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     Some websites are offering membership. Does membership helps increase profit?

Money
     Frequent-buyer programs (i.e., those that issue points that can be redeemed on future purchases) make members come back more often. By simply calling those points "money" (which is only valid on your site, of course), you can make even more members come back. It's just changing what you call it; because people who live in the capitalist world are obsessed about money, they are eager to come back to your website to use "money" they have earned.

Don't Let Them Use Money Up
     When members use up all the points (or "money") they've earned, that could be the last time they shop at your website. To avoid this, you must issue some of your "money" on every sale, even when a customer pays entirely with your "money." In this way, the customer always leaves your site with your "money," and this makes customers remember your website.

Paid Memberships
     Most memberships are free, but paid memberships make more customers come back. Free membership has no perceived value with customers; "free" means "free." They may sign up for a free membership, but they will soon forget about it. On the other hand, if people pay for a membership -- even just $5.00 for a lifetime membership -- they will remember the fee they paid. They will try to take full advantage of the membership, so they will keep coming back. It'll take more effort to sell paid memberships, but if you have unique products, it's not too hard. You don't have to charge for membership, but it is worth considering.

Note
     At some websites, you have to be a member to browse. You should let visitors browse your site without a membership (unless members-only content is your product). People have to see what you offer before they can decide to be a member. Otherwise, people will just leave your site.

© November, 2006



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