If you are struggling with how to find the right pricing model for your membership website, then this presentation will help. It provides a framework that you can use to set membership pricing levels at a premium; helping you increase your revenue and profit margins. This presentation is the companion piece to the Pricing Podcast episode from MembersOnly.fm.

1. How to optimize the pricing
of your membership site
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2. Rule #1
You are in control of your pricing
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3. Step #1
Determine the “cost” of your site
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4. Cost vs Expenses
Costs…
Credit Cards Fees
Customer Support
Hosting
Contribution Time
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Expenses…
Marketing & Ads
Affiliate Commissions
Development
Rent & Internet & Other

5. Your “costs” should be
10%-25% of total revenue
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6. Step #2
Find your Target Revenue
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7. Revenue Targets
$ Costs / % Total = Target Revenue
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10% 25%
Revenue $1,000,000 $400,000
Costs $100,000 $100,000
Gross Profit $900,000 $300,000
Profit before you
pay expenses

8. Step #3
Create an Anchor Product
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9. What is an Anchor Product?
The Ultimate Offer You Provide
Very expensive
Highly exclusive
Includes everything and more
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10. Step #4
Create a low & mid priced offer
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11. Low & Mid Offers
Based on your Anchor Price
Includes some of the anchor features
Meets basic wants/goals of the customer
Low Price = 10% - 25% of anchor price
Mid Price = 30% - 49% of anchor price
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A basic
guide…

12. Step #5
Find the number of subscribers
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13. First, find your average price
Your average purchase price is…
The price between your mid & low price.
So if your mid price is $47/month and
your low is $27/month, then
your average price is $37 / month.
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14. Based on your average…
Divide your target monthly revenue by
the average price.
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15. Subscriber Projections
For example…
If your target is $33,333 per month in revenue and your
average price is $37/month, then
your subscriber projection is 900.
( $33,333 / $37 = 900 )
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16. Step #6
Review your costs, one more time.
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17. Based on the projected subscribers, can
your costs cover that number?
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18. For example, can you support 900
subscribers based on a cost of $100,000
per year?
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19. Yes!
Then you are good to go.
No!
Then increase your price or lower your costs.
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20. How you present your pricing
matters, a lot.
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21. The higher the price, the more
important the design.
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22. Emotions matter more than
than the price of features.
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23. Is your price high enough to
offer a discount?
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24. And one more thing…
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25. Listen to…
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