How Much Does it Cost to Start a Membership Site in 2024? A Detailed Breakdown

Starting a membership site is one of the most powerful ways to create a sustainable and predictable business model online. But how much does it actually cost to get a membership site up and running in 2024?

In this comprehensive guide, we‘ll explore the real costs involved so you can make informed financial decisions as you grow your membership community.

After 15 years as a webmaster and membership site owner, I have seen businesses started successfully on modest budgets as low as $300 per year. I have also consulted for large membership programs that invested over $100,000 in launch costs.

The needs of every membership business are different. By understanding the cost components, you can identify unnecessary expenses and keep your spending lean in the early phases when it matters most.

Let‘s dig in and break it down!

Main Cost Areas for Membership Websites

There are five primary areas where you‘ll likely be spending money to start your membership site:

1. Membership management platform
2. Payment processing fees
3. Website hosting, domain, and SSL
4. Website design, customization and branding
5. Marketing integrations and tools

Additional operational costs may include email marketing, community features, live chat, and more. But the above five are the core elements of any membership site.

Now let‘s explore popular options in each area and their price points.

Membership Management Platforms

The foundation of any membership site is the platform or software you use to handle:

• Member registrations
• Access control
• Subscriptions and payments
• Delivery of member benefits

You need a system that can reliably do all of this heavy lifting for you.

WordPress with MemberPress

The most popular option among small and mid-sized membership sites is MemberPress, a WordPress plugin made specifically for managing memberships.

With MemberPress, you can turn any WordPress site into a full-featured membership platform with no limits on members or extra transaction fees.

Members	100 members	500 members	1500 members
Platform fee	MemberPress Basic $179 per year	MemberPress Plus $299 per year	MemberPress Pro $499 per year

Benefits of MemberPress:

• No transaction fees beyond payment processing
• Easy WordPress integration
• One-time license fee vs monthly bill
• Full control and flexibility
• Scales easily to any size

The annual license pricing above covers all your core membership needs for unlimited members and subscriptions.

All-In-One Platforms

Examples like Teachable, Thinkific, Podia, and Mighty Networks also provide ready-made membership management systems with a monthly fee:

Platform	Low Tier	Mid Tier	High Tier
Teachable	$29/mo	$59/mo	$299/mo
Podia	$39/mo	$99/mo	$299/mo
Mighty Networks	$33/mo	$83/mo	$249/mo

For a simple personal membership site, an all-in-one platform can be easier to manage initially. However, the monthly cost becomes far higher long term vs a one-time MemberPress license.

Most importantly, the all-in-one platforms charge transaction fees on top of payment processing. This takes a huge bite out of your revenue as your business scales.

Before choosing an all-in-one platform, be sure to closely compare:

• Payment transaction fees
• Limitations or caps on membership levels
• Integrations and flexibility for growth

This will help avoid getting locked into an expensive platform long-term.

Recommended: WordPress + MemberPress

For most membership creators, I recommend starting with WordPress and MemberPress. This offers the most affordability, flexibility, and scalability as your business grows.

The only recurring fee is your annual MemberPress license based on your needs, which gives you unparalleled value.

Payment Processing Costs

To collect membership fees online, you need a payment gateway that can handle recurring billing on an ongoing basis.

Options like Stripe and PayPal integrate directly with all major membership platforms.

The cost comes in the form of payment processing fees charged by the provider:

• Stripe charges 2.9% + $0.30 per transaction
• PayPal charges 2.9% + $0.30 per transaction
• Additional fees ~1% for international transactions

This means if you sell a $100 membership, you‘ll pay roughly $3.20 in processing fees on the transaction.

The exact fees depend on your payment volume, average transaction size, and business location. But you can expect to pay these credit card processing fees no matter what membership platform you choose. They are the cost of doing business online.

Some strategies like annual vs monthly billing can reduce your total fees. My advice is to choose the payment option that aligns with your members‘ needs rather than optimizing solely for cost.

Website Hosting, Domain, and SSL

Your membership site needs to be hosted somewhere online – this is the physical storage space for all your website files and data.

For WordPress sites, you‘ll need managed WordPress hosting starting around $7.99 per month from providers like Bluehost, SiteGround, A2 Hosting, and others.

Shared hosting is fine for starters, but I recommend upgrading to managed WordPress hosting as soon as you are able. The few extra dollars per month is well worth it for the speed, security, and support.

You‘ll also need to register a domain name (yourwebsite.com) which typically costs ~$12 per year from providers like Namecheap.

And since you are collecting payment information, you are required to use SSL encryption on your site. Some hosts include a free SSL certificate, or you can purchase one for around $60 per year.

So budget $100 – $150 per year for hosting, domain, and SSL for a small membership site.

On all-in-one platforms like Teachable, your site hosting is included in the monthly fees so you avoid these additional expenses. But again, the monthly fees add up over time.

Membership Website Design and Branding

First impressions matter, so you want to invest in a professional look and feel for your membership site aligned with your brand.

For WordPress, options include:

Free themes – WordPress has thousands of free themes you can use. Very affordable for new sites, but design options are limited.

Premium themes – Paid themes like Divi, Astra, GeneratePress offer beautiful modern designs for ~$40 – $80 per year. More flexibility and options.

Custom design – Hire a designer to create a fully custom theme for $1500 on up. Ultimate branding, but major investment.

My recommendation is to start with a premium theme in the $50 – $100 range. It comes with quality support and design tools to customize the look affordably.

Always be sure the theme works smoothly with MemberPress or your chosen membership platform.

For all-in-one platforms, you are limited to built-in templates and custom CSS. This is manageable for simple sites, but restricting. WordPress gives you endless design possibilities.

Plugins, Tools, and Integrations

One advantage of WordPress is being able to expand capabilities using plugins – bits of code that add functionality.

Popular plugins for membership sites include:

• Form builders
• Email marketing
• Webinars
• Community forums
• Course creators
• Marketing automations

Thousands of free and paid plugins are available, so you can add any feature you need a la carte.

Most plugins have free versions with the basics, then paid versions with advanced features starting around $99 per year.

My advice is to lean on free plugins in the beginning while testing what brings most value to your members. Over time, upgrade to paid versions strategically only where needed.

All-in-one platforms have their core features built-in, but less flexibility to integrate external tools. You may end up needing multiple platforms to complement your main site.

With WordPress, you can shape your optimal tech stack in one place.

Ongoing Costs: Email, Support, Operations

Once your membership site is up and running, you may incur additional ongoing costs related to:

• Email marketing – Send broadcasts and automations to members – $15-$50 per month
• SMS messaging – Send texts to members‘ mobile devices – $10-$100 per month
• Live chat – Provide real-time member support – $15+ per month
• Virtual community – Forums, social networks, etc. – $20-$150 per month
• Paying team members – Outsource tasks to a VA, coordinator, etc. – $500-$3000 per month

Evaluate these operational costs carefully, only adding what brings value to members and supports growth. Many entrepreneurs can operate sites themselves initially without expensive software or outsourcing.

As revenue comes in, you can choose where to invest in capabilities that make the biggest impact. But don‘t inflate your overhead unnecessarily in the early days.

Estimated Membership Site Launch Costs

Now let‘s put it all together. Here are realistic launch budgets for membership sites at different scales:

Members	100 members	500 members	1500 members
Platform fee	MemberPress Basic $179 per year	MemberPress Plus $299 per year	MemberPress Pro $499 per year
Hosting	Basic shared $100 per year	Upgraded shared $240 per year	Managed WordPress hosting $420 per year
Theme	Premium theme $59 year	Premium theme $79 year	Custom theme $1500 one-time
Plugins	Free	1-2 paid around $200 per year	5 paid around $500 per year
Email service	Mailchimp Essentials $15 per month	ConvertKit Pro $49 per month	Active Campaign Pro $149 per month
Total Costs	$404/year + email service	$768/year + email service	$2068/year + email service

*Processing fees not included since they vary based on revenue.

As you can see, you can get started for under $500 per year if you keep your technology stack lean. Invest back into the business as your revenue grows.

There is no need for expensive over-building early on. Starting lean is smart.

Tips to Keep Membership Costs Down

Here are a few best practices I recommend to keep your membership site budget under control:

Choose MemberPress and WordPress

The flexibility of MemberPress allows you to only pay for what you need. Plus no hidden transaction fees or forced add-ons.

Use free themes and plugins

Leverage free tools while testing your membership model. Upgrade selectively over time.

Get web hosting discounts

Sign up for 2-3 years upfront with hosts like Bluehost to lower your monthly rate.

Don‘t overbuild too fast

Prioritize core member value first. Only add extra tools when the need is clear.

Outsource selectively

Consider doing the initial work yourself before delegating to assistants to manage costs.

Avoid paid traffic

Lean on organic reach and word-of-mouth. Paid ads are tricky for memberships.

Use affiliate partnerships

Find relevant sites to promote your membership and split revenue. You both benefit.

Key Takeaways on Membership Costs

• Realistic launch budgets can start under $500 per year for starter membership sites.

• WordPress with MemberPress offers the most affordability and flexibility long-term.

• Payment processing fees apply no matter what platform you choose.

• Free plugins and themes help keep early costs down.

• Upgrade selectively over time to support growth and revenue.

• Keep operations lean until core member experience is proven.

I hope this transparent look at the costs involved with starting a membership site is helpful. If you have any other questions, feel free to reach out!

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