Once you’ve decided to create a membership, one of the things you’ll need to determine is the price. How you price your membership is very important. You can turn away or bring in the right market based on the price. Price in and of itself doesn’t always indicate value, though; that’s for the members to determine. What you need to do is figure out what you want to charge based on the type of value and the number of members you want to attract.
Limited Memberships Mean Higher Fees
If you have a limited membership where you only let a certain number of people in the group at any given time, then your fee structure will be based on that. Figure out the time and effort the membership will take from you, how much you want to earn each month, and then use that information to determine the monthly fee.
For example, let’s say you’ve created a membership that you’re only going to allow ten people to join. In this membership you allow open office hours, a one-hour personal call each week, unlimited email interaction, a weekly webinar, and a monthly webinar on a topic of interest to the group. Plus, you have a private Facebook group for members current and past only.
You can go by the time it takes you to conduct all this work, or you can instead just determine how much you need and want to make. Let’s say you’ve decided you want to earn $100K a year with the membership. With only ten paying members allowed at any given time, you’ll need to charge about 833 dollars a month to each paying member to earn $100K a year.
Here’s the math:
Desired earnings 100K a year / 10 Members = 10,000K /12 Months = $833 per month, per member.
Unlimited Members Means Lower Fees
With unlimited members allowed, you won’t have time for the one-on-one work, so it’ll be hands off other than interaction in a private forum. So, let’s say your membership offers a learning center, with a new course added each month that relates to the niche, plus a group coaching forum. Through the membership you’ll offer other opportunities, but they’ll all be group format and no one-on-one activity. For example, you may offer a webinar monthly on a topic, as well as early intro to new products and services.
In this case, you need to find out how many potential customers you can attract to meet your goal of $100K a year. If the market has one million people in it, how many of those can you convert to paying subscribers? At $27.97 a month you’ll need about 298 members to meet the $100K a year goal.
You’ll need to study whether it’s a possibility or not. If not, you may have to raise or lower the price to ensure that you attract the right amount of regular members to the membership.
Here are some examples of how it might break down.
Goal $100K a year:
You’ll need to also keep in mind the payout to affiliates, marketing, advertising and so forth, but this gives you a general idea of what to consider when pricing your membership for best results. It always starts with your goal, big or small group, and your audience. How many of them are there, and how many can you attract and keep happy?
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