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An idea about marketing

(1 post)
  • Started 9 years ago by Marc

  1. Obviously one of the keys will be getting people (the right people) into the space in a relatively short period so that costs are being covered sooner rather than later.

    My thought has always been that the best form of marketing will be members telling others about how great an experience they are having. Referral marketing is far stronger than any other form of marketing because it is "real" for lack of a better word.

    So rather than spending money on promotions and advertising, my thought was to allocate a marketing budget but pay it to existing members who find new members.

    Here's a summary of my idea:
    - All new members, upon joining, must nominate an existing member that brought them to the space. If they responded to some form of ad (say, a mention in an online forum) then whoever was responsible for that post will be nominated person;
    - For as long as the referring member (or investor) and the new member both remain associated with the group then some amount (say 5% to 10%?) of the new members fees will go to the referring member via a reduction in their own fees... or if the referring member is an investor but not a tenant then as a cash payment on top of their regular dividend.

    One obvious question is do we need to do this? Wouldn't happy members tell other people about the place even without getting paid? Of course they would, but that doesn't mean they don't deserve some form of reward anyway... just because it's the right thing to do! (Just because there is lots of work I enjoy so much I would do it for free, doesn't mean I don't want to get paid for it if I'm adding value for someone else!). Given investors benefit from having members actively looking for new members and helping keep the space near capacity, those referring members deserve some real thanks via a tangible share of the benefit (ie. profit) being derived by the investors.

    Another benefit is that it gives members a chance to do something to reduce their membership fees. If a member is really keen on staying but finds cash is tight, they can allocate some time to finding new members (provide we aren't full!), and if they can find a few they could substantially reduce their monthly fee.

    There are lots of small details to work out, such as what happens if a new member names two members as the reason they found the place? (My initial thought is to just ask them to name one and then let them sort it out between themselves as to whether they want to share some of the reward via a payment between themselves.) We'd also have to make sure members aren't looking for just anyone to join... maybe we do this by only commencing these payments after the new member has lasted 2 or 3 months without leaving or being asked to leave?

    Those sort of details can be worked out later once we have a few founding members and/or investors confirmed and who will obviously have input into these decisions.

    In the meantime, what do you think of the general idea of allocating 5% or 10% of revenue to payments to existing members who find new members for the space? Remember... I'm sure we don't NEED to do that, but that doesn't mean it's not the right thing to do!

    Posted 9 years ago #

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