The second membership category is the mid-tier offer that is priced between the low price and your expensive anchor offer. than your low-priced offer and is generally priced between 30 percent and 49 percent of your anchor offer. So, let’s say your anchor offer is priced at $97 per month, and you want your lowest-priced offer at 20 percent and your mid-tier offer at 40 percent. Your lowest price will be $19 per month and your mid-tier price will be $39 per month. Pretty easy, right? But now comes the real question … Can you afford your customers? We started this article with a basic discussion about costs, but we did not determine if those costs are sufficient to run your membership site.
This is where a little math and a basic rule of thumb philippines photo editor can help. In general, the average revenue per member you will receive from a membership site will be between your lowest-priced offer and your mid-tier offer. For example, if your lowest price is $19/month and your mid-tier price is $39/month, then your average revenue per member will be around $29/month. Let’s look back on our costs. We identified $100,000 of costs per year and we want to target $400,000 per year in revenue. That means that every month we need to generate $33,333 in revenue ($400,000/12 months).
If the average revenue per customer is $29/month, then we just need to divide our target monthly revenue ($33,333) by the average monthly revenue per customer ($29) to find the number of customers you need: $33,333 / $29 = 1,149 customers per month Now you want to ask yourself: Does your $100,000 in annual costs allow you to support 1,149 members per month? If the answer is “yes,” then you are good to go. If the answer is “no,” then you either need to increase your pricing or lower your costs. Get all the details in this SlideShare presentation Your head might be spinning right about now, but we want to make it easy for you.