Membership Site Profits

The membership site business model has several major advantages over other business models… The most obvious benefit of running a membership site which charges a reoccurring fee to its members is that (in theory) you only have to make the sale to your customers once and then you get paid over and over again. Think about it for a second… Imagine that you run a membership site that charges a fee of $47 each month. For each member that you recruit you potentially earn $564 in revenue over 12 months. If you had just 30 members that means you would earn $16,920 a year from your site, assuming that each person stayed as a member for the full 12 months (which they probably won’t, but we’ll talk about that in a moment.) On the other hand, if you didn’t have a membership site and purely sold people one-off payment products, you would have to make a $47 sale 12 times over the same period in order to earn the same revenue from each person. To earn the same amount over a year overall you would have to make 360 sales!