5 Proven Premium Content Models

10 Dec 2009

membership models We had some good discussion about my last post, What if Atlas Shrugged, and although I would still love to hear more from you about that, I want to move on just a bit and talk about some proven methods that make it possible to capitalize on a world of free.

I’d also like to discuss some other ideas that I have for those of you looking to try something new or follow my lead.

In reviewing these options, I think it’s important to remember that although we are blogging, we are focusing on building a business, and not a blog.

Forums and Job Boards

Darren Rowse’s Problogger Forum is probably the best example of this because it has a low priced entry and allows for thousands of paying members. In Darren’s case, he started off charging $1.95 per month for access to his forum community, which is a combination of his advice and the advice of other bloggers in his community.

He recently raised the price in order to prune the numbers a bit and create a more serious atmosphere, but I think he also did it because the numbers supported it.

With just his forum alone, Darren clears 5 figures per month, excluding the fee he pays his community manager. Still, the profit margin has to be relatively large, and is a proven example of how you can leverage a large community without them thinking you are selling out.

Job boards, such as the ones on Problogger or Freelance Switch, are also great. These are free to the job seeker, but cost employers money which they are already used to spending. Craigslist also makes use of this tactic.

Free and Premium Membership Levels

Another option is using tiered membership levels, like David Risley does at PCMech. By giving away free content and attracting a large following, he can create a premium membership that includes more advanced, more timely, and more detailed information.

Those that want to learn the basics can cruise along at the free level, without pressure to pay a cent. However, those that are looking for more can sign up to gain access to the “behind the scenes” content that delivers much more value.

Many web services use this same model as well. For instance, Animoto, the awesome video mixing application, has a free membership that makes creating videos easy. But if you want to make longer videos or download them in HD, you have to upgrade. JibJab uses a similar model.
Sites like Flickr, Last.fm, and Yahoo mail also have free and premium memberships.

Packages or Training Programs

If you don’t have premium content that you want to sell on a monthly basis, consider modeling what many fitness web sites do, which is to give free access to forums and blog posts, while charging for training plans.

Beginner Triathlete is a great example of this, as they sell 3 tiered levels of training plans, each around 6 months. This is a micro-continuity model that creates the appearance of a membership without having to lock people in on a monthly basis.

Another example of this is Dave Navarro’s Internet Marketing workshops, which are several modules of advanced content that can be purchased in a monthly or single payment purchase.

Very similar to the premium content model, this allows a bit more flexibility because it is a short-term investment.

Consulting

In this case, you aren’t really selling your content, but you are selling your expertise. This model allows your readers to gain personal access to you, in return for a monthly fee. You can also sell consulting on an hourly basis, but I find that model to be limiting because you are trading hours for dollars.

Sonia Simone just launched a cool program using this model, which includes workshops, audio content, and workbooks. Her clients receive access to her for a small fee each month, which is cheaper than paying by the hour but still very valuable.

Physical Products – Newsletters, Podcasts, and DVD’s

There are a lot of internet marketers that use this model. Guys like Frank Kern, Mike Filsaime, and the Stompernet crew have made a killing by offering a combination of newsletters, DVD’s, magazines, and CD’s.

Some programs offer several different content options, such as training DVD’s, monthly case studies and tips via a magazine or newsletter, or even full package systems.

JB Glossinger, the Morning Coach, uses the premium podcast model in order to make good money by recording 15 minutes of audio each day. He got started by using iTunes and giving his program away for free, but now he gives one day for free while charging a monthly fee for the rest.

Even regular magazines fall into this model, along with memberships such as Netflix or Gamefly.

Experimenting

You don’t have to stick to one of these models; in fact, I recommend you try something new. Let’s face it, as systems like these become more widely used, marketers will experience some sort of membership fatigue when trying to convert their current audience.

There are only so many things that consumers want to pay a monthly fee for, and if someone else has their membership dollar, then you’ll have to do a lot of convincing to change their mind.

Some options I’ve been considering on other blogs are:

Giving away a portion of each post while charging for the 2nd half
Charging on an ala-carte (per post) basis
small, inexpensive workshops that aren’t time based, but module based
Charging a one time fee for “forever access.”
T-shirts and merchandising
Paying for ease of use in other formats
Blog networks that use a collective membership

I didn’t include E-Books in this because they are being sold in abundance, and I think it’s wise to pursue something other than E-Books if you want to distinguish your business. Of course, there are other models I probably missed, but these 5 cover some of the easiest and most effective.

Sites like Amazon are already starting to charge for Kindle access (I’ve sold several subscriptions to this blog using that method), but that model hasn’t gained a lot of traction.

I really think that sometime soon, online content will shift back towards the producers, rather than the consumers, but I prefer a happy medium where bloggers get paid for their work and consumers get high quality content at a reasonable rate.

Did I miss something? Have an idea or comment? Make sure to let me know by leaving a comment.

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