The membership business model has its own terminology. If you are building or growing a membership site, understanding these core terms will help you make better decisions about pricing, retention, and monetization.
This glossary covers the essential concepts related to membership sites, subscriptions, recurring revenue, and access control.
Access Levels
Access levels define what content or features a member can see based on their subscription tier or assigned role.
Membership plugins assign users to specific access levels automatically after registration or payment.
Example: A site may offer Free, Pro, and VIP levels, each unlocking different content.
Affiliate Program
An affiliate program rewards third parties for referring new paying members to your membership site.
Affiliates promote your site using tracked links and earn a commission for each successful signup.
Example: A blogger promotes your course membership and earns 30% of each sale.
Billing Cycle
The billing cycle is the frequency at which a member is charged for their subscription.
Common payment cycles include monthly, quarterly, and yearly.
Example: A $29 monthly membership renews automatically every 30 days.
Cancellation Policy
A cancellation policy defines how and when members can cancel their subscription and whether refunds are available.
Example: Members may cancel at any time but retain access until the end of their billing period.
Churn Rate
Churn rate is the percentage of members who cancel within a specific time period.
It is calculated by dividing the number of members lost by the total number of members at the start of the period.
Example: Losing 50 members out of 1,000 equals a 5% churn rate.
Content Restriction
Content restriction limits access to specific pages, posts, files, or sections based on membership level or role.
Example: Only Pro members can download premium templates.
Conversion Rate
Conversion rate measures the percentage of visitors who sign up or purchase a membership.
Example: If 1,000 visitors generate 50 signups, the conversion rate is 5%.
Customer Lifetime Value (CLV)
Customer Lifetime Value is the total revenue generated from a member during their subscription.
CLV = Average revenue per member × average subscription length.
Example: $30 per month for 12 months equals $360 CLV.
Drip Content
Drip content releases content gradually rather than providing full access immediately.
Example: A course unlocks one lesson per week over 12 weeks.
Free Trial
A free trial gives users temporary access to premium features before requiring payment.
Example: A 7-day trial that converts into a paid subscription if not canceled.
Freemium Model
The freemium model offers basic access for free while charging for advanced features or premium content.
Example: Free users see limited lessons, premium users unlock the full course.
Grace Period
A grace period allows continued access after a failed payment before the account is suspended.
Example: Members have 7 days to update their payment details.
Lifetime Membership
A lifetime membership grants permanent access in exchange for a one-time payment.
Example: Pay $299 once for unlimited access, with no recurring charges.
Member Dashboard
The member dashboard is the private area where users manage subscriptions and access content.
Example: Members can update billing details or view enrolled courses.
Membership Levels
Membership levels are structured pricing tiers that provide different access rights and benefits.
Example: Basic, Pro, and VIP plans with increasing features.
Membership Plugin
A membership plugin enables content restriction, payment handling, and user management on a website.
Example: A WordPress membership plugin that controls access and automates subscriptions.
Membership Site
A membership site provides exclusive content or services to registered or paying users.
Example: An online course platform that charges for premium lessons.
Recurring Revenue
Recurring revenue is predictable income generated through ongoing subscriptions.
Example: Monthly payments from active members.
Refund Policy
A refund policy explains when members can receive a refund.
Example: 30-day money-back guarantee for new subscribers.
Retention Strategy
A retention strategy includes actions designed to keep members subscribed long term.
Example: Monthly new content releases and member-only events.
Scalability
Scalability is a membership site’s ability to handle growth without performance issues.
Example: Supporting thousands of active members without slowing down.