Collecting Subscription Membership Fees | Membership Websites


For brand new membership website owners, PayPal is a recommended resource for recurring subscription payments. PayPal is a trusted leader in payment processing, and offers a good measure of flexibility to meet the needs of your business.

How Billing Cycles and Recurring Payments Work
PayPal attempts to collect recurring payments from subscribers the day after the previous billing cycle or trial period ends. Billing cycles can be structured to collect payments daily, weekly, monthly or yearly, based on the terms established by your membership subscription policy.

Offering Trial Periods/Introductory Rates
Trial periods provide an attractive incentive for visitors to try your subscription service before the regular subscription payments begin. PayPal lets you set the price and duration of your trial period completely independent of the regular subscription price and payment cycle.

Here's an example of a subscription with a 7 day trial period:

14-Day Trial for $1


One Year for $24.95

Since your goal is developing a business that will eventually almost run itself, PayPal is the perfect business partner for you. Visitors may make their payment automatically, without any involvement on your part, leaving you to focus on creating new content, or just doing the things you enjoy most.

How to Set Up Subscription Payments
If you are interested in automating subscription fees or recurring donations, PayPal offers an easy way to do it.

To accept credit cards or payments from a bank account, you can:

1) Add a "Subscribe" button to your website
2) Create links and send them to each customer

If you are asking your visitors to sign up for a $20 monthly subscription, adding a "Subscribe" button would be the way to go. If you are interested in selling ad space, where each subscription payment will be unique in price depending on ad size and placement on your website, creating a unique link and send it to your customer would be the best way to go.

Here are the steps you need to take once you have created a PayPal account:

1) Login to your PayPal account
2) Click on the Merchant Services tab at the top
3) Under the "Create Buttons" section, click the "Subscribe" link
(This page is where you setup the subscription information. This link explains it in detail.)

If you are creating a unique link for an email, make sure you change the last option "button encryption" to "No". If you don't you won't get the email link.

I recently began accepting private advertisers. I needed an easy way to accept monthly subscription payments. I like Google's AdSense program because I can add the code and forget about it. I wanted it to be that easy for private advertisers as well. PayPal provided the solution.

My biggest lesson here would be:

The more you automate, the more "passive" and successful your passive income business will become.

Visit PayPal for more information on subscription payments.

by Andrew Fling


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