October 12, 2023

Server Subs 104: Price your Subscription

Pricing can be a tricky task to tackle, but we’re here to make it easy breezy! If you’re looking to incorporate a Server Subscription but have no idea how to decide on a price point, this article will guide you on a mystical journey to find the right price for your subscription offerings.

Be sure to check out the following articles before starting this next lesson:

Determining Your Price

Determining your subscription offering and running your server with the new subscription takes time, and your time is valuable. Reflect on how much you believe the work you’re doing on your community is worth from a monetary standpoint.  Depending on how you answered the expertise question in the previous article, your rate could be higher or lower than other communities.

Example: I’m an expert chocolatier who hosts cooking classes for my Server Subscription supporters. I’m only planning to have one tier available for purchase and an expected membership count of about 100 members.

It’s time for… MATH!

  • I value my time at $25 an hour.
  • I plan to put around ten hours a week into my community’s premium offerings, and I’d love to take home $1000 per month.
  • Knowing Discord revenue share, I would need to actually generate $1,100 per month in revenue for my premium offering to be worth the time it takes.
  • This means I should probably price my Server Subscription offering at a minimum of $11 per month, with a goal of having 100 users join that tier.

If you like plugging in numbers to an equation, use the following formula below:

  • (Monthly hours) x (Hourly rate) = Y (target monthly payout)
  • Y x 1.10 = R (monthly revenue needed)
  • R /  (number of members) = P (premium price)

If you’re planning to offer more than one subscription tier, you’ll have more variables to account for, which means… more math. For example, you could price one tier lower and still get to your desired hourly income by charging more on your other tiers.

Let’s use the same chocolatier example as above, but instead of just one tier, the chocolatier decides to offer three subscription tiers. To plan things out, we’ll use steps one and two from the equation above, then break down our tiers and set the prices to have all tiers equal our desired monthly revenue.

  • Tier 1: 25 members @ $25 a month = $625
  • Tier 2: 30 members @ $10 a month = $300
  • Tier 3: 45 members @ $5 a month = $225

We aren’t tax professionals — please remember that you are responsible for income or withholding taxes that may be due as a result of your Server Subscription payout. Unless your server is all about understanding how taxes work, in which case: would you send me an invite, too? You also know your business best, so be sure to factor in any extra overhead that might impact your revenue.

Your Adventure Awaits

You are SO CLOSE to finally launching your Server Subscription offerings.  The light at the tunnel is nearing closer and closer, and it’s time to start reading 105: Prepare to Launch.

As always, you can find even more resources listed down below:

Topics:
Server Subs
Inspiration
Pricing

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