The Ultimate Guide to Choosing and Building an Efficient Membership Plan

To create a membership plan, decide what members get, how much and how often they pay, and how many levels you need. Keep it to a few clear tiers with simple names, then set them up in a membership plugin like Ultimate Membership Pro with a payment gateway and content restriction rules. Test the sign-up flow before launch, then track conversion, retention and churn.

How you structure and promote your membership plan is essential to the success of your entire membership site.

Think of it this way: one of the (many) reasons the fast-food industry works so well is because they understand the importance of keeping things simple — which is why they come up with bundle meals on popular items, making it easy for customers to order and pay. The same applies to Apple products as well: instead of pushing forward a seemingly infinite (and confusing) variety of customization options, they keep things in pre-established packages. Getting custom services is great — but when choosing a product requires too much research and answering too many questions, it can frequently feel like a lost battle for customers.

The subscription economy quickly picked up on this strategy and now provides users with easily-understandable packages of options to choose from. This makes it easier for customers to make decisions about their purchases — and it makes it easier for them to “digest” the financial side of buying something new as well.

So, how do you build a membership plan or subscription plan? What are the elements it should include — and how do you make sure that it’s both understandable and attractive to customers? What’s more, how do you structure multiple plan options to make them attractive to different types of users and leave room for upsells?

This guide covers the ins and outs of building membership plans and subscription plans for your site, from plan types and structure to naming and setup.

What Is a Membership Plan?

At its core, a membership plan is a structured offering that outlines the access and benefits provided to members of your website. It acts as a roadmap for your members, guiding them through the available features and services based on their chosen subscriptions. Most often, these plans are provided as month-by-month subscriptions, but this is not mandatory.

Each plan typically comes with a corresponding price, duration, and level of exclusivity. Once someone creates an account and buys a membership from you, they get access to specific pages (as promised in the features displayed under each plan.)

Many memberships are billed monthly, but quarterly and yearly subscriptions are common too. Usually, an automatic renewal is set in place so active members don’t have to perform any manual actions to continue to enjoy the benefits of their chosen plan (as per the description on your pricing page.)

Sometimes, membership site owners let members know by email when their plan will renew — but more often than not, they will not send an email unless the member’s payment method is about to expire.

Membership Plan vs. Subscription Plan: What’s the Difference?

The two terms are often used interchangeably, but they describe different things. A subscription plan is a pricing model: the customer pays a recurring fee, such as monthly or yearly, until they cancel. A membership plan describes access: what a member can see and do on your site, and the benefits that come with it.

Many membership plans are sold as subscriptions, but they don’t have to be. A membership can also be free, paid once for lifetime access, or valid for a fixed period. For a deeper look, read this comparison of subscriptions vs. memberships.

How to Create a Membership Plan in 10 Steps

Creating membership plans is usually straightforward, especially with the right membership plugin. Whether you call it a membership plan or a membership program, the process looks like this:

1. Choose the Right Membership Plugin

Research and select a membership plugin that suits your needs. Look for one that supports several plans, flexible billing and the payment gateways your members use. For example, Ultimate Membership Pro lets you create unlimited Memberships, sell them as one-time or recurring payments, and connect them to email marketing tools such as Mailchimp and ActiveCampaign.

2. Install and Activate the Membership Plugin

Install your chosen plugin on your website and activate it. This is usually very straightforward as you just have to click a couple of buttons.

3. Set Up Your Payment Gateway

Configure the payment gateway integration by entering your payment gateway credentials. This allows your users to make payments for the membership levels. Remember you should use a payment gateway accessible to most of your customers (such as Stripe or PayPal, for example.)

4. Create Membership Levels

Define different membership levels or tiers based on the features and access you want to provide. For example, you might have a basic, premium, and VIP membership level.

5. Set Pricing and Billing for Each Plan

Set the pricing and duration for each membership level. Specify whether the memberships are billed monthly, annually, or any other recurring time frame. Consider offering a discount for longer commitments, such as a yearly plan priced below twelve monthly payments. For more ideas, see this guide to membership pricing strategy.

6. Configure Access Restrictions

Determine which content or features are available to each membership level. Use the membership plugin’s settings to restrict access to specific pages, posts, downloads, or any other elements on your site.

7. Design Your Sign-Up Pages

Create visually appealing signup pages for each membership plan. Use your plugin’s templates, your theme or a page builder to design them, and make the differences between plans easy to compare.

8. Test the Sign-Up Process

Before launching your pricing plans, thoroughly test the signup process to ensure everything is functioning correctly. Check if members are correctly assigned to the selected membership levels and if the payment gateway integration is working smoothly.

9. Launch and Promote Your Plans

Once you are confident everything is working well, publish your pricing plans on your website and start promoting them. Use marketing tactics like email campaigns, social media outreach, or paid ads to attract potential members.

10. Monitor and Optimize

Regularly monitor your membership site’s performance and member feedback. Analyze the metrics like conversion rates, retention rates, and churn rates to optimize your pricing plans and make necessary adjustments.

Every membership site is unique, so choose a plugin and a plan structure that fit your specific requirements.

Do You Need Membership Plans?

Yes, membership pricing plans are a great option for pretty much every membership site. However, they are not mandatory. It all depends on the type of membership site you want to create, the content you put forward, and your overarching business model.

Overall, having different pricing plan options comes with plenty of advantages, some of the most important ones including:

• Making it easier for customers to find the perfect fit
• Increasing overall membership sales as users can easily move up the ladder in terms of added features
• Providing better value for money to customers through exclusive access and discounts
• Making it easier to market your site by segmenting your offer into different plans
• Creating a sense of loyalty among customers, as they will feel like part of an exclusive club

That being said, not every membership site in the world needs a plan-based pricing scheme. Some examples of sites that don’t need a membership plan include:

• News websites or blogs where users can access most of the content for free
• Educational websites that sell individual courses one at a time
• Websites with a single tier of membership

Pros and Cons of Subscription Plans

Recurring subscription plans are the most common way to price a membership, but they aren’t right for every site. Weigh both sides before you commit.

Benefits of Subscription Plans

• More predictable revenue. Recurring payments make it easier to forecast income, plan content and budget for marketing.
• Higher customer lifetime value. Members who stay for months are worth more than one-off buyers, especially when your plans include perks that give them a reason to stay.
• Better engagement. People who pay regularly have more reason to use what they pay for, and good email nurturing keeps them active.
• More chances to retain members. Ongoing billing gives you regular touchpoints, such as renewal reminders and member-only updates, to keep people subscribed.
• Better data. Subscribers give you more insight into who your members are and what they use, which helps you improve your plans over time.

Drawbacks of Subscription Plans

• Lower conversion rates. Some visitors hesitate to commit to an ongoing payment, so you may need to work harder to turn visitors into subscribers.
• Churn. Subscribers can cancel at any time, so you need to keep delivering value. This guide on how to boost member retention covers practical ways to reduce cancellations.
• More customer support. Subscribers expect ongoing service, and billing questions, failed payments and plan changes all need answers.
• Fewer upsell options. Beyond moving members to a higher tier, it can be harder to sell extras to people who already pay every month.
• More competition. As more businesses adopt subscriptions, customers become more selective about which ones they keep.

Membership Sites That Work Well with Subscription Plans

Subscription plans fit best when members get ongoing value. These types of membership sites often do well with a recurring model:

• Course libraries and educational programs, where new lessons or courses are added over time
• Business coaching and consulting, where members get continued guidance
• Fitness and wellness programs, where people want ongoing support to reach and maintain their goals
• Creative communities for writers, designers or musicians who want resources and feedback as they grow
• Career growth communities that offer job resources, networking and skills training
• Personal development and coaching services that guide members toward long-term goals
• Online communities and forums, where the value comes from the people and conversations

Subscriptions are a weaker fit for one-off offers, such as a single course without a community, or a digital product people buy once and use without ongoing support. For these, a one-time payment for lifetime or fixed-period access is often the better choice, and you can still add a paid tier later.

Ultimate Membership Pro supports both approaches. You can sell each Membership as a recurring subscription, in installments, or as a one-time payment for lifetime access, a fixed period or a set date range. See all billing options for Memberships.

Types of Membership Plans

There are various types of pricing tiers for membership sites. The following options are quite common:

Basic vs. Premium

This type of plan structure comes with two levels of access and benefits: a basic one and a more premium one. The basic one can include:

• Limited access to features and content
• Basic customer support
• Just the entry levels in a course
• Access to fewer meetings/ courses on any given timespan

The Premium pricing levels will usually provide more content (or more in-depth pieces) and access to exclusive features, more time with the trainer, more course materials, or advanced, 24/7 customer support.

Gold/Silver/Bronze Tiers

The Gold/Silver/Bronze tiered membership plan approach is better when you want to diversify your offers and reward your members for their loyalty. It’s typically used when you have different levels of access to content, features, and services.

Usually, the Gold tier is the most expensive and includes a higher number of features while at the same time offering discounts or exclusive content. The Silver tier includes fewer features but is still competitively priced, and the Bronze tier is usually the lowest-priced plan with fewer perks.

Free Trial or Freemium Plan

A time-limited free trial tier can attract potential members to explore your site’s offerings before committing to spending money. This type of approach is best when you want to build an audience, gather their reviews and feedback, and encourage them to recommend your membership site to others.

Once you have earned your members’ loyalty and trust, you can monetize your website by adding a new, paid tier — or by selling products, such as:

• Digital products (eBooks, videos, apps)
• Branded physical products (t-shirts, mugs, accessories)
• Accessories related to your specific membership site niche

Lifetime Access vs. Limited-Time Plan

The lifetime access plan is perfect for those who want to provide their members unlimited access to all of the content and features on their website. This is typically done with a one-time payment.

On the other hand, the limited-time pricing tier provides users access to all of the content and features on your website for a specific time. After that, they will need to renew their plans or switch to an alternate one if they want to continue using the site.

This type of pricing level is ideal for those who want to provide different levels of access and reward loyal customers with discounts or exclusive access.

How to Structure Your Membership Plans

When structuring your membership site pricing plan options, consider the following elements:

Define Access Type

Decide on the type of access you want to provide for each plan – lifetime, limited duration, date range, or recurring periods.

Think of Benefits and Features

Make sure to include features and benefits that cater to the different needs of your members. These can include discounts, exclusive content, early access to new material, community access, live sessions or one-on-one support. Tie each benefit to a specific plan, so members can see at a glance what they gain by upgrading.

Billing Options

Determine whether each plan will be accessible for free (as a trial) or as a paid option. For paid plans, set the level price, billing recurrences, and trial periods if applicable. Remember to make recurring billing easy for customers, but also to enable them to cancel at any time (as this will build trust with them and help you retain members over time).

Set Payment Platforms

Choose which payment platforms you want to provide for each plan, such as PayPal or Stripe. As a general rule, you want to use a payment platform that makes it easy for members to make recurring subscription payments regardless of their chosen plan.

Create Different Levels

Provide multiple access levels to cater to diverse member needs, ranging from basic to premium. Try to keep things as simple as possible here — too many membership tiers can be confusing and may steer potential buyers away from signing up.

Unique Plan Names

Assign unique and easily recognizable membership plan names to each tier for clarity and branding purposes. Keep in mind that if you want your level names to be creative, they should still remain clear and concise.

Plan Names: A Quick Guide

Your membership levels names can make a world of difference in terms of how your potential customers perceive you. Here are some basic best practices to keep in mind when choosing a level name for your membership site:

Keep It Simple

Use clear and straightforward names that convey the plan’s benefits concisely. Remember, people are busy and it’s unlikely they’ll want to take the time to try and understand complicated plan names.

Use Alliterations

Consistent lettering in plan names makes them easier for customers to remember, and also adds a touch of creativity to them.

Position Your Plans

Choose level names that highlight how they are different from each other and why customers should pick one over the others.

Reflect Benefits

Ensure the plan names reflect the benefits members will get, such as the result or experience each plan delivers, rather than listing the specific features each plan includes.

Align with Branding

Align the plan names with your site’s overall branding and messaging. For instance, depending on what you sell and what type of industry you’re an expert in, you could use humor, industry terms, or even puns to name your plans.

How to Add Membership Plans on a WordPress Membership Site

Here is how the process above looks in practice when you add membership plans to a WordPress site with Ultimate Membership Pro, where each plan is set up as a Membership:

Step 1: Get and Install Ultimate Membership Pro

Ultimate Membership Pro is sold as annual plans (Pro, Full Package and Agency). Every plan includes the core plugin and its add-ons, while Full Package and Agency also include the Pro Add-ons. Install it like any other WordPress plugin.

Step 2: Create Your Memberships

• Access: choose lifetime access, a fixed period, a set date range or recurring billing every few days, weeks, months or years. You can also split a price into installments.
• Billing: decide whether the Membership is free or paid, set the price and add a free or paid trial if needed.
• Display: show your Memberships on a pricing page using a ready-made template, or build your own pricing table.

Step 3: Set Up Registration and Login

• Set up login options, registration forms, and other membership-related features.

Step 4: Restrict Content by Membership

• Define what content and features each membership level can access.

Step 5: Connect Your Payment Gateways

• Connect Stripe, PayPal or another of the ten payment gateways included in every plan to take one-time and recurring payments.

Conclusion

A well-crafted membership pricing plan structure is a crucial element in running a successful membership site. You can attract and retain members effectively by defining clear membership levels, providing diverse pricing tier options, and providing an intuitive user experience.

Remember to keep your level names aligned with your brand and to periodically review and optimize your plans based on member feedback and changing needs. With a thoughtful approach, your pricing structure will contribute significantly to the growth and success of your membership site.

Frequently asked questions

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