Business Idea

Start A Membership Management Software

About

Starting a membership management software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell membership management software, or selling membership management software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a membership management software ➜

Key stats

market size
$4.39B
revenue (monthly)
$40K
starting costs
$37.2K
gross margin
90%
avg product price
$1250
time to build
9 months
growth
SEO
business model
Advertising
time investment
Full time
work from home?
Yes

About

Starting a membership management software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell membership management software, or selling membership management software online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a membership management software ➜

Key stats

market size
$4.39B
revenue (monthly)
$40K
starting costs
$37.2K
gross margin
90%
avg product price
$1250

 

time to build
9 months
growth
SEO
business model
Advertising
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
App Creation Costs $1,000 $20,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $1,900
Other Expenses $0 $800
Total Startup Costs $8,529 $65,961

Successful Businesses

Business URL Rank
MemberSpace memberspace.com #49,184
AuthPro authpro.com #75,838
Breeze Church Management Software breezechms.com #78,409
Boutique Fitness and Gym Management Software glofox.com #96,397
Hivebrite hivebrite.com #111,147
Technology Services Industry Association tsia.com #112,408
Tendenci tendenci.com #132,825
Online Registration & Membership Management Software amilia.com #139,806
CSA Software csaware.com #205,177
YourMembership by Community Brands yourmembership.com #211,049
SilkStart silkstart.com #217,803

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a membership management software can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A membership management software gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a membership management software. This could be the start of an incredible business opportunity!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
High employee turnover In the membership management software, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a membership management software, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.