How do you price a Membership site in 2022?
If you've developed an online membership website or you're thinking about it since you're excited by the possibilities of a model for community-based business It's great! These sites are fantastic with the ability to scale in ways you won't see anywhere else within the creation economy.
Imagine the idea. Imagine the possibility of bringing together an entire group of people in something that matters for you as well as them and guide them through the change they're interested in. That's what you can do with the membership sites.
But one of the hardest tasks to begin with is working out how much to actually cost for your product. How do you know what is the best price, so you don't be A. Working for nothing or, B. charging so much that the audience is unable to pay.
It's good to know that we have the information. So in this article, we'll go over the lessons we've learned on how to price an online membership website from our study of 12,000 . (Don't think about it, if you want to start the creation of your personal Mighty Network, you can test it out for free! )
In this article
1.1. Paid plans are sold
1.2. It's not necessary to have millions of followers
1.3. Growth is organic
1.4. Paid membership drives engagement
2. Average membership site price for a Mighty Network
3. Questions to consider in determining the price of a membership site
3.1. Will it be scalable?
3.2. How does it fit within your revenue model?
3.3. How much do you require to continue?
4.1. Members must be properly invested
4.2. Value-based pricing
4.3. Take into consideration your member's options
4.4. Prices based on income targets
4.5. One-time vs recurring fees
4.6. Membership Churn
What we can see in our data
Paid plans are sold
If you're nervous about choosing an pricing plan to your membership website or putting off potential customers, let's put your mind at rest. Our data shows that, the sites that have paid plans available, they are able to sell paid plans. 77% of those that offer the option for payment are selling. That means your chances to sell your membership extremely high! This is a good thing!
In the event that you're contemplating a freemium business model which allows people to sign up for free membership and then purchase upsells for a fee, you're in luck here too. The Freemium model still has a 70% conversion rate of their product.
There is no need for millions of followers
Many of us are selling memberships to their communities that do not have huge followings. 53% of them are less then 10,000!
The growth process is organic
Within the framework of a Mighty Network, the Host can choose to let members invite friends to join the community. In a paid community, this organic growth with the members inviting their friends is twice the rate it is in a free community.
Paid membership drives engagement
It is a well-known fact that people are able to appreciate what they pay for, and this is true of memberships too. The level of engagement with our paid membership communities. And you don't need to update 100 times per week to see it happen. Most successful hosts on just need to update at least 2-4 times per week in order to maintain their community's health.
The average cost of a membership site for an Mighty Network
The average price of a Mighty Network is $39.55/mo. In many larger communities, the membership fees support the creator in full time. However, even for a smaller community, this fee is a fantastic side hustle AND an incredibly efficient monetization strategy over almost all other options within the economy of creators. It would take tens of thousands to billions of views on social media channels to match this income.
and with the capacity to take orders over $1000 You also have the opportunity to explore expensive courses and memberships without having to add another system.
Questions to consider when evaluating the cost of membership sites
In case you're trying determine what the right price is for your site's membership The data we have available shows an average of between $15-$40. It doesn't mean you shouldn't charge more in some cases however, it's going to require an approach.
Here are some questions to lay the groundwork for pricing your own site:
Will it be scalable?
Each membership site isn't made to be the same. Some can scale endlessly, and we have communities with hundreds of thousands of members within them. These massive communities allow creators a lot of latitude to charge less for membership as they're earning a return upon the scale.
But if you were running a community that's small in size, for example group coaching or a mastermind community that will be limited in members you can serve, you probably need to raise the price.
How does it fit into your business model for revenue?
The price of a membership site isn't an end-all-beall solution. Consider it one of the components of your monetization model. If you are offering upsells like courses or premium group access, then you'll prefer to keep the price of membership as low as you realize that it's much easier to offer upsells to existing members of your group than to make your product available to the public.
If you sell an item that is physical and your site's membership program supports You could decide to provide a community for customers on a free basis or at the cost of a modest fee, to assist customers use the product. Find out how any member income fits into your current and future revenue streams.
What is the amount you have to spend in order to continue?
It's easy to become excited about the possibilities with the possibility of monthly recurring income. Since the internet is filled with stories of people earning tons of money doing minimal work, it's simple to think your community will make you rich.
and we are hoping it's true!
If there aren't a ton of people signing up the first month, what will you do to continue?
If you're looking to put work into the community each month How much the income you'll need during that period?
As an example, let's imagine you're sure you'll get 15 members (or perhaps you could offer 15 memberships in advance). Even if you only had those 15 members for the following year, what much would you have to charge them to make the community worth your investment?
Pricing Considerations
You've probably guessed, when trying to figure out the best way to charge a membership site it's impossible to find a standard approach that will work for everyone. You'll be considering a lot of factors that are unique to your. Here are some final things to consider:
Members have to be actively involved
We have already mentioned among the many things we see again and again is that people appreciate the services they are paying for. This means that, while this may seem counterintuitive community that have a fee generally have healthier members and higher member engagement.
Pricing based on values
A known and tried methods to consider pricing is through thinking about it. Do not think about how many hours that you invest in something in order to make it. Think about the worth it's going to provide to the members who join. For example, if an entrepreneur is a part of a community and gains the experience as well as the guidance, instruction, and motivation for growing their business to zero to $100k per year, how much will that community's membership mean to the person joining?
Think about your member's choices
What ELSE do your members need to shell out to enjoy the results they'll get from being in your community. If you're in an exercise center that aids individuals achieve their health goals think about what they'd need to shell out to achieve those goals otherwise. Personal trainers? A gym membership?
Think about the amount members be required to cover to accomplish their goals through different methods.
Pricing is based on the income goals
Another aspect that may impact your pricing structure for your membership site is the amount you want to earn. Let's say you wanted to earn $4,000 a month to leave your job. You can use this figure to calculate backward and establish revenue targets.
So for example, if you were pretty confident there would be 100 members who would be interested in joining your community You could set a price of $40. If you were hoping to earn $4,000/mo as a group coach, you might decide you do not want to create a group that is 100 members. If this is the case, you could move backwards based on your capacity. If you know that you could manage 6 groups per month that have 8 participants, your fee for membership is a mathematical equation: 4000 6 x (6 x 8) = $83.33/mo.
One-time vs recurring fees
The majority of the information we've provided in this article is based on an idea of regular month-long membership fees. There are occasions where it makes more sense charging a single fee. For example, if you offer a highly valuable course that people can do in two weeks that comes with your membership it is possible that some people may choose to enroll in the course, before deciding to quit. It could be the case where something like a one-time cost that provides the benefit of 6 months of complimentary membership makes more sense.
Member churn
New sites won't know the number at this point, however, once you've been up for a while you can get a sense of how much your member churn rate isfor e.g. how long your members are for on average and the number of members who leave every month. You can use this to guide your pricing strategies for achieving a specific price per participant.
Conclusion
As you've seen above it's impossible to find a definitive solution to the question of how much you should charge for your membership site. One of the best options is to take all of these factors into consideration and come up with a price that makes sense for you in line with what your users are getting from the site.
If you're searching to establish an incredible member-based network , that permits you to offer courses, host discussions, live stream, and engage your members with an app, come try at no cost!