Business and Investment Center

Presumably, you have a membership website to make money or your thinking about starting a membership site to make money. Either way if you’re not taking advantage of your profit plans, you’re missing out. In this case, if you want a great and inexpensive way to increase membership site revenue and value, you can sell information products. Ebooks, reports, online classes, workshops, tutorials, audio files, videos, and even software can be created for a relatively low cost and sold for a tremendous profit. The great thing about many of these products is that they are instantly downloadable by your members. This means that they get instant gratification and you don’t have to deal with the cost of production. Once your product is complete, it’s ready to go and can be distributed an unlimited number of times.

Besides that, make maximum revenue!

• Superior products result in superior profits. Make your e-book superior with a high level of research, writing, and graphics and illustrations.
• Promote early. Promote the e-book on your site and in your members’ forum. Put extracts from the book onto your site to get members excited about reading more.
• Offer incentives. Use your e-book as an incentive to subscribe to your site. If you give your e-book to members for free when they sign up consider offering them the book in installments or chapters to integrate them into your community.
• Weave affiliate links into your information products to ensure that they carry on producing revenue for you even after they have been sold.

Label :

The concept of lifetime customer value is an important factor in determining what your subscription prices are. You will not be able to accurately determine your lifetime member value until your site has been up and running for some time, but using educated assumptions to work out a potential lifetime customer value can be a very beneficial part of your business plan. In simple terms each member’s lifetime value is the average profit they will generate for you during the time they are a member of your site. Each of your members can create revenue for you in a number of ways:

· Initial subscription fee

· Repeat subscription fees

· Product purchases

· Affiliate purchases

· AdSense links

The more complex your site, the more factors there are to take into account. To calculate the lifetime value of a member you need to take the average initial subscription, plus the average revenue from further purchases (these include repeat subscriptions, purchases, click-throughs etc.), multiplied by the average number of repeat purchases in one time period (a month, a year etc.), multiplied by the average number of time periods a customer remains a member. Here is a simple example:

· Your members pay $50 for their one time subscription.

· They spend on average $20 twice a month on purchasing further products etc.

· Your average customer remains a member for 6 months.

· Your lifetime member value = 50 + 20 x 2 x 6 = $290

Don’t forget the power of loyalty. A loyalty scheme will encourage your customers to maintain their membership. Recognizing and rewarding your members’ loyalty is a great way to keep them subscribing to your site. If you choose to follow a loyalty scheme, you can publish details on your site, and you can enable your members to track their progress through your scheme in the same way as they can access their personal details.

Label :