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Members Website – The Compounding Income Effect of Membership Websites

The most efficient and effective method for generating a steady stream of income is recurring billing. Some of us dread getting our recurring electric, telephone, and cable bills. Wouldn’t it be nice if we were the ones collecting a recurring payment instead of making them. Here’s a secret. Over the last 3 or four years, more and more online business have been moving to recurring billing business model more commonly known as a membership websites. At the time of this writing we are in the midst of an economic downturn but that has not slowed the successful launches of member websites. I am sure you are all wondering why now.

I was privy to a conversation with my mentor about the biggest regret of some of the “gurus” of Internet marketing. Upon reflecting, the biggest regret of those who are now our mentors is they did not include member websites early in their businesses. Of course they now have these websites and are teaching that online business should include a member site. I was curious as to why such a obvious error was made by some really smart people. As it turns out, it was not so much an error as a lack of opportunity.

You see, in the not too distant past, membership software required a huge investment. We are talking $10,000 plus. If you were able to justify making such as investment, the software was difficult to set and maintain. I read that it was almost a requirement to have a tech guy on call 24 hours to just troubleshoot and fix your early membership site.

Of course the advent of WordPress removed a lot of the technical requirements for online business owners. Today inexpensive and reliable WordPress plug-ins make it possible for more and more people to own and operate membership websites. The proliferation of member sites with good content met a previously unmet demand and the number of subscribers increased correspondingly. The recurring income for these website owners had a compounding effect offer by no other passive income model.

It is easy to see why the compounding effect of a membership website is so lucrative. If you create a membership website and charge a monthly subscription fee of $20 and you have an average of 200 subscribers, your monthly income will be $4,000. Over time, you have the potential to add hundreds or thousands of subscribers to your member website. There are people who earn millions of dollars a year doing nothing but operating membership websites.

What is the secret of these millionaire membership website owners. They took action by starting with their first membership site. It has never been easier to have your own membership website.