What price should you charge for a membership Site in 2022
If you've made a decision to create the site for membership 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 expand in ways you won't see anywhere else in the creator economy.
Imagine the idea. Imagine gathering groups of people around something that matters for you as well as them, to walk you through a change that they're interested in. That's the power of an online membership website.
However, one of the toughest aspects of starting out is figuring out what to actually charge for the thing. How do you know the right price point, so you don't get to the point of in the position of A. working for nothing, or B. charging so much that your audience runs away.
Good news is that we've got the data. So in this article, we'll explain the lessons we've learned on how to price the membership sites we found in our 12,000-plus respondents . (Don't think about it, if you would like to create with your very personal Mighty Network, you can try it for free! )
The article
1.1. Paid plans can be purchased
1.2. There aren't any millions of fans
1.3. Growth is organic
1.4. Paid membership drives engagement
2. Average membership site cost for a Mighty Network
3. Questions to consider when determining the cost of a membership website
3.1. Can it scale?
3.2. How does it work into your business model for revenue?
3.3. How much do you require to continue?
4.1. Members need to be invested
4.2. Value-based pricing
4.3. Think about your member's options
4.4. Prices based on the income goals
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 a pricing strategy for your site's membership in order to frighten people away, let's put your mind at rest. The data we have gathered shows that the sites that provide paid-for plans, they are able to offer paid plans. 77% of that have the option for payment are making sales. This means that your odds that you sell memberships extremely high! That's a plus!
And if you're thinking of a freemium business model that allows users to get a the free service and later make upsells on their behalf, you're in luck here as well. The Freemium model still has the highest conversion rate at 70% to their products.
It's not necessary to have thousands of fans
Most of them members are selling memberships to communities that do not have huge followers. 53% have less than 10,000 fans!
The growth process is organic
In the framework of a Mighty Network, the Host can choose to let members invite their friends into the network. For a community that is paid it is possible to see this growth organically with the members inviting their friends is twice the rate that it happens in a free community.
Paid membership drives engagement
The old adage is that people appreciate what they pay for, which is the case with memberships, too. There is a greater amount of interaction with our memberships that are paid. It's not necessary to post 100x a week to make it happen. Most successful hosts on only need to post 2-3 times per week in order in order to maintain their community's health.
Cost of membership for a typical site for a Mighty Network
The cost of membership for a Mighty Network is $39.55/mo. For many of the larger communities, the membership fees support the creator full-time. Even in a small community, it's an amazing side hustle and an incredibly efficient monetization strategy that almost every other alternative in the creator economy. It would take tens of thousands or millions of viewers on the social media platforms to earn this amount.
And with the ability to take orders over $1000, you also have the opportunity to explore expensive programs and memberships without having to add another platform.
Things to think about when evaluating the cost of membership sites
If you're trying to find out what price you should charge for your membership website The data we have available shows that the average cost is between $15 and $40. This doesn't mean you can't be able to charge higher prices in certain instances, but it will take some planning.
Here are a few questions to get you started on pricing your site's own price:
Will it be scalable?
Every membership website is not all created in the same way. Certain sites can grow indefinitely as well as have communities of many thousands of people within them. These huge communities give creators a lot of latitude to charge less for membership as they're earning a return upon the scale.
But if you were operating a community that was limited in scale, say a group coaching or mastermind community that will be limited in members that you are able to serve, it's likely that you'll need to charge more.
Does it make sense into your business model for revenue?
The price of a site that is a member's club cannot be an end-all-beall solution. It should be considered as a whole part of your monetization model. If you're offering upsells for example, courses or premium group access, you might wish to keep the cost of membership at a low level, knowing that it's easier to upsell to people already in your group than to make your product available to the public.
If you're selling a physical product that the membership site is able to support, you might choose to offer a customer community for free or for a small fee to help users use your product. Figure out how any membership income fits into your current and future income streams.
How much do you need to keep going?
It's easy to become enthusiastic about the potential of regular monthly income. The internet is filled with stories about people who make a ton of money doing minimal work, it's simple to believe that your neighborhood will be your road to riches.
And we hope it is!
But, if you don't see a lot of new users signing up in within the first month, what will you do to continue?
If you're looking to work in a community every month, what's your baseline of the income you'll need during that duration?
For instance, imagine you're sure you'll get 15 members (or possibly presell 15 memberships). Even if you just fifteen members the following year, what many would you be able to charge them to ensure that the group is worth your investment?
Pricing Considerations
As you've likely gathered that when you're trying to decide the best way to charge a membership site, there's no one-size-fits-all approach. There are a variety of different factors unique to you. These are a few final considerations to think about:
Members need to be actively involved
Like we mentioned earlier One of the issues we see again and again is that people are able to appreciate the services they are paying for. It means that even though it may be counter-intuitive the communities that are charged tend to be healthier and enjoy 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 you put into something in order to make it. Think about the worth it's going to have to the people that join. In the example above, if an entrepreneur joins a community and receives the information of teaching and support for growing their business to zero to $100k per year, how much will that community's membership mean to them?
Think about your member's alternatives
What ELSE do your members need to spend money on to receive the results they'll get through your organization. If you're an exercise center that aids individuals achieve their health goals, consider what they'd have to shell out to achieve these goals without. A personal trainer? A gym membership?
Consider what members would have to pay to achieve their objectives through other methods.
Pricing is based on the income goals
One of the other considerations that could impact the pricing strategy for your membership website is the amount you want to earn. Let's say you wanted to make $4,000/mo in order to quit your day job, you could use this amount to go back and determine your revenue objectives.
So for example, if you believed you could find 100 people to join your community, you could charge $40. If you wanted to make the equivalent of $4,000 per month working as a group trainer You might be able to decide that you do not want to create a group that is 100 members. If this is the scenario, you can work backward depending on the capacity you have. If you know that you could run 6 groups per month that have 8 participants, your fee for membership is an equation of math: 4,400 / (6 8) equals $83.33/mo.
One-time vs recurring fees
The majority of the information we've provided above is based on a model of recurring fee for memberships that are monthly. There are occasions where it makes more sense charging a single fee. If, for instance, there is a valuable course that people can do within two weeks, and it is included in your membership You might think about the possibility that some people may choose to enroll in the course, and then leave. This could be a case in which a once-off cost that provides 6 months of free membership would be more appropriate.
Member churn
Websites that are new won't have the number at this point, however, after you've been online for a few months, you'll know how much your member churn rate is(e.g. e.g. the length of time members remain 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
Like you've read above There's not a single method to determine the price of your membership website. The best you can do is to take all of these factors into account and create an appropriate price to you, based on the value your members will get from it.
And if you're looking for a place to build an amazing member-based network which allows you to sell courses, host discussions or live streams, as well as reach your members through apps, try it for free!