Why You Need A Membership Site (Value Addon Review)
Do you have a plan to generate passive income online? Income that comes in whether you are working or not?
Today I’ll show you why you need one, and how to set it up.
Every small and home business owner needs at least one passive income source. One of the best ways to do that online is with a membership site.
There are countless customers in just about every niche online, who are willing to pay anywhere from $10-$40 a month or more, for real help with something they are passionate about.
Customers are happy to pay a fair price for solid training, advice and insight, product rights, and much more.
The very first year I opened a membership based site it easily earned more than six figures all by itself. Since then I’ve gone on to open other subscription-based web properties that earned six figures all by themselves.
The numbers just make so much more sense than selling products for a one-time fee.
For example, let’s say you offer a product for $27 and make just one sale a day. We’ll call it 30 sales a month and 360 sales over the course of a year. You’ll earn $9,720.
However if you expand a little on the product, maybe convert some of it to video and offer personal help along with the content, you can easily package it into a membership site instead.
You can then sell access to the membership site for $27 a month.
Sure, less people may buy it because of the monthly fees, but I’ve found that the number is not significantly lower. Let’s say that instead of 30 info-product sales a month you get 20 new monthly members.
That’s $540 the first month and then $540 a month additional for the whole year. By the end of the year your earnings would look like this…
|Month||New Revenue W/ 20 Sales per mo.||Total Monthly Revenue|
When you total up the year’s earnings, you’ll see it adds up to a whopping $42,120. That’s more than 4X what you would have making one-time sales.
Of course you need to factor in churn rate and attrition. And that will cut those income estimates. The fact is, people will drop out no matter how good your membership value is.
Member sites with below average value for the cost can see dropout rates of close to 50% within the first three months each member joins. However member sites with very good value get less than 20% drop outs. And some members stay on-board with you for years and years.
I won’t go into all the attrition and churn rate math, but assuming your site loses 25% of members by their third month of membership, at the end of the year you would still have roughly 100 members paying $27 a month.
That’s a nice little recurring income stream, especially when you have a handful of web properties doing that. When you compare it to selling products for a one-time fee, you would still easily be earning 3x to 4x what you would with the non-membership model.
Of course these are small numbers compared to what many web properties experience. I’ve had new member sites get more than 200 members the first month alone. That was before I opened an affiliate program and ramped up sales even faster!
That’s right, another great bonus you get with your own membership site is the ability to offer residual income to affiliates who promote for you. Give them 50% of the monthly dues for all the members they refer and you can expand your program easily.
So this all leads us to the logical question…
“How do you get your own membership site?”
Well, there are about 50 different ways to do it. Of course, you’re going to need content, but that is usually the easy part. Find something you’re passionate about and start shooting videos. Or just BUY content with private label rights.
Next, you’ll need to deal with the membership site technical details.
You can buy a member site script and have programmers install it. Or you can buy a WordPress membership site plugin and do it yourself. Or, there are now web based solutions available to simplify things further.
I’ve done all three. And I can tell you from experience, that unless you are tech savvy, you want the simplest solution possible. Because it’s the technical hurdles that keep most people from achieving their goal of a profitable member site.
That’s why I recommend you have a look at this new platform — in my opinion, the simplest member system there is.
There’s nothing to download or install. No site to build. Heck, you don’t even need web hosting!
You simply log in and complete 3 steps. When you’re done, you’ll have a beautiful membership site.
Step 1: Upload your content (audios, videos, pdfs, images … etc) – They host everything for you and even pay your Amazon S3 bill for you.
Step 2: Set your price using the built in shopping cart. (IE: How much do you want sell access to your content for?)
Step 3: Configure your sales page using the SWEET built-in sales page creator that an 8 year old can complete.
“YES, It’s literally that easy”.
Here’s what some people using this platform are saying about it…
You can have a complete membership website set-up within 10-15 minutes .
No messy plugins to install, no custom code to write, no web hosting to configure.
No matter what membership site solution you choose, here’s hoping you get lots of members!
To your Success,