Membership Management Software

How Profitable Is A Membership Management Software? (Updated for 2024)

Pat Walls

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Updated: September 27th, 2024

How Profitable Is A Membership Management Software? (Updated for 2024)

So you want to start a membership management software?

And the first question that came to your mind was, “well, are membership management softwares actually profitable?”

Especially considering:

You could start a membership management software with as low as $199
Based on our data, membership management softwares generate an average of $555K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a membership management software.

Let’s dive in!

Is a membership management software profitable?

Yes, a membership management software is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $555K per year with an estimated gross margin of 90%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your membership management software.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your membership management software is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a membership management software worth it?

If you’re wondering if a membership management software is worth it, the answer is a big YES. With membership management softwares, you have the potential to earn $555K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a membership management software to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful membership management softwares case studies.

Examples Of Profitable Membership Management Softwares

Here are a few examples of profitable membership management softwares, and a few more details about them:

1. Join It ($480K/year)

Mitch Colleran bootstrapped Join It, a SaaS platform that helps organizations sell and track memberships, after leaving his role at Eventbrite. He spent three months in Spain, teaching himself to code and building the initial product. Since launching, Join It has gained 700 paying organizations and is still focused on refining its business model and market fit.

Is it profitable? Yes
How much money it makes: $480K/year

How I Quit My Job And Launched A SaaS Company From Spain

Join It, a bootstrapped SaaS platform that helps organizations sell and track memberships, has been making $20,000 per month and is attracting customers through Google Ads, Organic Search, and Word of Mouth, despite being turned down multiple times by incumbent membership platforms.

Read this case study

Read by 33,419 founders

2. Outseta ($300K/year)

The business idea originated from the founders listening attentively to early-stage SaaS start-up founders who expressed that their tech stacks felt somewhat pieced together, and they experienced difficulty integrating numerous tools.

Is it profitable? Yes
How much money it makes: $300K/year

How Geoff Roberts Bootstrapped Outseta To $25K MRR

Outseta provides essential SaaS tools for early-stage startups, generated revenue of $25K/month, and was launched through a strategic mix of Product Hunt, BetaList, content marketing, and email prospecting to drive growth.

Read this case study

Read by 463 founders

3. Wellyx ($720K/year)

Fitness enthusiast and former health club manager Katherine Barlow founded Wellyx in 2015 after struggling to find an effective management tool for her club. Frustrated by existing software limitations, she launched Wellyx, which now generates $60k per month.

Is it profitable? Yes
How much money it makes: $720K/year
How much did it cost to start: $50K

I Built a Fitness Management Software That Makes $60K/Month

Discover how Katherine Barlow co-founded Wellyx, a cloud-based management software for the wellness and fitness industry, which now generates $60k per month and aims to reach $150k by the end of the year, offering an all-in-one solution to streamline operations, simplify bookings, and cut costs for gyms, spas, dance studios, salons, and yoga studios.

Read this case study

Read by 1,732 founders

Learn more about starting a membership management software:

Where to start?

-> How much does it cost to start a membership management software?
-> Pros and cons of a membership management software

Need inspiration?

-> Other membership management software success stories
-> Marketing ideas for a membership management software

Other resources

-> Membership management software tips

How much can you make with a membership management software?

With a membership management software, you can make an average of $555K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $199. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a membership management software make a week?

Based on our data, average weekly revenue for a membership management software ranges around $11.6K. As such, you could see monthly revenues of $46.3K.

To know if your membership management software achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your membership management software.

How much do membership management softwares owners make?

The income of a membership management software owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established membership management software is about $11.6K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a membership management software owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Membership Management Software Profit Margins

Generally speaking, a membership management software can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a membership management software, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, membership management software owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, membership management software owners can ensure long-term sustainability and profitability for their business.

Membership management software owner salary

The salary of a membership management software owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established membership management software, in a prime position, might see an average weekly salary around the ballpark of $10.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a membership management software may be a promising business to start - but the success of your membership management software mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable membership management software.

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Starting A Membership Management Software: Everything You Need To Know

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