Posts Tagged ‘Freemium’

Survive Tough Economic Times with MME4

Survive Tough Economic Times with MME4

These tough economic times have many people searching for income opportunities that put them in control of their own financial futures. The internet is one of the ways that some people are finding to open new earning potential. Unlocking the right tools for the internet provides the assistance needed to make earning online a reality.

Simon Hodgkinson and Jeremy Gislason have been working for two years to accumulate the tools that will help make internet earning easier for the beginner and the experienced online entrepreneur. The Marketing Main Event 4 is the fourth installment of the highly successful marketing series.

MME4 delivers the component necessary to create a turnkey marketing system with the ability to launch internet income to the next level. Simon and Jeremy have been using the MME4 system and it has already generated millions of dollars in sales for them.

Reasons to Choose Online Income Avenues

1.Control over work hours – no matter what business you choose to pursue success takes consistency and diligence. The great thing about online businesses is that you can schedule your work around you and not around the business. The internet is open 24 hours a day and customers are visiting all the time. Make work happen when you are at your peak.

2.Portable office – Internet access is available almost anywhere in the world. This means that you are not tied to one location to complete your work. Take your office across the country, across the state or just across the room.

3.Low overhead – developing an online income stream is not free. It does take a little money, some time and some experience (or the right tools). Online income is almost free when compared to real world alternatives.

4.The business runs itself – once the online business is established it will almost run itself. You will be in a position to earn income even when you are away from the office.

5.A home office saves money – there are a number of deductions that are available for those using a home office. You will also save on commuting expenses.

6.No stress to quit another job – you can continue to work full time at another business while you build your online business. This leaves you with the comfort of a regular paycheck and benefits while giving you the ability to build an online income stream.

7.No limits – the internet has more opportunities for entrepreneurs than has yet to be considered. Tapping into the potential means that you can focus on one online business, expand to multiple online businesses or build and sale online businesses. The only limit is determined by you.

The internet is a great way to expand your earning potential with a limited amount of time and resources. Online businesses can be the answer to the economic troubles that are facing the world by giving you more control over you life and over your financial future.

There are a number of courses and systems already available on the internet designed to explain the ways to make money online. MME4 offers more than course material. It is a “make money tomorrow” system where almost all of the work is already done for the user. MME4’s point and click components is perfect for the beginning entrepreneur or for those that desire to expand their online empire.

MME4 will launch on July 14, 2009. For many eager internet users this will be the day that helps launch them towards financial freedom. Tough economic times call for new innovations. MME4 desires to be that innovation for internet businesses around the globe.

Click Here to Learn More About Marketing Main Event 4

Use the Freemium Model of Membership Marketing For Business Success

In 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 Sales

Let’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 Membership

The 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