On-line Community Membership Fees

  • paraskevi
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Post 3+ Months Ago

Hi, I am creating an online community. We will have various types of memberships, each with diffeent "perks" and free software & gear. There will be a basic free membership and then the prices go up from 25 dollars to 140. These are one time fees.

Do you guys think its "sensible" to charge this way?

I mean a lot of places charge monthly or yearly fees to their members. So maybe a one time fee wont look so bad?

Id really appreciate your feedback guys!
  • Anonymous
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Post 3+ Months Ago

  • Don2007
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Post 3+ Months Ago

What are you offering for that price & why would people want it?
  • paraskevi
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Post 3+ Months Ago

Hi! Well lets say a membership of 25 dollars will give you basic access to most features and allow the member to enter various competitions for a small fee.

The membership of 140 dollars will allow full access to all features and free entry to all competitions. Also discounts at our store with every purchase ever made and free live video conferencing.
  • ATNO/TW
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Post 3+ Months Ago

I think I understand your rationale behind a "one time" membership fee - that being: users would be more inclined to sign up since they only have to pay once. Not sure that's the best approach. Have you sat down with a calculator and thought about this?

Think about renewable membership. Let's look at a scenario based on a fee structure of $25, $50, $100 and $140. Lets assume for the example that you have the same number of members sign up each month in the following breakdown:

2 @ 140
4 @ 100
6 @ 50
8 @ 25

This totals $1180 a month. In a one time fee basis, over the course of two years you would make a total of $28,320 ($14,160 per year).

Now let's say for "renewal fee basis", you again still have the same number of new member sign ups each month consistently for your first two years. And let's say the second year, only half of your first year's members renew at each price point. Your second year you would gain an extra $7080 making your two year total $35,400 instead of $28,320.

Which would you prefer?

In theory this could compound year by year. The key is making your services good enough and attractive enough to both get new member signups in the first place and secondly keep them wanting to come back. It isn't the pricing or renewals. It's the service you provide that makes the difference.
  • paraskevi
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Post 3+ Months Ago

That is so true...

I knew I'd eventually hit a dead end with the one time fee.

But a monthly fee seems too often. Perhaps a yearly fee or every 6 months would be better?

Again thank you so much for your help!
  • ATNO/TW
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Post 3+ Months Ago

The way most places I've seen work, they offer month to month, three month, 6 month and 1 year membership plans, however, for marketing incentive, the prices decrease the longer they sign up.

Example:

monthly $10 per month - $120 per year paid 12 times a year
3 month $9 per month - $108 per year paid 4 times a year
6 month $8 per month - $96 per year paid twice a year
1 year $7 per month - $84 per year. paid annually
  • SpooF
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Post 3+ Months Ago

Ozzu runs on a one time membership fee, I think what you really have to look at is what does your fee really give your members? In the case of ozzu, its not until you hit the gold membership level is it costing Ozzu any money to have that member. At gold membership there are no ads, and there is a discount on all the ozzu templates. With that membership Ozzu is losing some funding from that member. Now the question you have to ask, is the price of the member ship going to be less than, meet, or exceed what your losing in terms of funding.

If the features your giving your member cost nothing to you, besides maybe maintenance then a one time fee might be a good way to go. More people are more likely to join and its not going to cost you much of anything. If the features your giving your members costs you extra to provide then running a monthly fee would be what you want to do.
  • joebert
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Post 3+ Months Ago

I don't consider myself to be very good at this type of stuff. I absolutely hate bidding and setting a value on anything because there's nothing solid about it.

My first thought is that a one-time fee might be great to get that initial member base, which once you have you can evaluate a possible transition to monthly fees for new sign ups.
  • ATNO/TW
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Post 3+ Months Ago

In other words sort of a charter lifetime membership available for a limited time?
  • joebert
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Post 3+ Months Ago

That sounds about right.
  • paraskevi
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Post 3+ Months Ago

Sounds good..

How about:

Basic membership under 50 dollars will be one time

Advanced membership over 50 dollars will be charged a one time fee of lets say 60 dollars and then like 10 dollars a month?

I am planing on giving out around 500 free for life memberships and 500 free for a year memberships.. Too generous? lol

I am also a little "snobbish" about what ads I want on my site. So perhaps if this takes off, I can sell space to certain companies and make a profit there too?

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