Developing a subscription based site is a difficult task, as you must find a niche that is not occupied with free alternatives that are already thriving social networks. Subscription based sites are, however, one of the most sustainable and profitable ways to make money on your website. Subscription based sites offer something other models don’t, a guaranteed revenue stream once your site is active. As common as advertising supported sites are, unless you have a great deal of traffic, it is almost impossible to maintain a website for profit without selling something.

The cost of getting a subscription site off the ground is low, as all you need to get started is your hosting, a website design, some content management software, and software for managing members. Many of the membership site applications available have content management incorporated, allowing you to keep everything on one system. And because the software tends to have a set cost, the only recurring cost to you is your hosting fees. This means you will be receiving income and your only costs will be centered on keeping your site online, which is relatively low, especially for a site that is just starting out, and the cost of maintaining content, which you may be able to manage yourself.

In the end, while many people will opt for the free option, having an exclusive site is a great way to make money off your idea. You can even manage a site with a hybrid model, offer a free mode with limited features and advertising, and let users know if they sign up for a recurring membership, they will have full access. This is commonly used for sites that are social networks, like forums, and it is important that you make your differentiating features a big enough deal that people will be willing to pay extra every month or year for a membership.

Posted by Ian Logsdon.
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