Developed over two decades, WordPress stills remains its leading position in the content management system world. Primarily coming as a free CMS platform, WordPress is cared about not only how it makes money but also how people can earn a living from it. As we all know, WordPress works as a core tool for developers to build supportive plugins and themes.
When making WordPress plugins, themes, or any other related products, you try to work out how much to actually charge customers. In fact, it’s even more important to sort out billing methods to go with.
There are various ways to earn an income via WordPress plugins and themes. Some provide free versions, others expect paid upgrades. And the remaining offer premium only. It’s possible for you to build free plugins then require users to buy must-have add-ons too.
Another pricing model that you might hear of a lot of time is Membership. Generally, it comes as an effective way to boost revenue. In this article, we’ll define the membership pricing model in the WordPress niche as well as its benefits. But more importantly, we shouldn’t miss 4 key secrets when applying this pricing strategy.
What is the Membership Pricing Model in WordPress?
The toughest thing of launching a new product doesn’t come from building but pricing it. Each plugin or theme brings a unique value to customers. And how you evaluate its price to create profit and at the same time satisfying buyers is not an easy task.
Most WordPress businesses sell the core product and its extension separately. As a matter of fact, only one or 2 add-ons appears simple for buyers to make decisions. However, what if you build 20 to 50 significantly related products, it’s pretty difficult to own them all at once. In some cases, they have to pay up to thousands of dollars to fully take advantage of your products.
That’s where membership pricing strategy comes in handy. You can group relevant items as packages then sell them at a much lower price. Each package includes a set of products and supporting services. The higher level their membership is, the better chance they can buy great products at reasonable prices.
Benefits of Applying Membership Pricing Strategy
Offering membership pricing creates a win-win relationship between your business and customers.
For business, it helps boost sales and revenues. Iťs proved that subscription models create 217% more profit for businesses than a one-time payment model. People are likely willing to pay if they see discounts on multiple products. It’s dangerous when you just force them to buy must-included extensions at an expensive price. They will feel you’re trying to make money from them.
This type of pricing strategy also aims to reduce the marketing cost since you don’t have to promote each product individually. You can save the extra expense for internal development or future product launch.
On top of that, these loyal members allow you to grow your online community quickly. Once joining groups, they can quickly receive support in the group from your team or even other members.
In addition, if you promote the right membership packages and add-ons to the right people at the right price, it remains fundamental to both member acquisition and member retention. When you realize your member demands, developing more flexible and effective pricing strategies becomes much easier.
Users will pay less compared to buying plugins and extensions separately since the package price is lower than the real cost of each one combined. In some cases, they can get discount privileges when buying future extensions as well.
After you understand what the membership pricing model is and its benefits, we’re going to give some advice on building an effective model.
#1 Offer Multiple Pricing Packages
Every membership strategy includes a set of packages, from primary to higher levels. A package includes a collection of products and services. The package type and its price will decide your membership level.
Depending on their specific demands, users can purchase packages that best fit their businesses. Take the PPWP Pro membership program as an example, we provide three types of member levels: Basic, Standard, Elite. Personal blogs prefer the basic package which includes 3 popular extensions. Small and Midsize businesses often choose the standard one since they can get more extensions and use them on multisite. Elite package, meanwhile, supports big business better.
Noticeably, you should keep these options as simple as possible otherwise they will overwhelm users. If members don’t see any differences among these packages, it’s difficult for them to select the most suitable one.
#2 Choose Value-based Pricing
Value-based pricing comes as the gold standard of pricing. Most business owners are looking at their competitors to consider their product cost. Some even just guess and decide the price. Consequently, your product will be completely off-value from where it needs to be.
A higher price equals good quality. You must clearly point out the value customers will receive if they pay more.
#3 Highlight the Most Expensive and Extensive Package
When displaying membership packages, some business owners often order them from the lowest price to the highest. In fact, this method isn’t effective. People are likely to pick the first thing they see on the list. Then, you might have more sales but it doesn’t bring a lot of revenue.
It’s recommended to give members the first good impression of the best membership package by placing it in the middle of the list. As a result, buyers can focus on it and temporarily ignore others. You can also make other options smaller too.
#4 Upsell and Cross-sell Members
Turning a lead toward a customer is something exciting. However, retaining them as well as making them pay more is the true challenge.
If you just let users leave forever after paying one time, you’re missing something huge. The same thing goes for WordPress businesses.
For companies offering to upsell and cross-sell, 70-95% of the revenue comes from upsells and renewals on average. You should build a strong buyer journey for your consumers by giving them the ability to upgrade the accounts.
To gain a good relationship with current members, you should provide better customer support services. Make sure you reply to their request as soon as possible anytime they have a problem with your products. Users even have more concerns while using products requiring technical knowledge like plugins and themes. And don’t forget to send them a personal email or chat to show them your premium offerings.
You’ll go to a dead end when trying to find out a one-size-fits-all membership pricing strategy solution. Plus, what works for one business doesn’t mean it works for the others. The main goal is the pricing model must bring benefits to both customers and developers.
We’ve walked you through the advantages of membership pricing strategies as well as the 4 key secrets to design a successful model. If you find this article informative, let us know about your thoughts and ideas in the comment section below!