It’s been more than a month since my last post… and that’s because I’ve been busy with my company and other stuff. As today’s a holiday because I’m sick at home, I’ll talk about one of the things I’ve been working on of late – membership sites.

I’ve started membership sites in the past, although mostly one time memberships ($47 up front for example rather than $47/month), some have been reasonably successful, some have bombed.

Whenever I start a business, I believed that there always needed to be an exit strategy – living in Dubai, that wasn’t possible with a membership site. Paypal subscriptions can’t be transferred to another account with breaking them and getting your members to resubscribe (which will naturally mean you lose a few of them) and other things like merchant accounts were hard to get in Dubai.

Considering I didn’t have a credit card (and the one I do have is still used rarely / never), I didn’t want to look at other ways of setting it up so focused on doing simple one time products like eBooks, scripts and so on.

Now that I have actual employees, I can focus on membership sites without needing the exit strategy as they can be taught to maintain them (meaning I will have to do little / no work on them even if I decide to ‘retire’). I’ve been playing around with various scripts and recently launched my first membership site on April 8th.

The membership site can be seen at: PLR Blogs

Basically, the idea is that members get access to four PLR blog packages per month. Having noticed other people selling them individually for $37+ each, I thought that since they were so easy to do why not offer a few for a set price all in one place.

Now, that membership site took about 2 days and around $250 to set up and promote… it’s now making a rough $350-400 a month based on revenue from members.

If the revenue from members continues, that’s quite a decent ROI (it’s paid for itself in the first month, including the script which was $127 and can be reused on multiple sites).

All memberships are paid into Paypal and every month it will take a few hours of my employees working to create the packages for the membership site.

Now, the benefit of having a site like this is that you can also earn a lot from upsells.

Since the site has been live, it’s earned around $400 from upsells, people asking for custom / customized packages and other related things.

People that are in a membership for PLR blogs are probably interested in other blog related services, ex content writing, logo design and so on.

So in the very first month, the site’s made a rough $750 gross and $500 net.

As my employees did probably 90% of the work (including the upsells) it’s pretty much a passive business for me.

I started this as a test for membership sites, my end goal is to do a big launch in the IM niche sometime this year and I’m playing around with different software before I decide how to set it up. So far I’m fairly pleased with this software but there is room for improvement.

Your goal for a membership site is to offer something for unbelievable value and give them a reason to stay subscribed.

For example, here the value is the packages which are very cheap ($17/4) as well as the cap on members (maximum 30). If you unsubscribe, you may never be able to resubscribe if it fills up in that time – a big draw for staying subscribed.

It also shows the ease of launching – it was launched only on the Warrior Forum, the site itself has no real sales page and the whole membership site (not including the blogs) took around 1 hour to setup and customize. It looks clean and does what it needs to do.

The script used is Easy Member Pro (aff link) and costs $127 for an unlimited site license which is great value I believe (having looked at the other options). Another idea I had was a lot of small priced membership sites, with small member bases – something easy to run with employees.

For example, five membership sites charging $10 a month with 10 members each – $500 a month. Supplying something that’s worth $10/month isn’t too difficult – videos, eBooks, plain PLR stuff, services… you get the idea. And getting ten members a month is easy (forums, blogs, email lists etc).

I’ll update more on here as I work on other parts of membership sites but hope this post gives you a few ideas. :)

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63 Responses to “Membership Sites – Easy Passive Income”

  1. Tom from Timothy Ferriss Scam (1 comments) Says:

    Looks like you got something good going on here Jason! I have always thought about setting up membership sites but have stuck with just promoting affiliate products so far.

    How many staff you got working for you now?
    Tom@Timothy Ferriss Scam´s last blog ..Timothy Ferriss: Scam or Genius? My ComLuv Profile

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  2. Yeok Heng (1 comments) Says:

    This is another great post from you. I really enjoy reading your article as you always inspire me. Now, I am looking to have a membership site in my local market.
    Yeok Heng´s last blog ..When I Start Making Money Online? My ComLuv Profile

    [Reply]

    Jason (704 comments) Reply:

    Good luck mate – let us know how it goes. :)

    [Reply]

  3. Job Search (3 comments) Says:

    It’s really nice to have membership sites but I don’t know how to start. hehe

    [Reply]

    Free Club Penguin (6 comments) Reply:

    Haha, I know what you mean. However I think they really pay off in the end if handled well, the hard part is always getting started.
    Free Club Penguin´s last blog ..Free Club Penguin Membership My ComLuv Profile

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  4. Justin from JavaScript Tutorial (3 comments) Says:

    Another excellent post. Everytime you throw around a good idea like this I tell myself I am going to give it a try but it just doesn’t transpire. I really need to work on that.
    Justin @ JavaScript Tutorial´s last blog ..How To Validate An Email Address With JavaScript My ComLuv Profile

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    Jason (704 comments) Reply:

    Action is the key – try out the free script below to see how you can run with it, if it looks like it could be successful you can move on to a paid one :)

    [Reply]

  5. Richard Riley (3 comments) Says:

    I really like this article, but I have a couple questions. The four blogs you offer to subscribers, are they your blogs or someone elses that you have ‘repackaged’? Also, who rights the content for the blogs? Is it you or a VA? Thanks so much!

    [Reply]

    Jason (704 comments) Reply:

    Richard,

    The blog packages were made by my employees. As they were working for my company, the rights to the packages are owned by me. :)

    [Reply]

  6. Pierre-Yves from Référencement Super X (3 comments) Says:

    I’d love to see an article on what is considered an “unbelievable value”… :)
    Pierre-Yves@Référencement Super X´s last blog ..Off-Site vs On-Site: Disney? My ComLuv Profile

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    Jason (704 comments) Reply:

    Soon mate, soon hopefully. :)

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  7. Agent Deepak from Blogging. Marketing & Success (3 comments) Says:

    I have been thinking of a Membership site myself but I cannot buy a paid script as of now.

    Is there other way around? I would like you to help me if possible.
    Agent Deepak@Blogging. Marketing & Success´s last blog ..Blog Launch Post Series and Giveaway My ComLuv Profile

    [Reply]

    Jason (704 comments) Reply:

    FusionHQ allows free use for the first site, I’ve heard it’s good although haven’t used it myself:

    http://www.fusionhq.com/?act=package

    Play around with it, see if you’re able to do what you want with it.

    [Reply]

  8. Feller from Twitter knowledge (12 comments) Says:

    Well, this kind of sites may work, but I think that prices should be low.

    [Reply]

  9. Tiffany from Online Passive Income (1 comments) Says:

    I have been hearing a lot about creating membership sites lately. Although it’s not something I have time for now I may just look into in the future. Thanks for the great post and more info on membership sites!
    Tiffany @ Online Passive Income´s last blog ..My Keyword Academy Case Study – 1 Month Update My ComLuv Profile

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  10. WebpageLottery (3 comments) Says:

    Nowadays there are too many free stuffs. It’s kinda hard to charge people for anything now. But it’s good for the comsumers =)

    [Reply]

    d3so (11 comments) Reply:

    Yup, I don’t go near products that look like I can get them for free.
    To make a sale nowadays, you’ve got to stand above the competition.
    d3so´s last blog ..Need a Roadmap for Blogging? Check Out This Book! My ComLuv Profile

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  11. Jason (704 comments) Says:

    This method is great! I can’t believe its actually turned out to be successful! How much profit are you making? Well im sticking to my own way, its much less complicated. Check out my blog!
    Jason´s last blog ..Get an Apple iPad For FREE! My ComLuv Profile

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  12. Database Software (1 comments) Says:

    Speaking of exit strategies- the nice thing about membership sites or any business that offers a recurring revenue stream is the value buyers will place on your business when they’re buying that existing revenue stream from you- it’s powerful stuff.

    [Reply]

    d3so (11 comments) Reply:

    A solid revenue base is more valuble than estimates and it does weigh heavily on the value of a site.
    d3so´s last blog ..Need a Roadmap for Blogging? Check Out This Book! My ComLuv Profile

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  13. ample from web design (1 comments) Says:

    Would be interesting to see your next post about the membership site and look at how things turn out.

    [Reply]

  14. d3so (11 comments) Says:

    That’s a great project you’re working on. Membership sites are
    an awesome source for passive income. I have a forum that I’ve left alone
    and members are still subscribing.
    d3so´s last blog ..Need a Roadmap for Blogging? Check Out This Book! My ComLuv Profile

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  15. Finance Blogger (1 comments) Says:

    Hey Jason,

    A really thought stimulating post. You got me started on thinking of starting a small membership site. However, could you elaborate a bit more on how you promote the site? As to me the hardest part would be actually trying to drive people to the site.

    Thanks,
    David.
    Finance Blogger´s last blog ..Saving Money In The Bank To Earn Interest Is Not Considered Investing My ComLuv Profile

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    d3so (11 comments) Reply:

    Promoting the site would be the same as promoting products.
    d3so´s last blog ..Daddy Yankee – Descontrol (Official Video HD Standard) My ComLuv Profile

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  16. Feller from Twitter knowledge (12 comments) Says:

    Anybody home ? … Time for new post or something ? :)

    [Reply]

  17. Impulse Magazine (1 comments) Says:

    If you are looking to create a business that creates passive income, a membership site is definitely the way to go
    Impulse Magazine´s last blog ..Motivational Quote by Mike Dooley My ComLuv Profile

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  18. Kristi from Blogging Tips (1 comments) Says:

    Membership sites don’t seem like they are that “passive” in terms of the amount of involvement that is needed by the owners. For example, the Third Tribe forums are based around the fact that you have more direct contact with some of the top bloggers / marketers out there. I have thought about doing a membership site of some sort, but I expect it to be a very involved project and commitment.
    Kristi@Blogging Tips´s last blog ..Income Blogging Guide Course Review My ComLuv Profile

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  19. Jamian (1 comments) Says:

    You said it was launched only on the Warrior Forum when was it, how long ago?

    [Reply]

  20. Paulo Almeida (1 comments) Says:

    wow! Great post!! Very interesting

    [Reply]

  21. joe from thebesthomebusinessopportunities (5 comments) Says:

    A good job. Well done. I’ve been to the site and it looks great and I’m a member now.

    [Reply]

  22. Simon from Free CNA Training (1 comments) Says:

    Did you buy back this blog Jason? (sorry, I haven’t visited here in a while) – good to have you back if so (I left because you left).

    Your membership site looks good, pretty simple yet effective.
    Simon@Free CNA Training´s last blog ..CNA Skills Required My ComLuv Profile

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  23. bed desk (2 comments) Says:

    Interesting stuff. I look forward to hearing more about your membership sites in the future. To a newbie, they definitely seem like more work than your smaller Adsense/minisites, but it also sounds like there is much more upside too.

    [Reply]

  24. marcus from money making ideas (1 comments) Says:

    Great idea. The fact that your product is a unique service really helps to gain and retain members.

    I was wondering. Does the script allow you to run an affilaite program for your membership sites.
    marcus@money making ideas´s last blog ..2 website ideas that make money. My ComLuv Profile

    [Reply]

  25. Denver from Financial Freedom (2 comments) Says:

    I am an Adsense fanatic and this is something new to me. Maybe I can take a look at it and the way I see it, this could be a good source of online money. Thanks for sharing!

    [Reply]

  26. Executive MBA (1 comments) Says:

    Admissions for July 2010 are now open and we are very keen to offer our management programs to you for improving the performance & productivity for fast career growth in Corporate World. The courses offered by IMT – CDL are crafted to equip students with tools & techniques so that they take up any challenges in highly competitive business world of today & tomorrow

    [Reply]

  27. dev from online executive mba (2 comments) Says:

    I mostly found that many sites about making money online, but all are either scam or requires membership fees, etc…

    [Reply]

  28. Online Marketing Course (1 comments) Says:

    First, I love your domain name and your branding as the University Kid. Even your confirmation page after I subscribed to your newsletter is great. Love the “thinking of money in class”. This site is wonderful.

    Super post on membership sites. Love that you showed your own example. Thank you. -Anne Marie
    Online Marketing Course´s last blog ..Online Marketing Course: Finding Content For Your Blog That You Don’t Have To Write My ComLuv Profile

    [Reply]

  29. Free Club Penguin (6 comments) Says:

    Yeah, Membership sites have some really bad reputation. But it really isnt that difficult to turn an image hosting or download site into some quick profit using a membership option.

    For me, I like to have both a free option and a paid membership, but when you do that you have to make the bonus of the paid membership worth to spend the extra money for, because if the free is enough for most people, you aren’t going to make much

    thanks for the post
    Free Club Penguin´s last blog ..Free Club Penguin Membership My ComLuv Profile

    [Reply]

  30. Peter Cheap Click Code Review (1 comments) Says:

    Membership sites is definitely very lucrative, but still it requires a lot of work to do in order to get people to stay. I also believe that small membership sites with a schedule 3-6 moths is better. This way you can get people sigh up and if you provide good content they will keep up those 3-6 months. Average time on good membership website is 4 months anyway.
    Peter Cheap Click Code Review´s last undefined ..If you register your site for free at My ComLuv Profile

    [Reply]

  31. HGV Insurance (1 comments) Says:

    I actually set up a membership site which is the easy thing, problem is actually getting people to sign up for membership. But just need to carry on.

    [Reply]

  32. seks market (3 comments) Says:

    Would be interesting to see your next post about the membership site and look at how things turn out.

    [Reply]

  33. mk akan (3 comments) Says:

    first time,here….love what am reading so far.
    question..should one have a kind of community first before one can start a membership site ?
    mk akan´s last blog ..Blog Post ideas-Question and Answers-and Blog Collaborations My ComLuv Profile

    [Reply]

  34. Bidet (22 comments) Says:

    Membership sites are a great way to make extra income but you have have content that people will pay for monthly and that is hard to do sometimes.

    [Reply]

  35. Geoff from Membership Websites (1 comments) Says:

    It requires a lot of time and commitment to develop a membership website that members will be happy to pay for. It’s a full time job in itself, if members are paying, they will expect regular updates, constant support, fresh content etc. Especially when there is so many other competitors (in most cases) that will offer the same for free.

    Sometimes it can be misleading to specify that membership websites are easy money/income.
    Geoff@Membership Websites´s last blog ..New Facebook page My ComLuv Profile

    [Reply]

  36. Internet Marketing Reviews and Rants (3 comments) Says:

    I agree with Kristi above…most membership sites, especially the most active ones (which are undoubtedly also the most profitable ones) seem to require a pretty heavy time investment. I realize some of this can be offloaded (forum moderation, for example), but if you’re the rainmaker for the site, it would still be a pretty large time commitment. Still, if you have something you’re passionate enough about, I can see where this would be a great way to go.
    Internet Marketing Reviews and Rants´s last blog ..Analysis Paralysis – Everything they Say is True My ComLuv Profile

    [Reply]

  37. Alan from Work From Home (4 comments) Says:

    I’ll definitely keep this in mind for my future challenges. I think there is great potential because many people are willing to pay for online content to access the right information they need and use.
    Alan @ Work From Home´s last blog ..June 2010 Blog Post Roundup My ComLuv Profile

    [Reply]

  38. Justin (3 comments) Says:

    The only problem with membership sites is the customer service. People just like to be a pain in the you know what.
    Justin´s last blog ..Moving Away and Why U-Haul Truck Rates Can Be a Tad Too Much My ComLuv Profile

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  39. Lisa Loves 50cc Mopeds For Sale (9 comments) Says:

    This is right up my alley. I hope you follow up on this post with some more membership site ideas. It would be awesome if I could come up with a great idea for a membership site and then just sit back and collect the fees!
    Lisa Loves 50cc Mopeds For Sale´s last blog ..50CC Mopeds For Sale My ComLuv Profile

    [Reply]

  40. Harshit Singhal (14 comments) Says:

    Nice post but actually membership sites require a lot of dedication and indepth knowledge of the niche.
    Harshit Singhal´s last blog ..Scientist vacancy in IITM Pune July-2010 My ComLuv Profile

    [Reply]

  41. SEO ninja (3 comments) Says:

    Sounds like an interesting area to get involved in!
    SEO ninja´s last blog ..Essential Tools For Ranking High On Google! My ComLuv Profile

    [Reply]

  42. Mariah Barnes (1 comments) Says:

    Are there any other sites that gives free sample products and some other free stuffs?~’~

    [Reply]

  43. Feller from Twitter knowledge (12 comments) Says:

    Is this blog abandoned or what?

    [Reply]

  44. Ricky Rozay (4 comments) Says:

    Sam question i asked twitter knowledge :/
    Ricky Rozay´s last blog ..Cashcrate Scam Stealing People Credit Card Numbers My ComLuv Profile

    [Reply]

  45. SQL Training (1 comments) Says:

    I think having a membership site is a good way of earning a good amount of money but it does require a lot of dedication to have a membership site

    [Reply]

  46. Andre (1 comments) Says:

    Passive income is always the best kind of income. A membership site is a great idea, but you need to provide something valuable, otherwise no one will sign up
    Andre´s last blog ..Geld lenen met negatieve BKR My ComLuv Profile

    [Reply]

  47. John from Funny signs (8 comments) Says:

    I was running ebook membership site (the one from fat ebook seller … or something) and my profit was so low (around 20 – 30 $ month) so I sold it after 3 months.
    John@Funny signs´s last blog ..Ne-Yo – Beautiful Monster My ComLuv Profile

    [Reply]

  48. güncel blog (1 comments) Says:

    Is this blog abandoned or what?

    [Reply]

  49. Jess Coffey (1 comments) Says:

    Great post and great work on your new site! We have a few membership sites out there and have found the most success with a trial price of $2 for the first month before enrolling them in the monthly continuity program.

    [Reply]

  50. Hali Yikama (2 comments) Says:

    First of this type of site we provide users the opportunity because of this beautiful and quality we give our respect. thank you.

    [Reply]

  51. dallas bankruptcy (1 comments) Says:

    Good! Thanks for sharing. Definitely this website will be useful for me. Thanks, mates.

    [Reply]

  52. CashOrPoints (3 comments) Says:

    Thank you so much. This site seems amazing. Will help me out a lot. I will think about joining it.

    Regards,

    [Reply]

  53. perde modeli (2 comments) Says:

    Thanks for useful and succesfull sharings.

    [Reply]

  54. thanos (2 comments) Says:

    great post once again mate…keep em coming
    thanos´s last blog ..GREAT TRICKTAKE INSTANT PHOTO OF YOUR SCREEN My ComLuv Profile

    [Reply]

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