How to optimize the pricing of your membership website

How to optimize the pricing

of your membership site

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Rule #1

You are in control of your pricing

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Step #1

Determine the “cost” of your site

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Cost vs Expenses

Costs…

Credit Cards Fees

Customer Support

Hosting

Contribution Time

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Expenses…

Marketing & Ads

Affiliate Commissions

Development

Rent & Internet & Other

Your “costs” should be

10%-25% of total revenue

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Step #2

Find your Target Revenue

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Revenue Targets

$ Costs / % Total = Target Revenue

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10% 25%

Revenue $1,000,000 $400,000

Costs $100,000 $100,000

Gross Profit $900,000 $300,000

Profit before you pay expenses

Step #3

Create an Anchor Product

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What is an Anchor Product?

The Ultimate Offer You Provide

Very expensive

Highly exclusive

Includes everything and more

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Step #4

Create a low & mid priced offer

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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

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A basic guide…

Step #5

Find the number of subscribers

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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.

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Based on your average…

Divide your target monthly revenue by

the average price.

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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 )

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Step #6

Review your costs, one more time.

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Based on the projected subscribers, can

your costs cover that number?

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For example, can you support 900

subscribers based on a cost of $100,000

per year?

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Yes!Then you are good to go.

No!Then increase your price or lower your costs.

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How you present your pricing

matters, a lot.

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The higher the price, the more

important the design.

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Emotions matter more than

than the price of features.

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Is your price high enough to

offer a discount?

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And one more thing…

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Listen to…

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