Building profitable membership sites is one thing we know a lot about at Rainmaker Digital, and one question we often receive is:
How do you create the right pricing for a membership site, especially one that is just launching?
Even sophisticated online entrepreneurs struggle with that question.
And while there are many ways to optimize your pricing plans once your site is launched, starting with the right foundation will make it easier to improve.
In this post, I will walk you through a basic framework you can use to determine the best pricing models for any type of membership site.
The most important rule you must remember is this:
You are in control of your pricing.
There is no national database of pricing that you have to follow. You are in control of everything when it comes to pricing — so don’t feel like you have to do what everyone else does.
Yes, the “market” does decide if your price is “right.” But you influence the perception of your price through the unique value you offer.
So toss out any preconceived notions of what you have to do and focus on what works for you.
Know your costs
I know what you are thinking right now:
“Damn it, Sean. I am a marketer, not an accountant.”
Don’t worry. You just need a “bare bones” understanding of basic math and a little logic to find your costs, so that your site will “live long and prosper.”
All membership sites share a common set of annual costs, including: