Tiered dues are a great way to offer your members the benefits they want most for an attractive price. Structured dues generally increase revenue and help with retention, but only when you focus on value over new revenue when implementing and selling this chamber dues model.
Chambers often spend a lot of time designing the tiers so it’s a disappointment when the membership sales don’t go as smoothly as planned. But there are ways to avoid the issues.
2 Tiered-Dues Problems the You Can Avoid
Differentiating the Tiers
The first challenge in presenting tiered dues is to make sure there is enough differentiation between the tiers and the differences must by worth the price. For instance, free lunch and learns may not be a sizable enough difference for people to choose a higher tier even if that benefit is worth $500 and you’re only charging an additional $250. Chances are your members wouldn’t make all of them anyway. Money saved is only valuable if you wanted that benefit to begin with.
Think about cable packages. People generally select a higher-priced tier for 1-2 channels, not the 65 additional ones they get. If you offer members something they can’t live without, they’ll upgrade.
Communicating the Value
Tiered dues don’t sell themselves no matter how beautifully they’re put together. According to XYZ University, “If members are provided with the opportunity to pay reduced membership renewal fees without a significant incentive or unique selling point (USP) in place they may well opt for the cheaper option.” That is the problem most chambers run into if they don’t work with membership to make sure they talk to the value not just the new price structure.
Implementation of tiered dues can be an amazing transition to a larger and more diverse membership. But the roll-out should never look like a way to get more money from members. It should be positioned to give members more value. If that’s not communicated properly, the tiered-dues sale can be a difficult one.
If you want to know more about tiered dues check out this informative video with the knowledgeable Kyle Sexton.