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Why Membership Sites Make Such A Great Business Model For An Online Entrepreneur

Jan 28, 2008
The term membership sites refer to the fact that it is exclusively restricted for the use among the members. A membership site only allows its members to surf and view the inside contents of that particular site. Most of these membership sites are paid sites. The paid membership sites charge a nominal fee from the viewers who wish to be a member of that particular site. These fees are usually charged on a monthly basis. But there are sites, which have six months' subscription offer. It depends up on the regulation of the websites.

Membership sites offer various kinds of quality information to its subscribers. It also provides information, which the members cannot find elsewhere and will also search anything on the web if the topic for research is provided. There are innumerable membership sites, which offer variety of services to its members.

Some of these membership sites contain useful articles or information in a particular field or product or service and some publish the results of various tests and studies, while some membership sites provide access to web libraries or online libraries and other sites reference information. There are also some sites, which contain reviews, and there are some membership sites that act as a meeting place for like-minded people like the dating sites.

The question may arise to some people that why should one pay for one of these site. Well, the reason for paying is getting the best of all information. These websites provide specialized information, which the user would not be able to find anywhere on the web. There are users who pay for magazines, newspapers, books, clubs, and various other entertainment sites. So, users can also subscribe to these membership sites, which offer unique services and products and specialized information.

Membership sites make great business model for an entrepreneur. While thinking of building up a membership site the entrepreneur must decide if he wants to build up a free membership site or a paid one. Paid membership sites are most usually limited to a specific number of members. But the information and services remain special in these sites and thus it is necessary to limit the members. But free membership sites are easy to set up and easy to operate as well.

While setting up a membership site the entrepreneur must provide the viewers with timely fresh contents. If it is a free site then there should be the option of upgrade from free membership to a paid membership. A free membership site guarantees a long list of potential members. The site can earn through advertisements, as it will be available to everyone. Free membership sites are easy to run as they cost almost nothing to run, and yet the entrepreneur will have an almost unlimited number of customers and potential customers to market all kinds of products and services.

On the other hand, paid membership sites are a great way to generate passive income. Entrepreneurs who are looking for prospective customers for their products or services can set up paid sites, which will generate income and as well build up a list of prospective customers. Since it will be a paid site there will be the best group of the customers. And thus it will be easier to market products to these customers, whereas, in a free site the group may not contain the best customers.
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