Creating A Solid Revenue Strategy For Membership Models
Revenue for your organization is something you can't ignore in hopes it will just work itself out. You have to keep a close eye on what money comes in, because not only is that money the basis for what you can pay your workers and your bills, but it also controls how much you can expand over the years. Companies need to grow and evolve, along with technology and other factors. Ensuring a robust membership that pays dues or fees helps your company plan for the future. That means you need a strategy that offers multiple and continual revenue streams.
Always Offer a "Deal"
Don't limit your membership payments to just one term and one payment amount. While you'll likely have many who just want to pay month by month, you may have other members who know they'll want to be members for a longer time and who won't want to have so many payments. Always offer some sort of deal that results in people paying more upfront. Think yearly memberships for an amount that is cheaper per month but that requires a larger initial payment. Not only could that get you more money initially, but it would also stop a number of members from leaving early and ending their monthly payments.
Diversify – You Need More Than Just Dues
Look at offering additional benefits on a sliding scale. You need more money coming in than just the memberships. That can include more benefits, some of which are free, but then others could be at a premium tier that requires a nominal fee. Also remember that recordings and transcripts of previous meetings or lectures (depending on what your organization does) are also valuable, and members may be willing to pay for access to special curated collections.
Don't Forget Current Members
One mistake that some organizations make is aiming to get new members with deals, but then nearly ignoring current members who want to renew. Be sure to create some programs for current members that help them save money on renewing memberships or that let them include a new benefits package when they renew. Don't assume that everyone will agree to pay full price when renewing; treat them like new members who are about to pay for the first time.
Your strategy will need to change over time as the economy changes and as people's needs and wants evolve. Partnering with consultants who can develop and monitor your membership and revenue drives is often the easiest way to get your company's membership programs on track. For more information about creating a benefits membership revenue strategy, contact a local consulting firm.