4 Reasons Why You Should Start a Membership Website

Membership websites are quickly becoming common place. More and more consumers are willing to pay for information that is specific to their interests. The "give it all away for free" website model is becoming more difficult to prosper at. Advertising cost are down and competition is fierce.

So why is the "Pay for Content" model such an attractive one?

1. Quick and Low Cost Startup:

Membership Websites can be up and running in just a couple of weeks, depending on your computer and html skills, maybe less. The cost associated with starting a membership site is pretty small compared to most other business models. In most cases you can start one with just a few hundred dollars.

2. High Profit Percentage:

Membership Websites have fairly low overhead and do not necessarily need any employees other than yourself. That means after expenses such as membership software, hosting, etc... you average from 50% to 80%. This extremely high profit percentage.

3. Continual Income:

One of the biggest problems business face is maintaining income and cash flow on a continual basis. Constantly seeking out new customers is time consuming and expensive. With a Membership Website you can have a steady income month after month without having to continually get new customers.

4. Quick Turn Around on Investment:

One of the biggest advantages of a Membership site is the quick return on investment possibilities. For example... Let's say it costs you $300 to get started and around $100/month to maintain the site. If you only charged $19.95/month for a subscription it would only take you 16 subscribers to cover the costs of start up. Not only that, but every month after that you would be making $200 a month from the same 16 subscribers... That's $2,400 a year. That may not sound like a lot of money but what if you had 50 or 100 subscribers. Your income quickly rises to thousands a month.

Don't think you know anything people are willing to pay for...well you do. Their are membership website on every topic from business to fishing to socks (yes that's right socks, like the one's on your feet). The good news is that the smaller niche market is for your information the more likely people with be willing to pay for it. Not only that but it usually means you can charge more as well.