Business and Investment Center

Knowing how much your average customer is worth enables you to determine how much resource you can afford to put into attracting new members. You can use the lifetime member value to create a budget for promoting and developing your site that ensures you aren’t spending more than you are making. Keeping a database with detailed records of your members’ purchases will allow you to determine a more accurate lifetime member value over time. This can help you to adjust your prices and strategies to maximize your profit without losing your customers. You can monitor the effect that changes to your site have on your lifetime member value.

As subscription businesses, membership sites rely on recurring business. Once your membership site is fully functioning, about 75% of your sales will come from your current subscriber base, so you will want to give a great deal of thought to your rebilling strategies.

There are two main models to consider when determining your rebilling strategy:

1. Optional renewal

If you use optional renewal, your members will be notified that their membership is due to expire, and will be given the option to renew it. If you use this method, you will want to make it as easy as possible for your members to renew, and send them at least two reminders.

2. Automatic renewal

Automatic renewal is also known as continuous service. If you choose to use this method, your members will receive a notification that a subscription payment has been debited from their account. This has the obvious advantage over optional renewal in that your members do not have to make any effort to renew their membership. On the contrary, they have to make an effort not to renew it.

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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.

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