Websites that only allowed registered members to enter and participate in are usually called Membership Sites. Quite often the members pay a regular fee to belong. The common point of interest amongst the members is passion for a niche topic. That topic may be about a particular type of fish, or a particular video game, or a particular type of software. The owner of the membership site is usually perceived as an expert on the topic. Although most members join because of the promise of information on their niche, many of them continue paying for their membership because of a sense of belonging to something. If you are passionate about a particular topic, there are probably thousands of people on the Internet who are also very passionate about that topic. If this is you, you can own that membership site.
What reasons are most often given for operating a membership site? Some people answer that question by saying that their passion drove them to start the site. However, I am sure that many people do it simply for the cash. Those passionate members are each paying a monthly fee to be members. At a monthly fee of $10, a site with 250 members results in an income of $2,500 per month. Once the site is built and you have those members, the time cost of maintaining this site is a part time job.
What do you need in order to start a membership site?
1. First you need a topic. More specifically, a niche topic. As we have already stated, it is best if the owner are passionate about this topic.
2. The second requirement is content. You need to have high quality content in order to both attract and retain your members. Don’t forget, they are paying you a monthly fee and expect quality in return.
3. Third, you need some technical expertise. The membership site will require special software to maintain memberships. The forum will also require special software. Knowing how to install and maintain the software will be a valuable ability.
There are alternatives to running your own membership site.
1. Locate a partner. If you have the niche idea, you can find a technical partner. This obviously would require some legal documentation in order to determine how work and profits are shared.
2. Locate a membership site that offers an affiliate program. The owner will share the profits with people who do the marketing. Your job would be to find potential members and in return receive a monthly residual for all that join. That residual is quite often 50% of the fee, but may be a different percentage as well.
3. There is one more model that combines the first two. In this model you pay an up front fee, and you then get to keep all the monthly fees from the members you find. Besides the fee you pay to join, there may be a monthly fee as well. Again, you find members, and the site’s owner finds a topic, content, and a technical support team. A good example of this structure is the new MemberSnap system started by Eric Louviere. You can read more about the inner workings of this method by going to the MemberSnap site.
Start your Membership site out of passion; continue it for the residuals!