Use the Freemium Model of Membership Marketing For Business Success

Subject : Use the Freemium Model of Membership Marketing For Business SuccessIn this article, we're going to discuss "membership marketing", and how it's almost a requirement for a successful website. If you're selling anything online, whether it's ebooks, digital products or anything of that sort, then the membership system we discuss below can deliver those products in the most effective and profitable way.Business Success Means Avoiding Churn and Increasing Revenue Per Customer.To be a business success, you'll need to avoid is customer churn (or "turnover"). If you get 100 new members, but 99 of them quit after 30 days, it'll be hard for your business to survive. In a membership context, it's the period of time someone will keep paying their membership fees. So while it's vitally important to constantly acquire new customers, it's just as important to maximize the revenue of each customer you already have. So what we're talking about is the backend, and the marketing funnel you have in place.With a subscription membership model - where you have a recurring billing system in place - the backend is the recurring fee itself. The issue becomes keeping people as members of your membership sites.Let's see examine how this plays out in the context of three popular business models:Traditional Product SalesLet's first consider the traditional Internet marketing (publishing and sales) model, which is used by most online business owners. In this model, you create a product and a sales page, drive traffic to that page, and hope the traffic converts into sales. The average for that conversion rate is somewhere around 1% to 2%.Assuming you have a $37 product at a 2% conversion rate, it means that for every hundred people you send to that page you're going to sell two of those products at $37 ($74 total), and you'll have a visitor value for each of those 100 people of $0.74. Recurring Membership The average conversion rate for a recurring membership site is often less than the traditional one product sale model; it's generally 1% or less. So let's now assume now that you're going to charge $17 per month, rather than the original $37 product price point. But we start to encounter churn with monthly billing. In our experience, the average membership stick rate is between three and five months.So for every 100 visitors, we'll get one membership sale, and that customer can be expected to stick around for approximately four months. That means you're going to generate $68 in revenue from that one signup (four x $17 = $68). That gives you an average visitor value of $0.68. When you use the membership model, you can also put backend offers in place. So once you already have a paid member, you can assume additional backend sales and commissions from that member - around $5 per month. Now you have that one member, and they're paid the $17 for the first month - will likely do so for about four months - and they're also worth an additional $5 per month over that same period of time. So now you have $88 from that signup, and the average visitor value for the 100 visitors is $0.88. Single-Payment MembershipThe next structure is a paid membership with a single payment. Your conversion rate will increase because you're asking people to make less of a commitment, and a membership generally has a higher perceived value than a simple product sale. You can expect a conversion rate of 2.5% to 3%.Because there is less commitment, you can charge more still keep the conversion rate up. So let's assume a one-time fee of $37 instead of that $17 recurring. Now your churn goes way down. The customers have already paid, so very few of them will actually terminate their membership. You'd be safe in calculating an average stay of 12 months.So the calculation is as follows: You're going to see a 3% conversion rate, and the total one-time fees are going to be 3 x $37 = $111. Factoring in the backend offers ($5 a month per paid member), and over 12 months you're looking at $180 in backend sales and commissions, for total revenue of $291. This brings your visitor value up to $2.91. But there's an alternative model that blows all three of these out of the water when it comes to down to making money for you - the Freemium model.The Freemium Model.The Freemium model is basically a free membership with an upgrade offer. It works like this: you put a "free" offer in place on the front end of the site (in a later article we'll discuss how to make this free offer not appear to be "free" - and why you'll want to do so), and you're likely to see a front end conversion rate around 35%.If you then place a compelling offer on the backend, you'll see a conversion rate between 5% to 10% on that offer. It's often much higher, so let's use 10% for our analysis.This means that for every 100 visitors - you're going to get 35 free members, and then a 10% conversion rate on these 35 members on the backend. So what you end up with on average is 31.5 free members and 3.5 paid members.On your front end that's 3.5 x $37 = $129.50. The paid member back-end value is $5 x 12 Months x 3.5 People = $210. The free member back-end value is $1.50 x 12 Months x 31.5 People = $567. Adding these amounts and you have $129.50 + $210 + $567 = $906.50, so your average visitor value is $9.06.That's a big difference from the more "traditional" models we discussed above (and more than 10 times higher the most common product sale model)!Here we've opened the doors, we hope, for a lot of people to recognize that this Freemium model is a very profitable model. Click Here to Learn More about the Freemium Model

Product Review: Web Traffic Juggernaut

Web Traffic Juggernaut is a site that says it guarantees more web visitors and free online advertising with very little effort or cost. So I decided to put it to the test...
My first impression was the site looks professional and clean, with an attractive look and feel. It is easy to read and understand. Joining the site was easy and painless--they do offer 2 upgrade options but they are not required to gain the benefits.
The Members Area is very well laid out and intuitive--I could figure out what to do after only a few minutes and was able to get up & running in less than 5 minutes. Inside the site, you create links and ads--the links you simply enter any URL links you use into the generator and it transforms them into "Juggernaut" links. You create ads for anything you want to promote using the Juggernaut Ad Generator, which is very easy to use. You can create as many links and as many ads as you like. And they are organized in a logical way--links are displayed in the order you create them but also your 5 most recent links appear on the main page for quick reference. Also, since the link generator is the tool you'll use most, it is also right at the top of the main page when you login. Very smart!
After you've created at least 1 link and 1 ad you can start to generate free traffic. Just use and promote the new Juggernaut link instead of the original source link you had. Every time the Juggernaut link is clicked, the page loads followed by a small ad window in the lower right corner. It displays 3 ads PLUS an image with your affiliate link that goes back to Juggernaut. So if anyone clicks the Juggernaut image they see the site, and if they signup they become your referral. It's a great viral feature because you can build referrals without even trying to just by using the site.
Now every time the ad window displays (your Juggernaut links get clicked) you earn credits that get YOUR ad displayed in the ad windows when other members' links get clicked. So the more clicks, the more times your ads get displayed.
And this works virally--meaning as you make referrals into Juggernaut (either by promoting it or just using it and visitors click the Juggernaut image on the ad window to join) you also earn ad credits on THEIR link clicks. And this works up to 5 levels deep. So you can create a massive amount of free ad views and web traffic by referring others to Juggernaut also.
I didn't get to test the full effect of a big downline yet (I just got the tool) but I can tell you the rest of the site works exactly as stated--my links got clicked, I earned credits, and my ads got displayed. Juggernaut even tracked my results so I know how many clicks and how many ad displays. That was an impressive unadvertised extra feature.
There is one more benefit and feature which might be the best of them all--downline emailing. You can email your downline with offers, promotions, or whatever you like, and here is where Juggernaut really shines. They took time to make the emailing often enough that it's valuable as a user, but no so often that it's a burden to your downline. But the best part about this feature (and actually the credit earning too) is that they use a unique dual-matrix technology that builds your downline in 2 ways. First is the typical way--you refer members, who then refer members, etc. But the 2nd matrix is a "forced matrix" that places all new members in a downline in sequential order. Without getting technical, what it means is that if you join and just stay a member (even if you don't do anything) your downline will grow automatically because new members will fill in your forced matrix. And you earn credits on them too. Now THAT's cool.
Overall I have to say I am impressed with Web Traffic Juggernaut. It is simple yet powerful, and delivers on its promises. Highly recommended to anyone who wants to increase traffic and advertising.
See it & join here: WebTrafficJuggernaut