Setting up a proper and fully functioning membership site is not for the weak hearted. It is truly a combination of good writing skills, proper marketing and having the technology behind it to support the various functions needed for the smooth running of a membership site.
Nothing is more frustrating than having awesome writing skills but let down by technical glitches and membership issues day after day.
We aim to make this venture as a worthwhile experience for you and for us as well. Just like any other business venture there will be ups and downs but as much as possible we will try to make good on our promises so that you can concentrate on creating awesome contents.
Below are some details about setting up and running a membership site. The figures given below are just approximations but they should give you a rough idea on how much it would cost to set up and run a typical membership site.
With a typical membership site around 20% of the income generated will go towards marketing activities while around 15% will be allocated for operations, maintenance, technical support and customer support.
However during the initial stages we might need to spend more on marketing activities and as such the percentage for marketing activities will increase accordingly. At times it might even go up to around 40% to 50%. Again, remember that this is for the initial stages only. Later on it will come down.
We will cover all this without taking anything extra from your portion. We will work out the figures and make adjustments when necessary.
To be fair to everyone there will be 3 separate distribution formulas for you to choose from as the writer/content provider. You can choose whether you want to receive 30%, 40% or 50% of the monthly collection of the membership site.
For us to cover the inital startup costs we will need to spend our own money first to equip the site with the proper hardwares, softwares and manpower. We estimated that for each new membership site we will need to fork out roughly USD1800 of our own money first.
This is roughly the amount of money we will be risking each time we launch a new membership site. We believe this is money well spent considering the potential income we can generate from these membership sites over time.
Keep in mind that the amount above is only for the inital startup costs. There will be other ongoing costs as well that we need to cover first as we progressively build up the membership numbers. The first few months will be tough. Thus the need for us to do our part (marketing) as effectively as possible to ensure that we can break even and start making profits as quickly as possible.
Also keep in mind that since we have no prior knowledge of how you will perform professionally throughout this JV, we will also be taking a risk in choosing you as a JV partner. Rest assured we have seen a few potential JV partners who behaved like "divas" over the last few months. Fortunately they are not with us.