Why this is the perfect time to start charging for website
subscriptions
Why this is the perfect time to start charging for website
subscriptions
by Peter A. Schaible
If you're a writer, researcher, subject matter expert,
enthusiastic hobbyist, or an authority on almost any topic,
there has never been a better time to start your own
subscription website or online newsletter.
And if you're already publishing a hobby website, now is the
ideal time to convert at least a portion of the content to
fee-paid access.
Smart website owners are now realizing just how valuable their
hard-earned knowledge is to others. Much of the information that
used to be available for free to anyone and everyone on the
World Wide Web is moving behind closed doors, accessible only to
paying subscribers.
Savvy writers and publishers are not giving it away anymore.
They're setting up profit-driven, members-only websites and
building online communities of subscribers who value their
knowledge. Perhaps surprisingly, resistance to paying for
content is gradually melting away.
The end of free
This trend away from websites offering free information and
toward a subscription, or pay-for-access business model, has
several causes.
First, only a few websites operated by big companies can afford
to provide valuable content without being compensated. Some of
them can do it for the public relations value, but they are the
exception.
The rest of us can't be so generous. And trying to recapture our
expenses by selling advertising on our websites has failed to
pay the bills. Online advertising and click-through rates are on
the decline.
Second, many people are now more than willing to pay to learn
what you already know, as thousands of online publishers of
subscription websites have already proven.
Why subscribers are ready to pay
The Internet has enabled people with similar interests to find
each other and form online communities. Whether your interest is
in politics, gardening, or model railroading, the Internet
enables you to connect to others who share your enthusiasms and
values.
But in the current political and social climate, there is
heightened anxiety and concern about privacy. If you previously
contributed to public online discussion forums, you may now be
feeling vulnerable. You never know who is lurking and reading
your comments, or gathering information about you. One frequent
concern: what spammers are harvesting your e-mail address?
However, in the seclusion of a subscribers-only website, you
feel more protected. You can share ideas with an affinity group
of like-minded people with less fear of ridicule or
repercussions. The publisher moderates the forum and promises to
honor your privacy.
These concerns are not diminishing over time, they are
intensifying as people perceive the world -- and cyberspace --
as an increasingly dangerous place. The result has been a
proliferation of private, members-only, subscription websites
and online newsletters covering literally hundreds of diverse
and specialized topics.
Finding the right subscription business model
Coming up with the right topic for a successful subscription
website is usually the biggest stumbling block for those wanting
to get into this business. Choosing your site topic is a serious
issue, as the topic you select pretty much dictates your chances
of success with a subscription website.
Research by the Subscription Website Publishers Association
(http://www.SWEPA.com) shows at least five successful models for
subscription website topic selection. These include existing
print newsletter topics; trade and professional associations;
career advancement, personality based or insider tips; and
downloadable product libraries. For details go to
http://www.swepa.com/public/136.cfm.
As the Internet changes, it is creating moneymaking
opportunities for people who like to write, teach and otherwise
share their expertise. Your years of study, hands-on experience,
and tried and true wisdom could be worth a hefty income when
turned into an online community.
Online communities bring together people who are interested in a
common topic. They create value by providing insiders' secrets
that the group is eager to learn about. And best of all, the
members are willing to pay money to join.
Why having a subscription website on the Internet is so great
As the publisher of a subscription website, you have an almost
unfair advantage over other print publications that don't
operate on the Internet. Consider the benefits:
* Low cost of entry -- a computer, minimal software and Internet
access are all you need. * No or low rent -- work from home. *
Low overhead -- production and distribution costs are close to
zero. * No employees -- do it all yourself. * Operate from
anywhere in the world. * Access a worldwide audience. * Reach a
well educated, affluent market. * Offer a visually rich website,
with text, images, audio or video. * Sell and deliver digital
information products instantly. * Build loyal communities
through discussion groups, online events.
The next phase in the subscription website evolution
Information is increasing in value. Over the next several years,
the trend to information provided on the Internet by paid
subscription will continue.
A two-tier model for the dissemination of quality content is
emerging. Successful online publishers provide samples of their
wares for free, either on the public portion of their website,
or through a free, opt-in e-mail newsletter.
But to get down to the most valuable data -- the premium content
of secrets and the insider's tips and techniques -- subscribers
are learning that they have to pay. Information seekers are
getting accustomed to the change, just as they have learned to
pay for premium content on cable and satellite television.
The most successful online publishers will be those who can
strike the perfect balance between free and fee. The time to get
started with your own subscription website is now.
Peter A. Schaible is executive director of the Subscription
Website Publishers Association (http://www.SWEPA.com).
SWEPA exists to support online publishing by providing
education, training and industry recognition. Our goal is to
help members build successful, profitable subscription websites.
Copyright 2003 Subscription Website Publishers Association.
Permission to reprint is granted provided the references and
hypertext links to SWEPA are included.