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How to optimize the pricing of your membership website.

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How to optimize the pricing
of your membership site
For more details, listen to http://membersonly.fm

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Rule #1
You are in control of your pricing
For more details, listen to http://membersonly.fm

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Step #1
Determine the “cost” of your site
For more details, 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.

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.

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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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