lystn

There are plenty of great things about the membership model - but member churn is not among them. Churn - the name given to the loss of paying members and subscribers - is something that you typically do not have to deal with or even contemplate with most other types of business models. And for some people, the mere concept of having to deal with churn is enough to put them off pursuing their membership idea. However these people are taking the wrong approach, and focusing on entirely the wrong thing. In this episode I dive deeper into misconceptions about churn, and talk about why 'member lifetime value' is the only thing that ultimately matters. Episode Summary: Challenging is the notion that the existence of 'churn' makes memberships a bad business model. "If members leave after X months, I'd be better off doing Y" - really? Let's do the math... Churn is merely a factor that determines what a member's LTV is and the timeline to achieve it. How memberships give you a greater ability to affect LTV than selling courses, doing client work and so on.