What Is a Recurring Subscription and Should You Get One for Your Membership Site?

A recurring subscription charges members automatically at set intervals, such as monthly or yearly, for as long as they keep their access. For most membership sites that publish new content or run a community, it is the better model, because it turns members into predictable revenue; one-time payments suit courses or downloads that don’t change.

In recent years, subscription-based business models have grown in popularity — and it’s easy to see why. Businesses based on the recurring subscription model give customers the flexibility they need, and business owners some sort of predictability as to how much revenue they’ll bring in next month. From streaming services to online learning platforms, businesses across various industries leverage recurring subscriptions to build sustainable revenue streams.

If you’re considering creating a membership site, it’s essential to understand the concept of recurring subscriptions and evaluate whether it’s the right choice for your venture. This article explains what a recurring subscription is, covers the advantages and disadvantages for membership sites, and shows how to implement one effectively.

What Is a Recurring Subscription?

A recurring subscription is an arrangement in which a customer is charged automatically at regular intervals (weekly, monthly, yearly or any other period) for continued access to a product, service or content. The payments repeat until the customer cancels or the subscription reaches a set number of payments.

On a membership site, the subscription is what members buy and the recurring payment is how they pay for it: each successful charge keeps their access active for another billing period. The software that runs those charges is often called recurring billing software.

Recurring Subscription vs One-Time Payment

	Recurring subscription	One-time payment
How members pay	Charged automatically every billing period	Charged once
Access	Lasts as long as the member keeps paying	Lifetime or a fixed period
Revenue	Builds month after month and is easier to forecast	Arrives up front; growth depends on new sales
Best for	Ongoing content, communities, coaching	Self-paced courses, downloads, event access

Many membership sites combine both, for example a monthly subscription for the community plus a one-time fee for a standalone course.

Advantages of Recurring Subscriptions for Membership Sites

Recurring subscriptions come with a long list of benefits — including for (but not limited to) membership sites. Some of the most important advantages include the following:

Predictable Revenue Stream

Recurring subscriptions offer a stable and predictable revenue stream for membership sites. Unlike one-time payments or individual purchases, which can vary in frequency and amount, recurring subscriptions provide a consistent income flow. This financial stability allows you to plan and scale your business more effectively.

Increased Customer Lifetime Value (CLV)

Membership site owners can significantly enhance customer lifetime value by implementing recurring subscriptions. Customers who commit to a recurring payment plan are more likely to engage with your site over an extended period. This increased engagement fosters customer loyalty and opens avenues for upselling and cross-selling opportunities, driving additional revenue.

Improved Customer Retention

Recurring subscriptions create a sense of commitment and exclusivity among your members. You can enhance customer satisfaction and increase retention by continuously delivering value through your membership site. Regularly updated content, exclusive benefits, and a thriving community can all contribute to building a loyal subscriber base.

Flexibility in Pricing Models

Recurring subscriptions offer flexibility in structuring your pricing models. You can choose from various options, such as monthly, quarterly, or annual subscriptions, allowing you to cater to different customer preferences and financial capabilities. Additionally, you can experiment with tiered pricing, offering different access levels and benefits to accommodate diverse customer needs.

Disadvantages of Recurring Subscriptions for Membership Sites

Nothing is ever perfect — and recurring subscriptions are no exception. Some of the less beneficial (but not insurmountable) aspects of recurring subscriptions for membership sites include the following:

Perceived Lack of Value

If your membership site fails to deliver valuable content and experiences consistently, subscribers may question the worth of their recurring payments. Maintaining high-quality standards and continually providing fresh and relevant content is crucial to ensure subscribers perceive ongoing value in their subscriptions.

Solution: It’s important to remember a perceived lack of value is just that: perceived. If you deliver quality content and experiences to your members, they will recognize the value of their subscriptions.

Potential Member Fatigue

Over time, some members may experience subscription fatigue due to the increasing number of subscription-based services available. If your site does not differentiate itself or fails to engage and retain members continually, they may decide to cancel their subscription.

Solution: If you want to overcome member fatigue, it’s important to keep assessing and enhancing your offerings. Regularly update content, deliver exclusive benefits, and foster a thriving community to keep customers engaged. Additionally, experiment with flexible pricing models such as monthly, quarterly, or annual subscriptions to meet different customer needs.

Payment Processing and Churn

Managing recurring payments and minimizing churn can present challenges. Dealing with payment gateways, failed transactions, and canceled subscriptions requires careful monitoring and efficient processes. It’s essential to have reliable payment systems and actively analyze churn metrics to promptly address any issues.

Solution: Choose a payment processor with solid recurring billing, and make sure members can update their card before a renewal fails. To compare the two most common options, see this Stripe vs PayPal comparison for membership sites.

How to Implement Recurring Subscriptions for Your Membership Site

Implementing a recurring billing subscription for your membership site can feel a bit confusing, but it doesn’t have to be. Understanding the process, potential pitfalls, and how to address them effectively is essential.

Here’s a high-level, step-by-step process on how to implement recurring payments for your membership site:

Choose a Subscription Management Platform

Selecting a robust subscription management platform is crucial for effectively implementing recurring subscriptions. Consider platforms offering automated billing, flexible pricing options, and seamless integration with your website. You’ll usually need two pieces: software that manages the subscriptions and member access, and a payment gateway that charges the card.

On WordPress, a membership plugin like Ultimate Membership Pro handles the subscription side: you create a Membership, set it to bill every few days, weeks, months or years (or for a set number of payments), and add a free or discounted trial if you want one. Payments run through gateways such as Stripe and PayPal, which charge members automatically every period.

Define Membership Tiers and Benefits

Determine the different membership tiers you want to offer, each with its unique set of benefits. This tiered approach allows you to cater to varying customer preferences and budgets. Consider offering exclusive content, early access to resources, community forums, or personalized support as part of the membership benefits.

Some tips and best practices for successful membership tiers and benefits include:

Reflect Benefits and Differentiation

Your membership level names should clearly communicate the benefits and unique features associated with each tier. Consider using descriptive terms that convey the exclusive content, resources, or perks members will receive. For example, instead of simply labeling a tier as “Basic,” you could name it “Essential Access” or “Starter Pack,” highlighting the core benefits of the tier.

Align with Target Audience

Tailor your membership level names to resonate with your target audience. Understand their needs, aspirations, and preferences, and use language that speaks directly to them. For instance, if your membership site caters to fitness enthusiasts, you could name your tiers as “Fit Beginner,” “Active Achiever,” and “Elite Athlete” to evoke a sense of progression and accomplishment.

Create an Aspirational Aura

Consider using aspirational or captivating terms to make your membership levels more enticing. Words like “Premium,” “Exclusive,” “VIP,” or “Elite” evoke a sense of status and exclusivity. Pair these terms with relevant descriptors to communicate the value and special privileges associated with each tier.

Keep it Simple and Intuitive

Avoid using overly complex or confusing membership level names. Keep them concise, easy to understand, and intuitive. Ensure that members can quickly grasp the differences between tiers based on their names alone. If possible, use a numbering system (e.g., Level 1, Level 2) or descriptive terms (e.g., Basic, Standard, Pro) for straightforward comprehension.

Test and Refine

Consider testing different membership level names with a small group of target users to gather feedback. Pay attention to their perceptions, preferences, and comprehension of the tier names. Refine and iterate based on this feedback to optimize the impact and appeal of your membership levels.

Develop Engaging Content and Experiences

Continuously create high-quality and valuable content to keep your subscribers engaged. Regularly update your site with fresh articles, videos, tutorials, webinars, or other forms of media that align with your target audience’s interests and goals. Consider conducting surveys or engaging with your members to understand their preferences and tailor your content accordingly. Encourage interaction and foster a sense of community by providing forums or discussion boards where members can connect with each other and share insights.

Communicate the Value Proposition

Clearly articulate the unique value proposition of your membership site to potential subscribers. Highlight the exclusive benefits, access to premium content, and the ongoing value they will receive by joining. Use persuasive copywriting techniques and compelling visuals to effectively convey the benefits and encourage conversions.

Offer Flexible Pricing Options

Provide a range of pricing options to accommodate different budgets and preferences. Consider offering discounted annual subscriptions for those willing to commit long-term or trial periods for new members. Experiment with promotional offers, referral programs, or bundled packages to attract and retain subscribers.

Streamline Payment Processes

Ensure a smooth and hassle-free payment experience for your subscribers. Optimize your payment process by integrating secure and reliable payment gateways. Test the payment flow to identify and resolve any issues that may deter subscribers from completing their transactions. To maintain trust, be clear about billing cycles, cancellation policies, and renewal reminders. Letting members renew or cancel from their own member portal also saves them from emailing you for routine changes.

Monitor and Optimize Churn Rates

Regularly monitor churn rates and identify factors contributing to member cancellations. Analyze patterns, feedback, and engagement metrics to identify areas for improvement. Implement strategies to reduce churn, such as personalized re-engagement campaigns, targeted offers, or improved customer support. Continually assess and refine your membership site based on subscriber feedback and changing market dynamics.

Conclusion

Recurring subscriptions offer a host of advantages for building a successful membership site. They provide a stable revenue stream, increase customer lifetime value, and foster customer loyalty.

However, addressing potential challenges, such as maintaining perceived value, combatting subscription fatigue, and managing payment processing and churn is crucial. Develop strategies for effectively managing recurring subscriptions, and you will have a strong foundation to build a successful membership site. If you run your site on WordPress, you can compare the annual plans of Ultimate Membership Pro on the pricing page.

Frequently asked questions

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