+39 Membership Site Statistics and Trends You Should Know for 2024 and Beyond (New)
Membership website that opts for subscription model offers increase recurring revenue and better stability for 63.5% of site owners. As we are moving into subscription economy, gaining new insight into the subscription business can help you create a profitable membership business.
Regardless, if you are a educator, coach, course creator, or an edupreneur these membership site stats can help you in your journey of growing your business.
Top Membership Site Statistics and Trends For 2024 and Beyond
- 60% of visitors leave after visiting only one page, and 2% conversion rate is the average conversion rate from a visitor to a member of a membership site.
- 63.5% membership sites earn less than $500 from the lifetime value (LTV) of a customer, 17.1% of membership site earn more than $1,000 from the lifetime value of a customer with the average subscribed member spending $846.81 over the time it subscribe on the membership.
- Average overall churn rate for subscription service in is 5.57% and 43.86% of membership sites have a churn rate of less than 5%.
- 1 in 8 subscribers (12.5%) stay subscribed for more than two years and 1 in 2 subscribers (50.9%) stay subscribed for more than a year.
- Customer experience quality, competence in new technologies, advanced understanding of regulation are the 3 top skills to build a successful subscription based business.
PS. I’ve verified the source on the different research and studies by reputable institutions and organizations and have spend countless of hours to compiled this massive list of membership site statistics. Sticking to our editorial guidelines, we’ve listed down the data which is the most accurate, reliable and up-to-date, while linked each statistics with the source where it is found. So feel free to refer to the data and insights we have for this emerging trend on the importance of opting for subscription based model for your business.
Membership Website Growth Trends and Statistics
- In 2022, 53% of all software revenue are generated from subscription models. (Source: IDC)
- Subscription ecommerce grew 65% last year. (Source: PRNewsWire)
- Size of the subscription market worldwide is projected to reach $904.28 billion in 2026. (Source: Forbes)
- There are over 7,000 membership sites in 2019 and the number are growing every year. (Source: Exploding Topics)
- Today, there are over 2,000 membership sites in the United States alone. (Source: Exploding Topics)
- The membership management software market is also expected to reach $8.26 billion by 2029. (Source: MaximizeMarketResearch)
- $15,500 was spend every month on SaaS for the average online business. (Blissfully)
- Online business subscribes to an average of 20+ paid SaaS subscriptions. (Source: Blissfully)
Membership Site LMS Statistics
- Today, there are over 700 Learning Management System (LMS) to choose from today. (Source: Finance Online)
- 41.7% of all Fortune 500 companies use educational technology such as LMS to conduct training to employees. (eLearning Industry)
- 93% of businesses choose to use LMS for their business as they want to include live online learning to their company’s training programs. (Finances Online)
- Membership LMS platforms is most commonly used in the Education industry (21%), followed by Technology (12%), Manufacturing (9%), and Governmental Bodies (2%). (iSpring Solutions)
Membership Site Conversion Rate and Lifetime Value
- 2% conversion rate for membership site are consider average when converting your audience into members of your site. (Source: asaecenter)
- 60% of visitors leave after viewing only one page of your membership site. (Source: asaecenter)
- Lifetime value (LTV) of a member on a membership site is $846.81 on average. (Source: MG)
- Lifetime value (LTV) of a member on an established average membership site is $1006.10 which is 18.81% more than the benchmark of the LTV of a membership customer. (Source: MG)
| Lifetime Value (LTV) Range | Percentage of Overall Business |
|---|---|
| $0 to $250 | 38.5% |
| $250 to $500 | 25% |
| $500 to $750 | 14.6% |
| $750 to $1000 | 7.3% |
| $1000 to $1500 | 6.3% |
| $1500 to $3000 | 7.3% |
| $3000 to $5000 | 1% |
| More than $5000 | 3.1% |
- More than 3 in 5 membership sites (63.5%) earn less than $500 from the lifetime value (LTV) of a customer.
- 1 in 5 membership sites (21.9%) earn $500 to $1,000 from the lifetime value (LTV) of a customer.
- Less than 1 in 5 membership site (17.7%) earn more than $1,000 from the lifetime value of a customer.
- 63.5% of memberships site owners increases their income increased in the past 12 months.
Membership Site Retention and Churn Rate Statistics
- According to the recent studies, the average overall churn rate for subscription service in 2023 is 5.57%.
- B2C subscription service average churn rate for 2023 is 6.77% which is relatively higher than B2C subscription service by 1.86%.
- B2B subscription service average churn rate for 2023 is 4.91% which is 0.66% lower than the average churn rate.
- 43.86% of membership sites have a churn rate of below 5%. (Source: TMG)
- Industry with the highest churn rate are Consumer Goods (7.55%), Education (7.22%), Business Service (6.59%), Entertainment (6.42%) and Healthcare (6.03%).
- Software have the lowest churn rate of 4.75% which is lower than the average churn rate of 5.57%.
- The most common reason for members to cancel their membership is the cost. (Source: MemberPress)
- Membership that cost more than $250 and of the price range between $10-$25 have the highest churn rate that are above the average churn rate of 5.57%.
- Subscription service that are less than $10 and price range between $50 to $100 have the lowest churn rate of less than 4%.
Membership Engagement Statistics
- 76% of business thinks that a subscription-based model have created a long-term relationships with customers that makes members more likely to engage. (Source: CitiBank)
- The most successful membership sites offer a mix of content types, including video, audio, and written content. (Source: MemberPress)
- 40% of membership site members says there is an improvement in member engagement over the past 3 years. (Source: GrowthZone)
Membership Site Strategies Statistics
- Two-third of companies (68%) have strategies for subscription revenue models. (Source CitiBank)
- One-third of companies (30%) are on product-based revenue model and do not have the capability to support subscription-based model. (Source CitiBank)
- 66% of business executive thinks subscription-based revenue model can help business come a lead disruptor in the industry. (Source CitiBank)
- 49% of business surveyed using subscription-based revenue model is an opportunity to capture more new markets in the industry. (Source CitiBank)
- 55% of business professionals agree moving on to subscription-based revenue model can have a much higher long-term revenue growth potential. (Source CitiBank)
- 70% of online business are looking to use subscription models to grow their business. (Source: Global Banking and Finance)
- 1 in 8 subscribers (12.5%) stay subscribed for more than two years. (Source: MG)
- 1 in 2 subscribers (50.9%) stay subscribed for more than a year. (Source: MG)
- Approx. 7 in 8 subscribers (13.51%) stay subscribed for more than 3 months. (Source: MG)
| Subscription Duration | Percentage |
|---|---|
| More than 36 months | 2.1% |
| More than 24 months | 12.5% |
| More than 18 months | 21.9% |
| More than 1 year (12 months) | 50.09% |
| Less than 1 year | 49.91% |
| Less than 9 months | 35.41% |
| Less than 6 months | 13.51% |
| Less than 3 months | 1% |
Membership Subscription Refund Statistics
- 2 in 5 paid membership sites (42.90%) do not offer a refund policy for their paid subscription members.
- 1.50% offer 60-days refund policy for their paid subscribers.
- 1 in 4 of membership site (27%) offers 30 days cash back guarantee for their paid subscribers.
- 1 in 10 (10%) subscription business site offers 7-day (1 week) refund for their paid subscribers.
- 54.13% of those who have an “No Refund Policy” still offer a refund when asked, meaning 4 in 5 (80.32%) paid membership site offers refund when asked.
- 74.50% of membership site collect feedbacks from members that cancel. (Source: MG)
- Only 30.50% of membership site does a follow-up campaign to “win back” members who have cancelled their subscription, 15% of the members subscribe to the membership after the follow-up campaigns. (Source: MG)
Top Skills For Subscription Based Model Business
A study was conducted by Citi to identify the most important skills required to build a successful subscription based model business and the top 5 skills voted as the most important are:
- Customer experience quality
- Competence in using new financial tools and technologies
- Advanced understanding of regulation and compliance
- Entrepreneurial mindset and lateral thinking
- Data engineering and data warehousing.
Here is the breakdown on the survey conducted:
| Top Skills for Subscription Success | Voted by Percentage |
|---|---|
| Customer Experience Quality | 36% |
| Competence in Financial Tools & Technologies | 29% |
| Advanced Understanding of Regulation & Compliance | 29% |
| Entrepreneurial Mindset & Lateral Thinking | 29% |
| Data Engineering & Data Warehousing | 27% |
Most Popular Membership Site Topics
Today there are many membership site, and some topics are more popular than others:
- The most popular membership site topic is online education which consist of up to 25% of all membership sites.
- The top 3 membership site topics are; online education, fitness and wellness, business and entrepreneurship.
And if you are wondering what is the breakdown on the current most popular membership site topics, here is the list.
| Membership Site Topics | Estimated Percentage Range |
|---|---|
| Online Education | 20-25% |
| Fitness and Wellness | 15-20% |
| Business and Entrepreneurship | 10-15% |
| Personal Development | 10-15% |
| Cooking and Recipes | 5-10% |
| Arts and Crafts | 5-10% |
| Parenting and Family | 5-10% |
| Health and Nutrition | 5-10% |
| Travel and Adventure | 3-7% |
| Financial Management | 3-7% |
| Hobbies and Special Interests | 3-7% |
| Relationship and Dating | 2-5% |
| Music and Instrument Tutorials | 2-5% |
| Language Learning | 2-5% |
| Real Estate and Property Investing | 2-5% |
What Are the Key Metrics You Should Use to Track The Performance of Your Membership Site?
The key metrics to track for a membership site include the following:
- Sales Acquisition: New member sign-ups, churn rate (the rate at which members cancel their subscriptions),
- Performance: Member engagement levels, average revenue per member, and conversion rates.
By monitoring these metrics, you can identify areas for improvement, track your site’s growth, and make data-driven decisions to optimize your membership site.
What Are the Different Ways to Create a Membership Site?
Knowing how to choose the Best Membership Site Platforms for your business is key to success. There are three ways to create a membership site.
- Using a plugin that integrates with your current established WordPress platform.
- Using an all-in-one membership site platform that includes all the tools and features you’ll need to create your membership community.
- Using an all-in-one membership App builder to build your App based membership site.
Best Membership Site Platforms
There are a few great membership site platforms that you can create and market your membership site to a wide audience.
- Membership site plugins: Memberspace
- All-in-one membership site platform: ThinkiFic, Podia, LearnWorlds
- Membership App: Passion.io and Mighty Networks
How Can I Create a Successful Membership Site?
Creating a successful membership site requires the following:
- Careful planning on how you want to create and promote your membership site.
- Understanding your target audience who might be interested.
- Offering valuable content or services that your audience wants.
- Ensuring a seamless user experience by choosing the right membership site platforms to get started.
- Consistently engage with your members by providing high-quality content.
- Apply effective marketing strategies to attract new members.
- Monetize your membership site effectively to increate your member’s LTV.
Putting all together, you get to create a pretty good membership site for your business.
Frequently Asked Questions (FAQs) Related to Membership Sites
- 7 Best Teachable Alternative for Course Creators (Free and Paid)
- LearnWorlds Features: In-Depth eLearning LMS Overview
- ThinkiFic Features: Course Creator’s In-Depth Overview
- +59 Best Proven Membership Site Ideas to Get Started This Year (Read First)
- Passion.io Review 2024: Still The Best App For Coaches & Creators? (Limited Time Lifetime Deal)
Join 900+ BUDDIES who are growing their wealth with our weekly Income Newsletter
Antony C. is a dividend investor with over 15+ years of investing experience. He’s also the book author of “Start Small, Dream Big“, certified PMP® holder and founder of IncomeBuddies.com (IB). At IB, he share his personal journey and expertise on growing passive income through dividend investing and building online business. Antony has been featured in global news outlet including Yahoo Finance, Nasdaq and Non Fiction Author Association (NFAA).
