Read Cody Moya’s article titled “The Low Cost Structure of a Paid Membership Site”.


Cody Moya’s article is reprinted here.

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The Low Cost Structure of a Paid Membership Site

It is no wonder that Internet based businesses are so popular with entrepreneurs and first time business owners. The cost structure of the Internet is such that many of the traditional barriers to entry, such as the need to rent or purchase office space, are eliminated. This helps to keep startup costs to a minimum, and in many cases it is possible to start a paid membership web site for only a few thousand dollars, and often considerably less than that.

Another advantage of a web based business like a paid membership web site is that it frees the business owner from the need to hire employees. Unlike a traditional brick and mortar operation, which is all but impossible for one person to run, a paid membership web site can be maintained and operated successfully by only one person.

Naturally, those who lack technical expertise may want to hire a webmaster and a database administrator, but even in that case the manpower required to get a web site up and running, and keep it going, is extremely low compared to traditional brick and mortar businesses.

This low personnel requirement has a great many advantages. For one thing, it reduces the costs associated with the business by keeping salary and benefit costs low (or even nonexistent). This low personnel cost can in turn lead to higher profit margins. In addition, the owner of a paid membership web site will not have to wait until the end of hiring to launch the business. The paid membership web site can be launched as soon as it is completed, and it can be on the web in a matter of minutes.

Another advantage of a web based business is that it is infinitely scalable at little cost. Unlike a traditional brick and mortar business, that must buy or lease additional office or retail space in order to grow, a paid membership web site can handle a large membership base as easily as it handles a smaller one. Subscription based web sites can be easily expanded and updated very quickly and at very little cost.

The software and databases on which membership web sites are based are easy to scale up, and they can handle a growing membership base as required. And unless the web site owner has completely ignored scalability when building the site, the costs to scale up the membership are very small. Other than perhaps spending a few dollars on advertising, the costs to grow a paid membership site can be very small indeed.

Creating a list of paid members has many advantages beyond just the monthly revenue created by those subscribing members. One of the major advantages is that the list created by the paid membership web site consists of highly targeted customers, and these targeted niche customers are quite valuable to potential advertisers and affiliates.

While the ongoing costs to run a paid membership web site can be quite low, it can be quite expensive to provide fresh new products for your members to sell every month. Your members will be coming to you, looking for ready to sell products, and it is important to provide the products they need every month.

One very cost effective way to enjoy the many advantages of a paid membership web site is purchase a license to run such a membership site. The idea is that this license will allow you to have access to those ready to sell products month after month on a consistent basis. Those ready to sell products can be presented to your members on an ongoing basis, for only a fraction of providing that information yourself.

ABOUT THE AUTHOR:

Cody Moya writes about Profitable Memberships in his Free Courses on Internet Marketing. You can sign up for his free Courses and get additional information at his website: http://FreeInternetMarketingCourses.com

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*IMNewswatch would like to thank Cody Moya for granting permission to reprint this article.

 

 

 

 

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