Price increases are crucial to the overall expansion of your membership over time.

When executed correctly, price increases will be welcomed by your members and can provide you with a runway to continue operating and serving your members for years to come.

This guide will cover how to effectively communicate a price increase to your members.

<aside> <img src="/icons/bookmark_gray.svg" alt="/icons/bookmark_gray.svg" width="40px" /> The Big Picture: You will need to raise your prices at some point. But in most cases, how you raise your prices is more important than by how much.

The Statistics:

• Memberships that raise prices alongside the introduction of new benefits see increases in churn of only 2-3%
• Memberships that raise prices without the introduction of new benefits experience an average churn increase of 10%

🚀 The Action Plan:

Use this approach when raising prices to minimize your churn risk and delight your current members.

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📘 Table of Contents

Why Raise Prices?

You’re a membership operator and you have an obligation to your members: To continue operating and delivering on your benefits.

You can be guaranteed that your cost of doing business will generally rise over time. This cost can rise from a number of factors. Maybe your ad costs go up. Maybe one of the many services/tools you use to run your membership increase in price. Or maybe you’re investing in creating something new for your members that will increase the value of your membership.

Regardless, we all have costs that must be managed.

<aside> ✅ As an operator, there are two things you must stay laser-focused on: Staying in business and remaining profitable.

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An Obligation to Your Audience

Whether your membership is years old or recently launched, we’re all doing the same thing here: Serving our members. Your audience expects you to be around for the foreseeable future - especially if they’re trusting you enough to pay you on a recurring basis.

Believe it or not, most membership consumers view their membership as a form of investment in themselves. Maybe it’s an investment into their wellbeing, their learning or their entertainment.

Let that sink in for a moment.

You likely haven’t thought much about the further-reaching impacts your membership has on the personal lives of the members inside of it. That’s because you’re focused on creating great content and operating your business.

<aside> 💡 The consideration and realization of the fact that your business makes a seemingly intangible, yet impactful mark on the lives of your members crystalizes the importance of staying in business.

And price increases are one of many tools that allow you to do just that.

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