Modeling the Economics of a Membership Community

We’ve made the case for formal business modeling. Simulating your business decisions is a lot faster, cheaper, and less risky than running the experiment in real-time in the real world. So, before you launch a paid membership community, it’s a good idea to create a model in order to understand the conditions under which it can be financially viable and, thus, sustainable.

The purpose of this workshop is to demonstrate a visual, easy-to-understand, and rigorous approach to simulating the financial performance of a membership-based community over time.

The starting point is modeling the level of active members over time. After all, no members means no revenue.

If you want to take a deeper dive, check out the videos on the foundational marketing model regarding the accumulation of customers—community members in this context. The heart of the financial model will be this marketing model. So, it’s a good idea to understand the underlying assumptions—and inherent weaknesses—of the marketing model.

This workshop is under construction. So, check back for updates.

Course Curriculum

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