How to create a membership site: Pros, cons, and examples from Japan

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  1. Introduction
  2. What is a membership site?
  3. Advantages of building a membership site
    1. Access privileges for members only
    2. Marketing efficiency
    3. Brand value improvement
    4. Stable earnings
  4. Disadvantages of building a membership site
  5. How to create a membership site
    1. Using WordPress
    2. Using an application service provider (ASP)
    3. Using a social networking site (SNS)
    4. Commissioning a developer
  6. Considerations when creating a membership site
    1. Be clear on your objectives
    2. Equip your site with necessary functions
    3. Take security measures
    4. Use appropriate pricing
  7. Examples of B2C membership sites
  8. Examples of B2B membership sites
  9. Making your membership site a success

Membership sites are websites that can only be accessed by members. They can deepen the relationship of trust with users and offer several benefits to help grow your business. However, it is important to create a membership site that is right for your business and ensure it is properly managed to get the most out of it.

Understanding the big picture is key to building a successful membership site. This article explains basic concepts, pros and cons, and development methods and provides real-world examples of membership sites.

What’s in this article?

  • What is a membership site?
  • Advantages of building a membership site
  • Disadvantages of building a membership site
  • How to create a membership site
  • Considerations when creating a membership site
  • Examples of B2C membership sites
  • Examples of B2B membership sites
  • Making your membership site a success

What is a membership site?

A membership site is a members-only website that only registered members can access. The goal is to have a strong connection with users by sending out information and providing content only members can see.

In contrast to open sites, which can be accessed by anyone, membership sites are sometimes referred to as “closed sites.” This system is a powerful way to differentiate yourself from the competition and increase the number of repeat customers.

Advantages of building a membership site

Here are the specific benefits of building a membership site:

Access privileges for members only

By providing members-only content and services, you can give your members a sense of unique value. This makes members feel special and increases their loyalty to the site.

Marketing efficiency

You can use member data to create effective marketing strategies that target the audiences you want to reach. This helps you reduce unnecessary advertising costs and maximise your return on investment (ROI).

Brand value improvement

By bringing members closer together and creating a sense of exclusivity, you can increase the stability and value of your business. You can also offer members-only benefits to further increase customer satisfaction.

Stable earnings

Adopting a subscription-type fee structure for the member site can result in regular revenue and stabilise your earnings. If you can build an attractive member site that encourages long-term membership, it will be easier to forecast earnings and plan your business, resulting in greater stability.

Stripe Billing makes it easy to set up and manage your subscription plan. You can also use the analytical tools, using the standard functions for tracking sales and analysing cancellation rates, which are useful for long-term business planning and expansion.

Disadvantages of building a membership site

While there are many advantages to a membership site, there are some disadvantages to consider when implementing and managing one:

  • Site quality: To increase member satisfaction, you must continue to deliver high-quality content on a regular basis. To do this, you need people with expertise in each area. Creating new, high-quality content and updating old content to maintain a site can be time-consuming.

  • Operating costs: One of the disadvantages of building a members-only site is the increase in operating costs. There are initial costs to implement platforms and payment systems, and you will need to continue to recruit members even after the site is up and running. If it is difficult to find dedicated staff in-house, you can outsource the operations and management, but this will incur additional costs.

  • Registration process: Especially for first-time users, registering can be a psychological hurdle. You need to make it easier to register by reducing the amount of work involved, simplifying the registration form, etc. Clearly state the benefits of registering to encourage people to make the effort.

How to create a membership site

There are several ways to create a membership site. Each has its own characteristics and advantages, so it is important to choose the method that best suits your company’s needs.

Using WordPress

You will need to purchase a domain and sign a server agreement, but you can install WordPress and build a membership site. WordPress comes with a number of templates and plugins you can use to build your site, so you can create it without any coding skills. For example, if you install the BuddyPress plugin, you can use WordPress to create a social networking or community site.

It is also important to pay attention to security and operations management by enabling secure sockets layer (SSL), encrypting communications, and performing regular updates.

Using an application service provider (ASP)

By using an ASP (e.g., cloud package) that has all the features you need to build a membership site, you can create a full-featured site that is easy to manage. It is a good idea to choose an ASP that has the necessary features to meet the needs of your business, such as payment processing, email newsletter distribution, and external integration.

Using a social networking site (SNS)

You can use private Facebook groups, official LINE accounts, and others to distribute exclusive, members-only content. While these are free to use and you can easily get started without any special knowledge, there are a few things to keep in mind.

For example, Facebook users tend to be older, so it might not be suitable for businesses that target younger people. It is important to note that official LINE accounts are a one-way information distribution system from businesses to members, and members cannot interact with each other.

Commissioning a developer

If you want to build a highly original, authentic membership site, you can build it from the ground up, without relying on existing systems or services.

If your company does not have in-house expertise, or if you are short on staff and time, you can outsource the work to a development company. However, development companies specialise in different areas, so be sure to choose one that is the right fit for your company.

Considerations when creating a membership site

If you have a clear purpose for the membership site, it will be much easier to create a site that is optimal for users, as the site’s development and management will be consistent. Here are some important considerations:

Be clear on your objectives

Take a close look at your goals when creating a members-only site. For example, if the goal is to generate recurring revenue, you need to consider a subscription model that fits your goal. You should also consider how to differentiate between free and paid content and strive to create a site users will find value in.

Equip your site with necessary functions

The ability to send authentication emails and log users in when they register as a member are basic user management functions that are important for any member site. You should also include any necessary features for your member site’s purpose and target audience, such as content distribution, payment, community, and analytics tools.

Take security measures

Security measures to protect members’ personal and payment information from the risk of data breaches and cyberattacks are important. Be sure to encrypt and store users’ passwords and personal information, enable the entire site with hypertext transfer protocol secure (HTTPS), and implement an SSL certificate. You should also implement authentication systems such as two-step authentication (2FA) to enhance login security.

Use tools to manage your site’s vulnerabilities, perform regular security scans, and hire specialised firms for audits. The Stripe payment system is compliant with Payment Card Industry Data Security Standards (PCI DSS) and includes advanced authentication features, such as 3D Secure and fraud detection. This enables stronger security and ensures secure transactions.

Use appropriate pricing

Understand the value of your company’s membership site and charge accordingly. If your pricing doesn’t make members feel that they’re getting value for their money, they’ll leave.

You can also reach a wider range of people by offering flexible pricing that caters to different user groups. However, be careful not to price too low to encourage users to sign up, as this might not be profitable and will put pressure on profits. Make sure your pricing strategy is designed to ensure long-term revenue stability.

Examples of B2C membership sites

B2C membership sites build brand equity and improve customer loyalty by offering benefits and convenience. Here are a few specific examples:

  • Fan clubs: These sites are developed in a wide range of fields as a place to create communities of people with a strong interest in specific topics. Fan club sites for artists and professional sports teams offer features such as priority ticket sales, event information, and exclusive video messages.

  • Video distribution: This includes the distribution of sports events and on-demand film and TV viewing services.

  • Education and skill improvement: There are different types of fixed-fee online schools, from learning by watching videos on your own to online cram schools where you learn one-on-one with a teacher via video calls. Live seminars, webinars, and broadcasts by experts are also popular.

  • E-commerce: There are many B2C membership sites, including major e-commerce malls such as Amazon Prime and Rakuten Ichiba, as well as sites for food, apparel, beauty, home appliances, and more.

Examples of B2B membership sites

B2B membership sites play a role in improving business efficiency and strengthening collaboration between companies by providing a system for sharing information and assisting customers and business partners who need specialised information.

  • Pharmaceutical companies: These healthcare professional sites provide the latest product information and treatment guidelines for doctors.

  • Software licensees: These sites provide application programming interface (API) documentation, code samples, and information sharing for programmers and engineers.

  • Financial industry: Services such as business loan applications and transaction history management are available on corporate financial services membership sites.

  • Real estate: These sites provide real estate business consulting and conduct seminars for real estate business owners. Business support services can help business owners significantly improve their sales capabilities.

Making your membership site a success

The success of a membership site depends on its ability to provide special information and services users cannot access without registering. Providing valuable content and unique benefits attracts new members and improves retention rates.

As with any website, it’s important to consider security and usability. These are important factors in the site’s reliability and growth, and addressing them is key to success.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.

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