Tip #21: Monthly Membership Subscription vs. Limited No. of Payments

What is the best payment option – recurring monthly subscription or limited number of payments?

Well… Every method you choose has its pros and cons, and there is no such thing “the best option”.

It really depends on the type of membership site you are building and what you are offering.

Monthly Membership Subscription

This method is good for offering services, especially “sticky” ones, but can also be used for content-based membership sites.

Pros:

The idea of earning recurring payments on a monthly basis is very appealing, and the main reason for that is that you don’t need to start every month from zero income and worry about whether you’ll generate sales or not.

Cons:

If you are building a content-based membership site, you need to commit to constantly adding new content

From researching and talking to other membership sites owners, a very common problem is keeping high retention rates. A lot of members usually tend to cancel their subscription after 3 to 4 months.

If you want to make sure members won’t cancel their subscription you need to be creative and think of a “sticky” solution that would want them to stay members, for example: a monthly bonus.

You can also drip your content and that way attract members to keep their subscription.

Limited No. of Payments

This method is great if you want to sell online courses.

Pros:

People usually don’t like to register to services with unlimited subscriptions, especially if it is a less known service, so limiting the number of payments can be a good idea.

Letting people know the number of payments they are going to pay in advance can earn you more subscribers.

Cons:

The main downside of limiting the number of payments is, of course, the main benefit of choosing monthly subscription membership…

Though you don’t start from zero every month, when the payments are complete you need to convince your clients to pull out their credit cart again, which is usually more difficult to do than keeping them from cancelling a subscription.

You May Find These Posts Interesting:

Tip #14: Adding Affiliate Links to Your Membership Site – 7 Tips to Doing It Right!

Wishlist Registration Widget New Versions Release – Time Limited Discount Offer!

Tip #17: Why Should You Include a Refund Policy in Your Membership Site?

Tip #10: Should You Drip Your Content or Not?

Tip #2 – Managing Your Membership Site Easily Using These Wishlist Member Shortcuts

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