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Subscription web site: Adding $100,000 to your bottom line

If you are running a subscription web site, and want to increase your annual revenue by $100,000, here's what you need to do.

First, understand the math

The first step to generating an additional $100,000 annual revenue with your subscription web site is to understand the math of per subscriber revenue.

Here's what I mean.

At my subscription site, www.bmyers.com, each new subscriber is worth about $100 in annual revenue. (Based on the quarterly billing rate of $24.95).

Knowing that, the easiest way to increase annual revenues is to increase the number of new subscribers I sign up each day.

As the table below shows, it doesn't take many new subscribers to reach the $100,000+ annual increase.

Annual Subscription PriceNew Members
Added Daily
Increase in
Annual Revenue
$1001$36,500
$1002$73,000
$1003$109,500
$1004$146,000
$1005$182,500
$1006$219,000

As the chart clearly shows, a site that charges an annual subscription fee of $100 can can generate an additional $100,000 a year by attracting just three new paying subscribers a day.

And if you are able to attract an average of 6 new paying subscribers a day, you can generate an additional $219,000 a year in subscription revenues.

Increased revenues, no increased workload

Due to the way subscription web sites operate, adding an additional 1000 members does not increase the operational overhead of the site.

Since the subscription sign up process is usually automatic (and doesn't require site management intervention), and since no physical products need to be shipped to new members, the workload of the site manager stays the same - whether the site has 100 subscribers or 5000 subscribers (this assumes the site owner is using an automated site management tool).

This ability to significantly increase the customer base without increasing the workload of the site manager or the operational expenses of the site is one of the most appealing advantages of the subscription web site business model.

Basically you can deliver the same product to all your customers at the same time - for one fixed cost.

Getting those three extra subscribers a day

So, if you can increase your annual revenue by $100,000+ by attracting just three new paying subscribers each day, just what do you need to do to attract those new subscribers?

Here's a checklist:

Attracting Subscribers to your Subscription Web Site
Use this checklist to help you attract new paying subscribers to your subscription web site
PASSFAILCOMPONENT BEING CHECKED
Have a clear focus - Make sure your site has a clear focus, and has been built to appeal to a specific audience. Having too wide a focus is often a fatal mistake. Narrow the focus down to a specific audience within a specific niche. See The one minute guide to choosing niche markets.
Have a great looking site - Use professional web site designers to create a professional look for your site that will appeal to your target market. Remove any elements in the basic design that might drive away potential subscribers. Often you can beat your competitors simply by having a better looking site. See Site Redesign Strategy - Designing for Credibility.
Maximize your Google ranking - Make every effort to insure that your site and every article within it gets high ranking at google and the other search engines. For most sites, 80%+ of new visitors reach the site as a result of a search engine query. See Checklist: Twelve steps to highest search engine placement and Checklist: Feeding the Search Engine Robots and Search Engine Optimization - getting a higher ranking using bullet lists to guide the robots.
Create a compelling reason to join - The design, layout, and words on the front page of your site should combine to create a compelling reason why visitors will want to become paying subscribers. The compelling reason is usually created by what visitors see is available on your site, not your sales letter. See example of compelling reasons at http://www.restaurantowner.com. Also see Six reasons why your product isn't selling well on the internet.
Create 'magnetic' articles and resources - Strive to create articles and resources on your site which will attract visitors. Place some of those articles in the 'free area' of your site. The goal is to give others a reason to link to valuable resources within your site. See Using viral video to grab the attention of the world.
Price it right - Make it easy for visitors to decide to join your site by offering a joining price that is attractive. Consider offering monthly or quarterly subscription plans. These keep the initial joining fee low, and make it easy for visitors to say, "I'll give it a try". See Checklist: Coming up with the Perfect Price and Subscription Web Site Projected Profit Analyzer.
Show the community - If you have an active discussion forum on your subscription web site, show some of the most recent posts on the front page of your site. This shows visitors that others have joined the site, and that there is an active discussion going on. See Attracting a crowd - the secret of getting your audience to come to you.
Offer a free tip of the week - Offer free tips related to the topic or focus of your site. Make sure visitors know the tip is not spam, and that their email addresses will never be used for spam. Then send a short, valuable tip each week, and include links to recent article headlines in the tip. This reminds visitors why they found your site interesting, and gives them a reason to take a second look. See Zero Cost Marketing - capturing the attention of your target market - how to get them to come to you.
Leave tracks - To help others find your site, make it a point to leave tracks on other sites that point visitors to your site. One way to do this is to regularly post messages at other discussion forums read by your target audience, and include a link to your site in your signature. Keep the messages relevant and non promotional. See Zero Cost Marketing Strategies - Leaving Footprints and Kilroy was here.
Use Google ad words - Use google ad words for words and phrases used by your target audience. This will help them find your site. See Seven tips to getting the most from your Google Ad Word investment.
Consider ads on other sites - Consider purchasing banner or sponsorship ads on high volume discussion forums that reach your target audience. This can be extremely effective - assuming you can find the right place to buy them.
Focus on the best return for your investment in time - As a subscription web site site owner your first and most important focus should be:
  • Having a great topic that appeals to a specific market
  • Having a good looking site
  • Presenting visitors with a compelling reason to join
  • Having an easy subscription sign up process
  • Having attractive pricing which makes it easy for visitors to decide to join
  • Having high search engine visibility - so potential subscribers find you many times
  • Having steady traffic of new visitors - only a certain percentage of new visitors will join. So you need a steady volume of new visitors each day.
  • Providing current subscribers a reason to remain subscribers - by providing useful content and unique resources, along with a valuable community of people sharing ideas and comments.

Real World Results

In the real world, attracting three new subscribers to your subscription web site isn't always easy. Especially if you fail at the first 5 items in the above checklist.

Get any of the first five wrong, and it could be difficult to attract any subscribers over any time period.

But, if you get it right, the number of new subscriptions each day can surprise you.

Some of the subscription web sites we work with occassionally sign up more than 100 new members a day. And quite a few sign up 10+ new members a day.

While 10 new members a day doesn't sound like many, look at the chart of the top of the page. You can see that depending on the price of the subscription, 10 new members might mean an extra quarter million dollars a year of subscription revenue!

For most site owners, the investment in time to make the changes needed to acquire just three new subscribers a day is definitely worth it.

The checklist above is a good starting place attracting enough new subscribers a day to increase your annual subscription revenue by $100,000 or more.

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