Membership Pricing Models: How To Choose The Best Pricing Model For Your Membership Site

With so many different pricing models to choose from, how do you decide which model is best for your site? There are a few different things to keep in mind, and the type you select will depend a lot on how much time you can devote to the members. It will also depend on how easy it will be to add new content.

Here are a few tips to help you figure out which type would be best for your membership site, and why.

One Off Pricing
The one-off pricing model is a good idea if you are planning a membership site that will last for many years. If you plan this kind of membership and then close it in a year, due to lack of interest on your part  (or for any other reason), you will lose a lot of credibility in the eyes of your members.

Also, don’t forget that word gets around quickly on the Internet and your reputation can get tarnished very easily. You need to be deadly serious to establish a site like this, and prepared to do anything you can do to get it off the ground, and keep it rolling for many years to come.

Yearly Pricing
This pricing model has a harder time getting members due to the higher price that needs to be charged. Many people will not throw themselves into a one-year commitment, so you may have to offer a trial membership.

This will allow potential members to test run the site for a small amount before making any kind of final decision. Once they see your amazing content, they will make the decision to stay.

The advantage to this kind of membership is it allows you to make a lot of money at the beginning, which can be used as capital and invested back into your site. You are going to have to offer high quality content in order to keep your members happy, and continue offering it on a regular basis.

You will not have the same time constraints, however, of a monthly or weekly membership, since your site would not have to meet the same content addition deadlines.

Quarterly Pricing
This is the less popular form of pricing, because people are not used to thinking of making payments on a quarterly cycle, and can be quite surprised to see their membership dues coming out of their account.

Most people can wrap their heads easily around weekly, monthly or yearly pricing, but quarterly payments can knock them off their feet. In general, most people do not like surprise bills, especially if their budget is tight and they have to count every purchase they make. You may lose customers from this pricing method.

The best way to deal with this is to send out reminders to people with an autoresponder and remind them about the benefits of the membership, and that their payment is due soon.

You may also want to offer them a special bonus for being a devoted customer, or make an announcement about a new product that will be delivered within the next few weeks. Keep them hooked with exciting announcements and great content.

Monthly Pricing
By far the most popular form of pricing, the monthly membership, takes out payments on a set date each month, based on the day the subscriber originally signed up.

Many Internet customers are used to this kind of pricing model and it is easily accepted. You will have a responsibility of updating the site on a monthly basis or potentially risk losing all of your membership in the space of thirty days.

It is a big commitment to add quality material to your site monthly, and one you must intend to fulfill. Members will expect quality content in exchange for their payment; and to keep them happy, you will need to over-deliver for many months to meet their expectations.

Weekly Pricing
This is a high maintenance site to maintain, as you will have to continually update your material. Even one slip of delivering less-than-expected material for one week can destroy your membership base.

The strain of keeping up with such a site can be difficult; and the only time this would be recommended is if it is set up to run on a temporary basis only. If it is designed to run for two to three months only, and you have a plan for great content, then this can be the start of a wonderful relationship between you and your subscribers.

Give them exactly what they want and more during the set time period, and they will come running back to you for further products down the road.

If you are just starting a membership site, then you should be aware of these various pricing models before choosing your membership software. Although some software offer all of the five different membership options, some only offer one or two.

Setting up a profitable membership site involves a lot of planning, but once set in place it has the potential to earn you a solid income for many years to come. It is a future investment that is worth the time and effort of the initial planning.

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