more engaged members.
Value-based pricing
One of the 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 benefits it'll provide to the members that join. In the example above, if an entrepreneur is a part of a community and gets the knowledge, teaching, and encouragement for growing their business to zero to $100k per year, how much is the value of that membership to them?
Take into account your members' options
What ELSE do your members need to shell out to enjoy the benefits they'll gain through your organization. If you have the fitness center to help individuals achieve their health goals take a look at what your members would have to pay for to reach the goals they've set for themselves. Personal trainers? A gym membership?
Think about the amount members need to spend to reach their goals by other means.
Pricing based on income targets
Another aspect which could affect your pricing structure on your membership website could be the amount you want to earn. For instance, if you want to earn $4,000 a month to be able to quit your current job. You can use this number to work backward and set revenue goals.
If, for instance, you were pretty confident there would be 100 members willing to be part of your group and you wanted to charge them $40, you could do so. If you want to earn $4,000/mo as a group coach You might be able to decide that you don't want a community that is 100 members. In this scenario, you can reverse your work based on your capacity. If you knew that you can run six groups a month with 8 people in each, your membership fee becomes a mathematical equation: 4,000 6 x (6 x 8) equals $83.33/mo.
One-time vs recurring fees
The majority of the information we've provided in this article is based on the concept of fee for memberships that are monthly. There are occasions when it's more appropriate to charge a one-time fee. If, for instance, you have a high-value course that can be completed in two weeks that is included in your membership it is possible that some of them might decide to attend the class but then decide to leave. This could be a case where something like a one-time cost that provides six months of membership for free is more sensible.
Membership churn
The new sites will not know the number at this point, however, after you've been online for some time, you'll be able to know how much your member churn rate is(e.g. e.g. how long members stay on average and how many leave every month. It can determine your pricing strategy in order for achieving a specific value per member.
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. One of the best options is to take all of these factors into consideration and come up with the price that is reasonable for you in line with the value your members are getting from it.
and if you're looking for an ideal location to create an incredible member-based community , that permits you to offer classes, host discussion forums, live stream, and connect with your members via the app, you can try at no cost!