Why this is the perfect time to start charging for website subscriptions
Why this is the perfect time to start charging for websitesubscriptionsby Peter A. SchaibleIf you're a writer, researcher, subject matter expert,enthusiastic hobbyist, or an authority on almost any topic,there has never been a better time to start your ownsubscription website or online newsletter. And if you're already publishing a hobby website, now is theideal time to convert at least a portion of the content tofee-paid access.Smart website owners are now realizing just how...
... valuable theirhard-earned knowledge is to others. Much of the information thatused to be available for free to anyone and everyone on theWorld Wide Web is moving behind closed doors, accessible only topaying subscribers. Savvy writers and publishers are not giving it away anymore.They're setting up profit-driven, members-only websites andbuilding online communities of subscribers who value theirknowledge. Perhaps surprisingly, resistance to paying forcontent is gradually melting away.The end of free This trend away from websites offering free information andtoward a subscription, or pay-for-access business model, hasseveral causes. First, only a few websites operated by big companies can affordto provide valuable content without being compensated. Some ofthem can do it for the public relations value, but they are theexception. The rest of us can't be so generous. And trying to recapture ourexpenses by selling advertising on our websites has failed topay the bills. Online advertising and click-through rates are onthe decline.Second, many people are now more than willing to pay to learnwhat you already know, as thousands of online publishers ofsubscription websites have already proven.Why subscribers are ready to payThe Internet has enabled people with similar interests to findeach other and form online communities. Whether your interest isin politics, gardening, or model railroading, the Internetenables you to connect to others who share your enthusiasms andvalues. But in the current political and social climate, there isheightened anxiety and concern about privacy. If you previouslycontributed to public online discussion forums, you may now befeeling vulnerable. You never know who is lurking and readingyour comments, or gathering information about you. One frequentconcern: what spammers are harvesting your e-mail address?However, in the seclusion of a subscribers-only website, youfeel more protected. You can share ideas with an affinity groupof like-minded people with less fear of ridicule orrepercussions. The publisher moderates the forum and promises tohonor your privacy.These concerns are not diminishing over time, they areintensifying as people perceive the world -- and cyberspace --as an increasingly dangerous place. The result has been aproliferation of private, members-only, subscription websitesand online newsletters covering literally hundreds of diverseand specialized topics.Finding the right subscription business modelComing up with the right topic for a successful subscriptionwebsite is usually the biggest stumbling block for those wantingto get into this business. Choosing your site topic is a seriousissue, as the topic you select pretty much dictates your chancesof success with a subscription website.Research by the Subscription Website Publishers Association(http://www.SWEPA.com) shows at least five successful models forsubscription website topic selection. These include existingprint newsletter topics; trade and professional associations;career advancement, personality based or insider tips; anddownloadable product libraries. For details go tohttp://www.swepa.com/public/136.cfm. As the Internet changes, it is creating moneymakingopportunities for people who like to write, teach and otherwiseshare their expertise. Your years of study, hands-on experience,and tried and true wisdom could be worth a hefty income whenturned into an online community. Online communities bring together people who are interested in acommon topic. They create value by providing insiders' secretsthat the group is eager to learn about. And best of all, themembers are willing to pay money to join. Why having a subscription website on the Internet is so great As the publisher of a subscription website, you have an almostunfair advantage over other print publications that don'toperate on the Internet. Consider the benefits:* Low cost of entry -- a computer, minimal software and Internetaccess are all you need. * No or low rent -- work from home. *Low overhead -- production and distribution costs are close tozero. * No employees -- do it all yourself. * Operate fromanywhere in the world. * Access a worldwide audience. * Reach awell educated, affluent market. * Offer a visually rich website,with text, images, audio or video. * Sell and deliver digitalinformation products instantly. * Build loyal communitiesthrough discussion groups, online events.The next phase in the subscription website evolutionInformation is increasing in value. Over the next several years,the trend to information provided on the Internet by paidsubscription will continue.A two-tier model for the dissemination of quality content isemerging. Successful online publishers provide samples of theirwares for free, either on the public portion of their website,or through a free, opt-in e-mail newsletter. But to get down to the most valuable data -- the premium contentof secrets and the insider's tips and techniques -- subscribersare learning that they have to pay. Information seekers aregetting accustomed to the change, just as they have learned topay for premium content on cable and satellite television.The most successful online publishers will be those who canstrike the perfect balance between free and fee. The time to getstarted with your own subscription website is now.Peter A. Schaible is executive director of the SubscriptionWebsite Publishers Association (http://www.SWEPA.com). SWEPA exists to support online publishing by providingeducation, training and industry recognition. Our goal is tohelp members build successful, profitable subscription websites.Copyright 2003 Subscription Website Publishers Association.Permission to reprint is granted provided the references andhypertext links to SWEPA are included.
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