Thread by @jason_coleman

Just shared this link again on a Facebook group. It's one of the best ideas I've ever had.

"How to front-load your membership pricing and double revenues."

paidmembershipspro.com/front-load-mem…

I see a lot of memberships priced at $x/month while delivering most of their value in the *first month*. That's a mistake.

Instead, your membership pricing should match the value your membership provides, both in terms of (1) price and (2) timing.

Let's break it down.

(1) The price of your membership level should match the value your membership provides.

This is just another way to say "raise your prices".

Launching a membership site takes hubris; you’re telling the world that you know something they should pay 💰 for. Many set their prices too low, caving in to fears that “nobody will buy my membership”.

Don’t be afraid to set your price higher, even after you’ve launched. Just grandfather your existing members into the old plan and focus on obtaining new customers at the higher price.

(2) The timing of your membership pricing should match the timing of the value you provide.

This is the novel idea (although obvious enough that many have probably thought of it before).

Most membership products deliver an incredible amount of value up front and then some residual value over time after that.

I'm suggesting that (if this sounds like your product) you price your membership the same way: large upfront price, smaller recurring price.

Many seem lured by the appeal of passive income, MRR (Monthly Recurring Revenue), or generally more consistent revenue... and (wrongly) assume that they will make more money, more consistently, with recurring pricing.

Here's what really happens...

You set your membership price at say $50/month and members gain access to your best content. Maybe it's a library of member content built up over the years. Maybe it's your one highly crafted PDF featured in your sales material.

Customers are happy to get it. And then...

The next month comes. Customers pay another $50 giving them access to...

* The content they've already consumed.
* The 1-4 new posts you've written this month.
* Maybe a FB group, Slack, or member forum.

$50 is a great price for this value, but it fails rule #2 above.

The best example of this I heard of is @jamesswanwick's 30 Day Alcohol Free Challenge. I heard him talking about his story and product on @NathanLatka's The Top podcast.

I actually can't find a direct link to the podcast. Maybe it was taken down. Maybe James changed his pricing.

BTW, I did an episode of The Top podcast too. I was able to find it. I think it's time to do an update.

nathanlatka.com/he-plans-to-be…

During the 30 Day Alcohol Free Challenge, members get an email every day that helps them get through the first month alcohol free… a process that could help you lose 10 pounds, save hundreds of dollars a month, give you more energy for business, and change your entire life.

During the second month, members get access to a FB group and whatever new content James can come up with.

Even if that new content is worth the monthly fee, it's never going to be as good as the catharsis of the first month where members turned their lives around.

I just want to reiterate that the value of the 30 Day Alcohol Free Challenge is off the charts and no matter what James does, he’s not going to be able to deliver for his members in month 2 like he did in month one.

30daynoalcoholchallenge.com

I don't know how James has things priced now, but what I suggested at the time was to raise the up front price of the membership and keep the recurring portion the same.

Instead of $67 per month, charge $200 up front and $67 per month after.

Raising the price 3x will lower the number of sign ups. But it probably won’t cut sign ups by 1/3. If James was getting 100 people to sign up for $67 ($6,700), I’m guessing he could get 50 people to sign up for $200 ($10,000). That’s 50% fewer sales but almost 50% more revenue!

Another example, I've shared a lot is when @pmproplugin went from a monthly fee to a one-time/annual fee. We found that most customers got all of their value in month one while setting up their site. 6 months later, they'd ask "why am I still paying for this?"

We switched to annual pricing and our revenue is up, our customers are happier. We get the occasional person asking if they can pay monthly, mostly they just want to expense it that way or honestly take advantage of us in that first month. We don't do it.

One last thought on "consistent" revenue. If you've acquired a bunch of paying members, it may seem like it would be easier keep your existing members instead of gaining new ones. This sounds like good advice, but it's misleading.

In many ways it is easier to get new members. You already:

* Have the content
* Have the sales funnel
* Have the SEO
* Have the affiliates

You already know how to find these customers and sell them something they want. It might not take that much new work.

Alternatively, when creating new content for existing members:

* New content
* Might not fit your existing sales funnel
* No SEO yet
* No affiliates yet

You have no way of know if anybody, let alone your existing members, really want this new content. It's a lot of work.

Renewing members are great, and after so many years in business it's a large portion of our revenue now.

But we have an incredibly consistent flow of *new* customers. I'm actually shocked at how small our revenue swings are from day to day or month to month.

In summary:

Your membership pricing should match the value your membership provides, both in terms of price and timing.

To do that consider charging a high price up front and then a lower monthly or annual recurring price.

If this has helped, let me know.