Membership Geeks Podcast with Mike Morrison 324 - Should I Charge Monthly or Annually for Membership Site?
Not sure whether to offer monthly or annual billing on your membership?
The way members sign up to your membership site can make all the difference in the buying decision.
You don’t want to turn people away at the first stage, so picking the right one is crucial.
In this episode, we go through all the pros and cons of monthly vs. annual subscriptions. You’ll learn which has the higher profit margin usually, which is the more stable option, and which is best for your members.
We also share an alternative way to bill and how you can upsell or down-sell your membership options.
Essential Learning Points:
- Why monthly memberships tend to offer more stability
- How monthly billing can improve engagement
- Why annual billing provides a better profit margin
- The effect annual billing has on your member base
- Why you don’t have to pick one or the other
Important Links & Mentions:
Key Quotes:
“You can, of course, offer both. Unless you have a very compelling reason for going monthly-only or annual-only, then we do typically recommend having both options available.”
“One of the main reasons people set up a membership site is for the stability and the predictability that comes from having that sort of recurring revenue over time.
That stability goes out of the window to a degree if you're relying solely on annual billing.”
“With a higher buy-in, people are a little bit more invested…and they've given a bit more thought to their buying decision. Usually, that all adds up to a slightly higher caliber of members inside your community.”