How much should you charge your members?
A value-based pricing guide for your community
Can you put a dollar amount on your community’s value?
If that question makes you cringe, take heart. You’re definitely not alone.
You might have dreamed up your community because of an altruistic desire to make a difference, but in the long run, it needs to provide a return financially as well as emotionally.
Sooo many founders just pull a price point out of thin air with no strategy behind it.
The danger is that you’ll either go too high (and set a price you can’t justify) or go too low (and burn yourself out without seeing ROI).
So how do you choose a price that aligns with your goals and honors the value your members receive?
I like to look at it from two perspectives: yours and your prospective members’.
First, your angle.
Think about your long-term vision. What lights you up? Running a small-group coaching program is very different from running a scalable evergreen membership model.
What are your revenue goals? If you have a flourishing income stream and the community is something you do on the side, you’ll have different goals than someone who plans on the community being their sole source of income.
When I’m coaching clients, we begin with the end in mind. First, we settle on a number the community needs to generate. Then with the help of a revenue calculator we look at different pricing scenarios to get to that number. That helps us confidently land on a price point as our goal.
Finally, think about the investment it will take to deliver on your community’s promise. Consider the time and resources you’re willing to put into creating content, moderating discussions, encouraging engagement, and doing all the things a strong community needs.
That brings us to the member lens.
It’s important to make sure that the price that works for you is one that your members are willing to pay. As I consider how a member would value the community, I like to use the value stick framework created by Felix Oberholzer-Gee.
Imagine a bar graph, which we’ll call the “value stick.” At one end of the stick is the lowest price you could possibly charge and still have a viable business. At the other is the highest price your most ideal member would be willing to pay before opting to cancel.
By focusing on serving your members’ best interest, you can increase their willingness to pay.
Here are a four factors to address as you search to add value:
Can you improve the member experience? Consider the programming, resources, and events a member will have access to and the quality of that content.
What transformation do you promise? A member comes in at Point A and your community takes them to Point B. How valuable is that transformation? How quickly can you help them achieve it? Or, what would they have to pay to make that progress without your community?
How safe do members feel in your community? People join communities to feel seen, heard, and understood in a way they can’t on social media. That sense of safety and belonging is very valuable in this age of social media, AI, and disconnection.
What are the network effects? Will your members make friends, find leads, or expand their contacts in the community? There’s value from the relationships that they might not be able to find elsewhere.
Don’t let fear convince you to give away the farm for free. You need to protect your time and energy.
Imposter syndrome will whisper in your ear that a freebie will “win them over,” and then once the community gets going you can ask people to pay.
The truth is, people place a very low value on things they get for free. And convincing someone to pay for something they’ve always gotten for nothing is an uphill battle.
DO give away: your wisdom and expertise with free content that builds your authority and likability.
DON’T give away: access to “pick your brain,” to the transformation path, or to the close-knit space of belonging and psychological safety.
If you’re feeling overwhelmed, you don’t know how to value your offer, or you just don’t know where to go next, I’m here for you. Book a one-time Community Strategy Session and we’ll get your questions answered so you can confidently move forward.
I’m cheering for you!
🐝 Doors are open to join The Hive, a tight-knit community to help founders build a thriving community without feeling lost, overwhelmed or alone. New members who join by January 9th, get a free 30-minute one-on-one community strategy call with me ($150 value).