Paywall strategy: Don't try to be the New York Times

You're probably familiar with paywalls - if you're not, check out our beginners' guide on What is a paywall?. Major newspapers like the Wall Street Journal have successfully transitioned to a paywall model over the past few years. More and more newspapers around the world are adopting paywalls every day.

Exclusive content is the cornerstone of a successful membership program. It's crucial to offer something that cannot be easily accessed elsewhere for free. Exclusive content can take various forms, such as in-depth articles, premium videos, expert interviews, behind-the-scenes footage, or interactive experiences. The key is to provide value that is compelling enough to motivate users to become paying members.

By offering exclusive content, you create a sense of exclusivity and scarcity, making your audience feel special and privileged. This perception encourages them to join your membership program and helps establish a loyal community around your publication.

But what does this mean to you as a small publisher? Should you look to the big newspapers for guidance? Here's an in-depth look at transitioning to a paywall strategy.

Looking for an introduction to paywalls? Check out our article What is a paywall? How does it help monetize content?

The small publisher advantage

Newspapers report on current or local events and culture. They have a very wide and diverse audience with a shared interest in these topics. The newspaper aims to be the best at reporting around those topics. One of the easiest ways to monetize that "best in class reporting" is with a paywall. This monetization strategy fits the newspaper's audience. It trades value for value in a broad and sweeping fashion, without much focus on individual needs or interests.

As a small publisher or blogger, you have an advantage when it comes to paywall strategy. Your community is more focused. By definition, you almost certainly operate in a niche. This gives you special insight into your audience. For example, if you're John Gruber at Daring Fireball, you know your audience follows technology and Apple products. If you're Tim Grahl at Out:think, you know your audience wants to learn how to market their books. If you're John and Dana at Minimalist Baker, you know your audience likes cooking simple healthy meals.

Creating a paywall strategy and its membership model

To create an effective membership model, consider the following steps:

• Define your target audience: Understand your audience's interests, preferences, and pain points. This knowledge will help you curate exclusive content that resonates with them.
• Identify your unique selling proposition: Determine what sets your content apart from others in your niche. This could be your expertise, access to exclusive resources, or a unique perspective.
• Decide on membership tiers: Consider offering different membership tiers to cater to various segments of your audience. Each tier can provide different levels of access and benefits, allowing members to choose the option that best suits their needs.
• Determine content frequency: Decide how often you will release exclusive content to your members. Consistency is key to keep members engaged and subscribed.
• Create an onboarding process: Develop an onboarding process to guide new members and familiarize them with the benefits and features of their membership.
• Monitor and adjust: Regularly analyze member engagement, feedback, and retention rates. Use this data to refine your content strategy and make adjustments as needed.

Case study: Building a profile with the Minimalist Baker

So, how do you take advantage of this knowledge? The first step is putting together a basic profile of your audience. For example, let's think about the Minimalist Baker example we just mentioned. Some things the average reader might do or care about:

• Ingredients in their food
• Cooks meals from scratch
• Special diet needs (gluten-free / vegan)

You might like to offer access to a cooking class as part of your paywall strategy

Start brainstorming around these concepts. Try to figure out how your readers see themselves, where they shop, and what they like to do for fun. Once you've made some educated guesses, send out or post a short survey to get confirmation. This will start to sharpen the picture and you'll get a more complete understanding of your audience.

Compiling an idea list

Now you can start to ask yourself some different questions. What would this hypothetical person be interested in paying for? Where can we add value? Here are some content ideas from this example of paywall strategy:

• An iPad app for storing and organizing their recipes
• A list of restaurants in their city that focus on simple ingredients and special diet needs
• A weekly members only online cooking class
• A cookbook focusing on simple meals

You could share content about restaurants that cater for people with for special dietary needs

Compile a list of your best ideas and start evaluating how you would execute on them. While thinking through ideas, think about how you can test the market. For example, if you feel strongly about selling a physical cookbook, ask your audience to sign up an advanced copy, or maybe even run a Kickstarter campaign to validate the idea and pay for the costs up front. Once you hit on something that your audience is excited about, you can dive into your execution phase.

Deciding on membership tiers and pricing memberships

Determining the right pricing for your memberships is crucial for attracting and retaining members. Consider the following factors when setting your prices:

• Value provided: Assess the value of your exclusive content and the benefits members receive. Consider the uniqueness, depth, and expertise involved in creating the content.
• Market research: Research what competitors or similar online publications charge for their memberships. While pricing should not solely be based on what others charge, it can provide valuable insights.
• Testing and feedback: Experiment with different pricing strategies and gather feedback from your audience. This feedback can help you fine-tune your pricing structure.
• Trial and error: Be prepared to adjust your pricing over time. Monitor member acquisition, retention, and revenue to understand the optimal price points for your audience.

Remember, it's essential to strike a balance between generating revenue and offering reasonable prices that your audience finds acceptable.

Conclusion: A more strategic paywall

As a small publisher, your first responsibility is to keep your core content free. It attracted your current audience, and it will continue to bring new readers to your site. Setting up a hard paywall will make it harder to grow, and it could scare away a portion of your existing audience. It's best to leave the big paywalls for the big publishers with the large undifferentiated audiences.

This doesn't mean you can't set up a paywall. It means you need to use your size to your advantage and be more nimble and strategic about how you do it. A paywall strategy done right can be a fantastic source of recurring revenue. You've already got the blueprint, because you publish in a niche and you know your audience. You just need to do the work and come up with a good idea list to execute on.

Maybe it's a members-only podcast. Maybe it's a video series. Maybe it's a discussion forum. Maybe it's just hiding ads for paying members. Like we've said before, you should try to come up with something that will deliver ongoing value to your audience, so you can charge accordingly for it. Once you find that mix, you can build a more strategic paywall around that idea while leaving your existing content in place.