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How to optimize the pricing
of your membership site
For more details, listen to http://membersonly.fm
Rule #1
You are in control of your pricing
For more details, listen to http://membersonly.fm
Step #1
Determine the “cost” of your site
For more details, listen to http://membersonly.fm
Cost vs Expenses
Costs…
Credit Cards Fees
Customer Support
Hosting
Contribution Time
For more details, listen to http://me...
Your “costs” should be
10%-25% of total revenue
For more details, listen to http://membersonly.fm
Step #2
Find your Target Revenue
For more details, listen to http://membersonly.fm
Revenue Targets
$ Costs / % Total = Target Revenue
For more details, listen to http://membersonly.fm
10% 25%
Revenue $1,00...
Step #3
Create an Anchor Product
For more details, listen to http://membersonly.fm
What is an Anchor Product?
The Ultimate Offer You Provide
Very expensive
Highly exclusive
Includes everything and more
For...
Step #4
Create a low & mid priced offer
For more details, listen to http://membersonly.fm
Low & Mid Offers
Based on your Anchor Price
Includes some of the anchor features
Meets basic wants/goals of the customer
L...
Step #5
Find the number of subscribers
For more details, listen to http://membersonly.fm
First, find your average price
Your average purchase price is…
The price between your mid & low price.
So if your mid pric...
Based on your average…
Divide your target monthly revenue by
the average price.
For more details, listen to http://members...
Subscriber Projections
For example…
If your target is $33,333 per month in revenue and your
average price is $37/month, th...
Step #6
Review your costs, one more time.
For more details, listen to http://membersonly.fm
Based on the projected subscribers, can
your costs cover that number?
For more details, listen to http://membersonly.fm
For example, can you support 900
subscribers based on a cost of $100,000
per year?
For more details, listen to http://memb...
Yes!
Then you are good to go.
No!
Then increase your price or lower your costs.
For more details, listen to http://members...
How you present your pricing
matters, a lot.
For more details, listen to http://membersonly.fm
The higher the price, the more
important the design.
For more details, listen to http://membersonly.fm
Emotions matter more than
than the price of features.
For more details, listen to http://membersonly.fm
Is your price high enough to
offer a discount?
For more details, listen to http://membersonly.fm
And one more thing…
For more details, listen to http://membersonly.fm
Listen to…
http://membersonly.fm
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How to optimize the pricing of your membership website.

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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.

Published in: Marketing

How to optimize the pricing of your membership website.

  1. 1. How to optimize the pricing of your membership site For more details, listen to http://membersonly.fm
  2. 2. Rule #1 You are in control of your pricing For more details, listen to http://membersonly.fm
  3. 3. Step #1 Determine the “cost” of your site For more details, listen to http://membersonly.fm
  4. 4. Cost vs Expenses Costs… Credit Cards Fees Customer Support Hosting Contribution Time For more details, listen to http://membersonly.fm Expenses… Marketing & Ads Affiliate Commissions Development Rent & Internet & Other
  5. 5. Your “costs” should be 10%-25% of total revenue For more details, listen to http://membersonly.fm
  6. 6. Step #2 Find your Target Revenue For more details, listen to http://membersonly.fm
  7. 7. Revenue Targets $ Costs / % Total = Target Revenue For more details, listen to http://membersonly.fm 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. 8. Step #3 Create an Anchor Product For more details, listen to http://membersonly.fm
  9. 9. What is an Anchor Product? The Ultimate Offer You Provide Very expensive Highly exclusive Includes everything and more For more details, listen to http://membersonly.fm
  10. 10. Step #4 Create a low & mid priced offer For more details, listen to http://membersonly.fm
  11. 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 For more details, listen to http://membersonly.fm A basic guide…
  12. 12. Step #5 Find the number of subscribers For more details, listen to http://membersonly.fm
  13. 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. For more details, listen to http://membersonly.fm
  14. 14. Based on your average… Divide your target monthly revenue by the average price. For more details, listen to http://membersonly.fm
  15. 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 ) For more details, listen to http://membersonly.fm
  16. 16. Step #6 Review your costs, one more time. For more details, listen to http://membersonly.fm
  17. 17. Based on the projected subscribers, can your costs cover that number? For more details, listen to http://membersonly.fm
  18. 18. For example, can you support 900 subscribers based on a cost of $100,000 per year? For more details, listen to http://membersonly.fm
  19. 19. Yes! Then you are good to go. No! Then increase your price or lower your costs. For more details, listen to http://membersonly.fm
  20. 20. How you present your pricing matters, a lot. For more details, listen to http://membersonly.fm
  21. 21. The higher the price, the more important the design. For more details, listen to http://membersonly.fm
  22. 22. Emotions matter more than than the price of features. For more details, listen to http://membersonly.fm
  23. 23. Is your price high enough to offer a discount? For more details, listen to http://membersonly.fm
  24. 24. And one more thing… For more details, listen to http://membersonly.fm
  25. 25. Listen to… http://membersonly.fm

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