Membership Sites vs Subscriptions: What’s the Difference?

If you’re trying to escape the grind of client work or struggling to break past the $100,000 mark, then you need to change things up in your coaching/services business. 

I don’t mean a fancy new offer or doubling your prices. I’m talking about a scalable source of recurring revenue that does not take up hours of your time. In your quest to expand your business, you’ll come across two common options: a membership site and a subscription site. 

While they sound very similar on paper, they’re quite different and both worth exploring. Read on as I break down the key differences between a membership site and a subscription to help you decide which is right for your business.

What is a Membership Site?

A membership site is a gated part of your website (or a dedicated platform) that contains exclusive content only accessible to subscribed members.

The beauty of it? You charge for access. 

Membership sites come in all shapes and sizes, but they are usually built around a specific niche/interest and provide value to their members through regularly updated content and services. 

Membership sites allow you to:

Wait a minute, this sounds a lot like a subscription, doesn’t it? Keep reading to see how they’re different. 

What is a Subscription?

Like a membership site, a subscription allows you to charge a recurring fee to customers either monthly, quarterly, or annually. 

This fee gives access to your services, products, or content. You’re probably paying for a bunch of subscriptions right now: from streaming on Netflix to toothbrushes on Quip, subscriptions have become a common way to deliver physical and software products. 

As long as you charge a recurring fee and deliver your product/service at a constant rate, you can run a subscription for pretty much anything. The beauty in subscriptions lies in the ability to provide a predictable, scalable, and recurring source of revenue to a business. 

Wait - Isn't a Membership Site the Same as a Subscription? Key Differences to Note

Okay, if you read closely, then yes, a membership site can be offered as a subscription, so technically they are very similar (if not the same). However, there are a few key differences to be aware of. 

Subscriptions cover a much broader range of products and services, while memberships have a few key advantages. 

Here are the top differences between the two:

Membership Site vs Subscription: Which is Right for You?

So which model will you choose to scale your business past six figures?

Both a membership site and a subscription offer the promise of semi-passive income and a larger customer base, but which one is truly the best for coaches or consultants? 

Here are three steps to take:

Evaluate Your Ideal Client Relationship 

You’re in business for yourself, so start here: how would you like to interact with your customers?

If you thrive on building ongoing relationships with clients and want to create a collaborative learning environment, a membership model might be ideal. This works particularly well if your expertise benefits from group dynamics and peer learning. On the other hand, if you want to remove yourself completely from the equation, then a product offered through a subscription may be a better option.

Consider Your Content Delivery Preferences

How do you want to deliver this content?

Do you want to give access to an entire library, send a package of courses and content every month, or do something in between?

If you regularly create new content and enjoy delivering it frequently, a subscription model could be more suitable. However, if you have tons of knowledge that your customers can benefit from accessing all at once, a membership site might be more appropriate.

It’s important to understand your goals and resources to create content.

Membership sites typically require more upfront work to create community features and content libraries but can provide more stable recurring revenue. Subscriptions might be easier to start but require consistent delivery and content creation to maintain value.

If the thought of creating an entire courseload makes you nervous, I have a secret: PLR. PLR is a fantastic way to source white-label ready-to-sell content for your membership site.

Consider your Scaling Strategy

Beyond breaking out of the grind that comes with client work, what are your goals for this new offer? 

If you want to scale your coaching/services business into a knowledge-based business or community, then a membership site is a fantastic way to do it. 

On the other hand, if you want to deliver specific content, products, or services that don’t require a community component, then a subscription is probably the best option.

Download the Free Membership Site Launch Checklist

Coaching and consulting can be rewarding, but it is a tough business to scale. 

If you have your eyes set on mid-high six figures, then you will need a semi-passive offer that can help you grow your business without filling up your entire calendar or hiring staff. That offer could be a membership site. 

I’ve created a downloadable guide to creating a membership site to help set you up for success. 

Click the button below to download your guide. I have an extra-special bonus for you too: if you want to fill your membership site with stellar content, then you’ll also get a 30% discount on your first order for my shop.

So click that button and build the membership site of your dreams!

Enjoy!