MemberStack Fees

Hello @DuncanHamra and @belltyler!

Can you please provide some information on exactly how the MemberStack fees work?
The monthly or yearly billing that is paid to MS is straight-forward. However the 0 to 3% per transaction is unclear.
How is that paid to MS?
Is it pulled via each customer payment or is it aggregated into a second monthly or yearly bill?
Is it paid to you via Stripe?
Is it charged to the credit card on file?
All details are needed please…
:money_mouth_face:

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Hey John! Great questions :smiley:

The percentage fee is pulled when the transaction is successful. So, when you receive a payment from Stripe our fee has already been accounted for.

Also, a note on the different rates: Pro is 3%, Scale is 1%, and Established is a negotiable rate between 1-0% depending on the resources we need to dedicate to the site :+1:

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@DuncanHamra, can you provide a bit more detail on why you collect a transaction fee on top of Stripe’s fee? I can’t see a good reason why as the value (storing and processing user information/data and hiding content) is a fixed value and not relative to the subscription fee that a customer may pay to access data.

Memberstack is not storing or serving up the actual content that users pay to access.

At the basic level, users are paying about 6% (2-3% in credit/debit card processing which is unavoidable, plus your 3% fee). This is in addition to paying a monthly fee for the service.

Hi Andre!

This is a really good question and I’ll do my best to answer it :grinning:

There are a few different reasons why we have transaction fees. The biggest reason though is because we need to scale our platform as your website/business scales. Our costs are not fixed per website/business that is using us. For example, a site of ours that only has 10 members with low site traffic costs us considerably less than a site that has 100,000 members with high monthly traffic. The transaction fee allows us to scale our services as our customers businesses grow.

Please let me know if you have anymore questions about this! Happy to answer them.

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Your example speaks more to a need for a tiered system based on number of members and not a business model based on the price of a subscription for a member. Consider 2 sites with 10k members. Site 1 charges a subscription fee of $5/month and Site 2 charges $25/month.

In this scenario, you provide the exact same value to both sites in terms of service and your cost to provide the service in terms of data storage and processing is the exact same. But you make 5x on Site 2 simply because they charge more for their subscription.

@aweathers I’d like to offer up a different point of view. Based on your numbers:

Site 1: $5 per month x 10k members = $50,000 per month
Site 2: $25 per month x 10k members = $250,000 per month

Solution: Upgrade to the MemberStack “Established” for both sites and pay a mere $199 per month (for each site). This route eliminates percentages entirely.

Site 1: $50,000 - $199 = crazy value
Site 2: $250,000 - $199 = crazy value x 5

However, to play devil’s advocate for a moment, let’s cut the member numbers down to 1/10 your suggestion.

Site 1: $5 per month x 1k members = $5,000 per month
Site 2: $25 per month x 1k members = $25,000 per month

Even if you go $199 per month on each site at 1/10th your numbers, it still a no brainer. My friend, this is a steal.

3 Likes

So, to confirm, with the Established Plan, the transaction fee from MemberStack is 0%? The site lists 0-1%.

@aweathers I’m sure the gents (@DuncanHamra & @belltyler) will work it out with you. Two of the best people I know.

2 Likes

Hey @aweathers, the percentage fee on our Established plan is negotiated based on your needs & the load on our system. DM me anytime, and we can make something work.

Thanks, @jason_tinnin :blush: