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.

Label :

How you set up your site has a tremendous amount on the money that you will make. Free membership sites do very well with Adsense revenue and product revenue. However fee based sites stand to make money in a variety of ways. Here are your subscription options and how to make the most of them:

Standard Monthly Subscriptions are the normal course of action for a membership site. They work well for a well maintained website where the content is always fresh and you’re always providing value. (If it isn’t, members won’t renew.) The standard monthly membership site looks like this:

• Members have access to a large amount of quality information about your niche subject, whether that is in the form of interviews, audio course or articles.
• Members are able to access to a forum where they discuss aspects of your niche subject, ask advice, and network with people who are also interested in that niche subject.
• Members have access to some free downloadable products such as e-books, seminars and audio files.

Upgraded subscriptions, like silver, gold, and platinum, are a profitable alternative to the standard monthly subscription model. It is one way of initially wetting the appetites of your members and to get them involved in the site so that they spend more money in the future. Don’t forget to lure your subscribers into upgrading their membership by offering benefits and making upgrades available often. A one-time fee joining fee model works well if you plan on continually offering content, valued added resources, and multiple streams of revenue.

First and foremost, don’t be afraid to charge subscribers what you’re worth even if you consider it to be fairly high. People know that they have to pay for quality and they’re willing to do it. Additionally, you know that your members are serious about belonging to your website. Make your site worth the money.

Label :