05 Dec, 2024 6 min read

Could payment be the key to member commitment in your community?

Building an online community comes with a lot of decisions—one of the biggest being whether your community should be free or paid.
Could payment be the key to member commitment in your community?

Should joining your community be free or require a financial investment? It's a question that many community leaders struggle to answer. While a free community can feel more inclusive, a paid model might inspire deeper engagement and accountability.

Of course, putting a price against your community seems like a smart choice from a profit perspective, but could you risk putting people off entirely? 

It’s not about which model is better—both have advantages and challenges. Instead, it’s about understanding what is right for your community and its members. 

Let’s dive in.

The #1 benefit of free communities

At its core, an online community is about bringing people together. 

People look to online communities to find a sense of belonging and a support system, so community managers must create a space that’s accessible and welcoming.

A free community naturally appeals to many because of its inclusiveness. With no financial barriers to block participation, interested members from all walks of life are encouraged to join and contribute. 

This sense of inclusion is very powerful. It can create a supportive and diverse network, encourage collaboration, and allow for various perspectives inside your community.

Free community challenges

While inclusiveness is a real strength for free communities, these spaces can face issues that limit their long-term growth and impact.

Lack of vetting

An open-access model means anyone can join, regardless of their intentions. 

Without a thorough vetting process, it’s easy for community members who don’t align with your community’s mission and manifesto to disrupt the group. This can dilute the quality of interactions and deter serious members. 

Spam and irrelevant content

Free communities often become targets for spammers or individuals promoting unrelated products and services. This noise can overwhelm honest conversations and make the space feel less valuable to your members.

Lower commitment levels

Members may not prioritise the community without a financial or effort-based investment.

Members could join your community on a whim but never actively engage. This will create a ‘ghost community’ where moving your members up the participation ladder becomes much harder.

Lack of engagement can also impact their loyalty to your brand. A 2020 McKinsey survey found that members of paid loyalty programmes were 60% more likely to spend more money with a brand after subscribing. However, for free loyalty programme members, that figure drops to 30%.

The case for paid communities

If free communities encourage inclusivity, then why create a paid one? 

The answer is simple: ‘When people pay, they pay attention.’ 

Think about a member signing up for a free virtual community event. They’ll typically fill in a simple form and receive event details straight in their inbox upon completion. It’s a straightforward and quick process for them to go through. 

The challenge, however, is getting members to take the next step—to attend and engage in the event. 

When an event is easy to access, it can also be easy to forget. That’s because there’s no consequence for not showing up (i.e. no money is lost). 

Now, compare that to registering for a paid event in which a member has invested money. Even if it’s a fairly small price point, the perceived value of the event suddenly goes up. As a result, members are more likely to make an effort to attend to get their money’s worth.

For online communities, this type of financial investment could encourage deeper engagement, accountability, and long-term participation among members. 

Exclusivity

A lot of people join an online community for exclusive access, and a paid community is a fantastic way to boost that feeling of exclusivity. In fact, 64% of existing loyalty programme members would be willing to move to a paid membership if they receive more valuable rewards or benefits than the average member.

Let’s take LinkedIn as an example. 

LinkedIn offers both free and paid memberships. The paid membership includes premium benefits, such as seeing who has viewed your page. This information is blurred on the free account to visibly entice members to ‘level up' to the paid version.

Action

When members feel they’re gaining something extra from your community, it can be great for inspiring action. 

After all, paying members feel more obligated to make the most of their investment. Abandoning the community or programme would mean acknowledging their money was wasted, a prospect most people would find uncomfortable. 

Should my community be fully or partially paid?

There are various ways you can use payment in your online community. 

Paid-only communities mean every member is financially invested. This model can result in higher engagement and alignment with your community’s mission from the get-go. Every person has made an active choice to be there and paid the money to do so. 

Like LinkedIn, you could also use a hybrid model and combine free access with premium offerings. 

For instance, a free online fitness community might introduce a paid cohort programme for triathlon training. The benefits of paying for the cohort might include: 

  • Exclusive access to expert triathlon athletes

  • Customised nutrition plans

  • Weekly check-ups from an online PT

A hybrid model like this gives paying members exclusive benefits while maintaining a broader and free-access base. 

How to design premium community experiences

You can’t just set a steep price when creating a community programme—you must deliver a high-value experience that justifies the cost. 

Here are some steps you can take to achieve a successful paid community space: 

Think about your onboarding

Add some friction to your onboarding processes, such as longer forms or surveys. Although this goes against what we’re typically told—keep onboarding simple!—it will ensure that only the most committed individuals join. 

"Good" friction in onboarding can also provide you with fantastic information to fully personalise a member’s experience right from the start. 

Benefits, benefits, benefits

Your community must deliver exceptional value through premium insights, expert speakers, and interactive sessions. Think of it as overdelivering to ensure member happiness and loyalty.

It's all about the member

Tailored feedback, one-to-one calls, and customised resources make participants feel seen and valued. This personal touch is what makes a premium community.

Improve member commitment in your online community

Free communities have their strengths by offering inclusivity and accessibility for all. However, a paid model could be the solution if you want stronger accountability and more active members. 

By designing a premium experience and addressing accessibility challenges thoughtfully, you can create a thriving community where members are involved and invested. 

At Steadfast Collective, we’re community builders. We regularly work with companies to create spaces that members want to visit repeatedly. If you’re designing your online community and would like some help, let’s talk

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