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Membership Sites & Recurring Income Explained…

There are many different ways to make money online.  Commonly internet marketers start out selling one product from a small web site.  You may start by selling a product for $19.97 but how would like to sell a product for $19.97 and then have the same customer come back the next month and buy another $19.97 product?

Better still, how would you like it if that same customer came back a third month and bought another $19.97 product.  What if you had 100, 250 or even 1000 customers doing that same thing each month?  Many online marketers have developed a system that does just that.  It is called a recurring membership site…

If you make money online, you know that you must sell a product or refer someone who ultimately buys a product.  The thing is, the next month, in order to make money, you need to do the same thing all over again.  You have to make a sale.  Now compare that to the model of a membership website. 

With a membership website, you make a sale and that one sale could easily become two, six or even twelve or more sales.  The one sale of $19.97 could easily be a sale of almost $240.00 over a twelve month period.  Here is how a membership site works:

You create a site with information relating to a particular niche.  You have enough content associated with the site that would induce a lead to pay you $19.97 (an arbitrary number for this example) for access to that site for a month.  The membership would be automatically renewing each month, commonly known as recurring.  If your customer found enough useful information he or she would continue to want to have access to the site.

That means that come month two, they are billed another $19.97.  Your one sale just doubled itself.  Of course you have to keep your customer interested in staying at your site each month so you create new unique and useful content each month to keep them coming back.  It could be new ebooks each month, it could be new videos, it could even be written newsletters that you send them offline each month. 

Assume that your customer was interested enough to stay for a complete year.  Now your one sale turned into  a $240.00 sale.  It does not take a lot of customers to add up to quite a significant ongoing income.

If you were able to sell 50 customers on the idea of joining your membership site, you would collect $1000 per month.  That’s $12,000 per year, and you may only have made 50 sales!  If you could sell 250 customers your monthly income would be $5000 dollars.  That would be $60,000 per year.  If you sold 500 customers, you would have a $10,000 per month income.  That’s $120,000 per year!

Obviously everyone who initially joins your site may not stay for 12 months, they may only stay a couple of months.  But if you can consistently add more new members than drop out each month your membership will increase each month.  If you only were able to add a net of one customer per day, then by the end of the year you would have 365 customers.  If they each paid you 20 dollars per month you would have a monthly income of $7,300 dollars. 

As your membership site grows, your income grows at fantastic rate.  No wonder so many internet marketers are creating their own membership sites.  There are many strategies that can be used to grow a membership site.  Stay tuned to this blog on a regular basis and you will find more tips on membership sites and all other online marketing subjects. I am positive that with the right knowledge and the right attitude that you can make a living online!

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About Author

Ray Johnson is a "new breed" upcoming internet marketer and online business mentor who made a remarkable $17,000 in a single month selling ebooks and information products on ebay and online. His aim is to build real online businesses for people just like you, and allow you to taste the thrill of automatic income made from the internet - all from the comfort of your own home.