Make Money Online using Subscription revenue
Shoemoney on his latest post recommends Yaro Starak’s membership masterplan. Shoemoney made close to 3 million in the year that he charged 19.9 dollars for six months on his site Nextpimp.com and still thinks that he might have left a lot more millions on the table after he read the book.
But because he made a lot money using subscription model, would you also be able to make Millions? Possibly yes. But in order to be able to make money online using a subscription model, you will need to answer a few questions?
1) Does your product or service offer an unique value that will be diluted if it were free?
Some people place more value on a service or product if there is a certain cost associated with the product. Even though everybody wants a free, ride, the percieved value of something expensive will always be more than a free product.
Example is the Blackhat forum run by Quadzilla
People sign there up because they think it has more information than a wickedfire because it is a paid forum. In reality, people are paying for Quadzilla’s Blackhat expertise that he would not share on his public blog.
Your product need to unique such that it cannot be recreated or cloned easily, and it must offer something of value for which one is willing to pay a price, or a premium.
2) Can the product or service be profitable without offering a Freemium section?
The best way and most popular way of getting subscription revenue is to offer a free section and charge for an upgrade to a premium section. Like DNforums or those file hosting sites.
If the business you are in can be run profitably without charging a premium, ie, by running google ads and affiliate offer, and if your product is not patent grade unique, free is the best way.
You should not try to squeeze subscription revenue, because if you did, then someone else will come along and give everything for free. People might place a premium value on a paid service, but on the internet, brand loyalty is extremely fickle and it just takes a few mouse clicks to sign up to your free competition.
Google have democratised the making money online game and beware of the micro entrepreneurs.
But if you do have a very unique product that can not be copied easily, by all means make some subscription money.
Tags: Make Money Online