I see lots of marketers telling everyone that membership sites are holy grail of making money online.

It makes sense…

you get recurring income every month.
you don’t have to keep launching products or pushing affiliate products.
you can grow it by adding members and making more every month.

But that’s the sizzle.

It’s all true, but it’s not the whole story.

I’ve owned a LOT of products and membership sites in my 6 years online.

And membership sites have great potential for sure, but it doesn’t always pan out.

Here’s why…

When you sell a product it’s a one-and-done sale and you pocket the money.
Sure there are some refunds but you still keep most of it.

With membership sites, customers are hesitant to signup for a monthly commitment.

So it’s a tougher sale upfront

but also, you usually need to offer a trial period so you may not see any money for up to 30 days.
(and some members will cancel before they get billed even 1 full price monthly payment.

The biggest issue with membership sites though, is retention.

How long will active members keep paying until they cancel?

On average, this is usually between 2-3 months for most products.

So some quick math…

If you can sell a membership for $27 per month with a free 30-day trial or a one-time product sale of $67, what’s better?

Well, the membership will make you on average $54 or less per member and the product makes you $67.

So the product is better…

UNLESS you take the time to optimize your membership site.

Monitor stats.
Tweak conversions.
Optimize retention.
Add value.

Then over time the membership site can be worth a lot more.

But the quick hitter for making money will always be the product sale.

Do your homework before you decide what way to go.

Make it happen,
Brett

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