Single Sale vs. Membership: Money Talk
Hi again, on my last post I mentioned about the risks of having a membership site or single sale sites, considering we are mentioned the pros and cons of these both, I will be trying to cover everything I can so you get the best knowledge if you are looking for a way to start your online venture.
If you havent read yet my last post I recommend clicking on the link below:
Ok lets move on to the monetary aspects relating to single sale and membership sites from the point of view of the business owner, you. Lets begin by looking at how you’re going to be paid. To state the obvious, with single sale sites, you get your cash right away. People pay you, download and the money lands in your bank account. With membership sites, people are paying you each month, or each week, fortnight or year, whatever your recurring income I set at.
I remember a time not so long ago when there was a rave about membership sites. Recurring incomes are best is pretty much what was hammered into us for a while, something you might remember if you’ve been around for a few years. A phase of membership site hype if you will.
Of course they were correct. Something a membership site gives you and a single sale product doesn’t is a bunch of recurring money, month after month after month, landing in your bank account as a reward for the quality of your service and relevance of the tools for the members. This is the reason that I originally went for a membership site during this phase. After all, once you have the customers, they keep paying you. It’s not like you have to go out and sign them back up and sell to them again every month.
With this advantage comes a price of course, and something that when the whole membership hype phase was going strong a few years back, people failed to realize, and that’s membership sites themselves are often set at a lower price than single sale products. Again, we said earlier how this depends on your product. There were all sorts of stats popping up on how long members stay in membership sites. I heard one was an average of seven months, but from my experience, this is actually much greater. I’ve had people with me for two years plus, and some are still with me five years later.
However, keep this in mind. If you’re creating a product, look first at how much you would charge through a single sale site to gauge whether this is a viable product for a membership site, where the majority of members will not still be paying you two years later, and you’ll be able to see whether or not the membership option is a viable one for you.
Yours In Success,
Bruno Duarte & Homebiz Essentials
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