Declining Pricing Model (Loyalty or Engagement based pricing)

Introduce a Declining Pricing Model to support community builders by lowering the financial barrier to entry for potential members and incentivizing long-term engagement.

This pricing mechanism would allow community builders to foster sustainable growth, improve retention, and build thriving communities centered around long-term participation.

The Problem

Community builders often face challenges in attracting and retaining members for communities designed for long-term engagement, such as professional networks, wellness groups, or learning platforms. Potential members may hesitate to join due to the perceived financial burden of recurring subscription fees, especially when considering a commitment to a life-long or multi-year membership.

For community builders, this creates a dual challenge:

1.  Acquisition Friction: The upfront cost can deter signups, particularly for communities requiring time to demonstrate their full value.2.  Retention Struggles: Members are more likely to churn when financial obligations feel static or unchanging, despite their growing sense of belonging or benefit from the community.

Without a pricing mechanism that reflects the long-term value of membership, community builders miss out on opportunities to lower entry barriers and encourage enduring engagement.

Proposed Solution

Implement a Declining Pricing Model, where the cost of membership decreases over time, rewarding long-term members while easing the entry point for new ones. For example:

•   Months 1–3: $25/month•   Months 4–12: $20/month•   Years 2+: $15/month

This approach supports community builders by balancing initial revenue needs with a sustainable retention strategy, creating a clear incentive for members to remain committed over time.

Why This Feature is Valuable for Community Builders

1.  Attracts More Members With Lower Barriers to Entry

Community builders can attract hesitant members by offering a pricing model that reduces the perceived risk of commitment. New members are more likely to join if they see the cost decreasing as they become more invested in the community.

2.  Boosts Retention Through Rewarding Loyalty

Retention improves when members feel rewarded for staying. A Declining Pricing Model gives members a reason to continue their subscription, fostering loyalty and reducing churn over time.

3.  Supports Long-Term Value Creation

Communities often deliver increasing value as members build relationships, grow expertise, or gain from shared resources. This pricing model reflects that dynamic by aligning costs with the evolving benefits of long-term participation.

4.  Enhances Financial Predictability for Community Builders

By encouraging long-term commitments, community builders benefit from stable, predictable revenue streams and reduced costs associated with constantly acquiring new members to replace churn.

5.  Differentiates the Community Offering

A Declining Pricing Model positions the community as forward-thinking and member-focused, setting it apart in a competitive market. Prospective members and sponsors are more likely to engage with a community that demonstrates clear value alignment.

Implementation Considerations

1.  Customizable Structure

Allow community builders to design their own pricing tiers and timeframes based on the unique goals of their community. For example, some may prefer steeper initial discounts, while others might offer more gradual declines.

2.  Visibility for Prospective Members

Ensure that the pricing model is clearly communicated at sign-up, so prospective members understand how their financial commitment reduces over time.

3.  Revenue Modeling Tools

Provide community builders with tools to simulate the impact of a Declining Pricing Model on their revenue, helping them confidently adopt this feature.

4.  Integration With Engagement Metrics

Optionally, allow community builders to tie pricing declines to specific engagement milestones, such as attending events, posting content, or contributing to discussions.

Conclusion

For community builders, a Declining Pricing Model is a strategic tool that aligns financial incentives with long-term community-building goals. It reduces acquisition barriers, rewards loyal members, and ensures sustained engagement, enabling community builders to create thriving, vibrant communities. By empowering community builders with this feature, the platform positions itself as a trusted partner in fostering meaningful, long-lasting connections.