What if you could increase the value of your business from $15 million to $120 million within a year? Heck, I know a lot of us would gladly take either value!
But if you invested 10 years of your life into building a company, it would be a huge life transformation to get the second value, wouldn’t it? Can you imagine that kind of money?
It’s a lot closer than you might think, when you Stop Your Members from Quitting.
I have several clients with membership businesses in the $5 million to $7 million range in revenue. With a monthly churn rate (the number of dropped members in a month divided by the number of members at the beginning of the month) of 10-15 percent, those businesses are worth three to five times their annual revenue, about $15 million. A nice pay day.
But with a member churn rate of 2 percent to 5 percent, one of those same businesses with the same level of revenue would be worth 12 to 15 times its annual revenue. The selling price for that business would start at $120 million. That’s a whole lot better, isn’t it?
If you are going to invest all the time and money into building a membership program, isn’t it worth building one with a lower churn rate? Same business, just a lot fewer hassles and a lot more money for you!
There is a choice. Stopping Your Members from Quitting, decreasing member churn and increasing member growth are surprisingly easier than you’d expect. All it takes is a better understanding of what members really want and to stop overwhelming them with content.
Prepare to double or triple your membership by enrolling in a Live Cast Workshop I’m hosting, Stop Your Members from Quitting.
As church marketing expert Larry Osborne often says of churches, “There’s no reason to open the front door until you close the back door.” If it’s time for you and your team to close the back door and grow your membership program, register for Stop Your Members from Quitting here.