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How to optimize the pricing
of your membership site
For more details, listen to http://membersonly.fm
Rule #1
You are in control of your pricing
For more details, listen to http://membersonly.fm
Step #1
Determine the “cost” of your site
For more details, listen to http://membersonly.fm
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
Your “costs” should be
10%-25% of total revenue
For more details, listen to http://membersonly.fm
Step #2
Find your Target Revenue
For more details, listen to http://membersonly.fm
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
Step #3
Create an Anchor Product
For more details, listen to http://membersonly.fm
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
Step #4
Create a low & mid priced offer
For more details, listen to http://membersonly.fm
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…
Step #5
Find the number of subscribers
For more details, listen to http://membersonly.fm
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
Based on your average…
Divide your target monthly revenue by
the average price.
For more details, listen to http://membersonly.fm
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
Step #6
Review your costs, one more time.
For more details, listen to http://membersonly.fm
Based on the projected subscribers, can
your costs cover that number?
For more details, listen to http://membersonly.fm
For example, can you support 900
subscribers based on a cost of $100,000
per year?
For more details, listen to http://membersonly.fm
Yes!Then you are good to go.
No!Then increase your price or lower your costs.
For more details, listen to http://membersonly.fm
How you present your pricing
matters, a lot.
For more details, listen to http://membersonly.fm
The higher the price, the more
important the design.
For more details, listen to http://membersonly.fm
Emotions matter more than
than the price of features.
For more details, listen to http://membersonly.fm
Is your price high enough to
offer a discount?
For more details, listen to http://membersonly.fm
And one more thing…
For more details, listen to http://membersonly.fm
Listen to…
http://membersonly.fm