MemberGate Sites Doing $70-75 Million Per Year in Total Subscription Sales

A couple of years ago, when I last checked on MemberGate, they claimed their sites were doing about $20-25 million in sales.   CEO Tim Kerber just answered my query saying, “For Oct 08-Sept 09, I would estimate our sites brought in approximately $70-75 million combined revenue. “MemberGate is ASP, hosted software that “powers” subscription sites, including a content management system, ecommerce system, DRM/security, and subscriber records management. They currently have about 900 clients using the platform but probably only about 400 of these are selling subscriptions.Tim noted his clients range from “a number that stall before ever getting launched balanced against some that manage to do a million or more per year. A far majority of our clients are smaller one-two person operations, many happy to be doing multiple six-figures a year.”I also asked SubHub CEO Miles Galliford how much his clients are making (they provide a similar technology to MemberGate’s). He replied, “It is difficult to know all the revenues across all of our clients sites as many of them take payments via PayPal Standard which happens off site. However taking the sites where we can measure subscriptions and estimating the ones where we can only track the number of members (not revenues) I would say the figure is around £5 million ($8m). In addition we have 20 B2B sites which invoice clients and take payments offline. I would guess that they would add a further £500k – £750k so a good estimate would be £5.6m/$9m.”Although the industry analysts at places like Forrester and Veronis & Suhler primarily focus on the mega sites — especially those published by public companies — I’m very drawn to this other world. The people who are making six figures to maybe a few million a year. There are far more of these sites out there than I think analysts realize exist.  These are sites like http://www.BouncyCastleOwner.com How can you not love that? It’s niche publishing coming alive again… and making respectable income for hundreds, if not thousands of people.  In a world where more professional journalists every day get thrown out of jobs, we need a flourishing niche publishing industry.