4 Reasons Why You Should Start a Membership Website
Membership websites are quickly becoming common place. More and
more consumers are willing to pay for information that is
specific to their interests. The "give it all away for free"
website model is becoming more difficult to prosper at.
Advertising cost are down and competition is fierce.
So why is the "Pay for Content" model such an attractive one?
1. Quick and Low Cost Startup: Membership Websites can
be up and running in just a couple of weeks, depending on your
computer and html skills, maybe less. The cost associated with
starting a membership site is pretty small compared to most
other business models. In most cases you can start one with just
a few hundred dollars.
2. High Profit Percentage: Membership Websites have
fairly low overhead and do not necessarily need any employees
other than yourself. That means after expenses such as
membership software, hosting, etc... you average from 50% to
80%. This extremely high profit percentage.
3. Continual Income: One of the biggest problems business
face is maintaining income and cash flow on a continual basis.
Constantly seeking out new customers is time consuming and
expensive. With a Membership Website you can have a steady
income month after month without having to continually get new
customers.
4. Quick Turn Around on Investment: One of the biggest
advantages of a Membership site is the quick return on
investment possibilities. For example... Let's say it costs you
$300 to get started and around $100/month to maintain the site.
If you only charged $19.95/month for a subscription it would
only take you 16 subscribers to cover the costs of start up. Not
only that, but every month after that you would be making $200 a
month from the same 16 subscribers... That's $2,400 a year. That
may not sound like a lot of money but what if you had 50 or 100
subscribers. Your income quickly rises to thousands a month.
Don't think you know anything people are willing to pay
for...well you do. Their are membership website on every topic
from business to fishing to socks (yes that's right socks, like
the one's on your feet). The good news is that the smaller niche
market is for your information the more likely people with be
willing to pay for it. Not only that but it usually means you
can charge more as well.