[Recurring Revenue Series] How to Create a Private Club Model


We’ve recently embarked on a mission to review the 9 Models of Recurring Revenue. Our aim is to showcase different ways businesses can implement recurring income. The Private Club Model is fourth on our list, and we’ll be reviewing it in this article. If you haven’t already done so, make sure to catch up on the previous models. You can find them here - The Network Model, The Subscription Box Model and The Content Subscription Model. You might just find one that could work exceptionally well for your business. 

The Private Club Model offers access to something of limited supply, on a membership or subscription basis. You often find this model associated with private sporting clubs such as prestigious golf clubs, tennis clubs etc but the private club can also be applied in B2B and B2C companies. It’s about gaining long term buy in to limited resources for a higher cost.

An interesting example is the Genius Network® that was started by Joe Polish, who was once a humble carpet cleaner. Polish now runs this private club mastermind facilitating three idea sharing meet ups a year for entrepreneurs, authors and innovators. For an investment of $25,000 per year, Polish says “it’s kind of like a wisdom network, it’s where you find people who have incredible wisdom to share.”

Polish is now regarded as a highly influential thought leader and his Genius Network attracts individuals who operate on average a $9 million revenue per year business and who want to get their business to the next level, or "10x it", as they like to say. This private club brings some serious industry players and Polish aims to lure the brightest minds together to focus on deepening personal and business relationships. Well know members of his group have included Peter Diamandis, Verne Harnish and Dave Asprey. Speakers have included Tony Robbins, Randi Zuckerberg, Robert Cialdini and Richard Branson to name a few.

Another great example of The Private Club Model is the Harley-Davidson Owners Group (HOG). This is the world’s biggest, most successful motorcycle club. The initial buy in is your Harley-Davidson motorbike, with an ongoing $45 annual subscription. It’s quite staggering that upon inception, 1 million Harley owners joined HOG, an immediate $45 million injection into the company!

Since then the multilingual HOG insider e-magazine has boasted very healthy open rates of 49%; 62% of members have attended an event; the HOG photo upload App has over 30,000 downloads from Apple’s App store; but the dollars really come from the fact that HOG members purchase 30% of all new Harley-Davidson bikes and spend more than double that of non-members at dealerships.

This Model Is Ideal When You Have…

  • Something of limited supply - almost always a service or experience - that is in high demand among affluent consumers.
  • A market of achievement-oriented “strivers” who are always attracted to the greener grass on the other side.

Insider Tip

The secret to making a private club work is not offering á la carte access. You need to force customers to make a decision: if they want access to something truly rare, they must enter a long-term relationship in order to get it.

That concludes our overview on The Private Club Model. Next up we’ll be reviewing the Simplifier Model, so stay tuned! As you learn about the different recurring income models, keep an open mind as to how it might work in your business.

We are particularly passionate about recurring revenue models because we know that companies with good recurring revenue models are achieving higher valuations. If you want to increase the value of your business, recurring revenue should be a top priority.

Don't want to miss the rest of the series?

Drop us your details below and we'll send them straight to your inbox as soon as they are published.

Understanding the 8 Drivers of Business Value

Today, we’ve discussed a model for Recurring Revenue, which is one of the 8 Drivers of Company Value.

Now you can measure your business against all 8 Drivers of Value and get an indication of what your business is worth today.

With that information, you can develop a clear plan to increase the value of your business. You'll not only find smarter ways to grow, you'll also be putting yourself in the best position to exit your business, when the time is right, for a premium price.

interested to know 
what drives the value of your business?

We invite you to take the Value Builder Score.

This is a powerful bench-marking tool that rates your business against the 8 Key Drivers of Business Value. Over 45,000 business owners have now taken this assessment.

The Value Builder Score shows you what your business looks like through the eyes of an acquirer. You'll discover what's silently dragging down the value of your business, or whether you have untapped hidden assets with the potential to increase value.

The great thing is, there's no cost to take your score and it only takes about 10 minutes to complete.

What you'll discover 

  • 1
    Ways to make your business more valuable than your industry peers
  • 2
    How to spot your company's hidden assets or silent killers
  • 3
    Where you are now, where you need to be, and how to achieve the business valuation of your dreams
Simon Bedard

Simon Bedard

CEO and Founder, Exit Advisory Group

If you would prefer to reach our directly, I would love to start a conversation. Connect with me and send me a message on Linkedin, or get in touch any of the ways below. Old fashion phone calls are also welcomed!

1300 133 540

Exit Planning | Maximising Company Value | Business Sales

Follow us on:

At Exit Advisory Group we help entrepreneurs maximise company value and exit at the top of their game.

We do this by giving business owners the tools and strategies to design more profitable, efficient and enjoyable businesses to own - that are also less dependent on them. When they choose to exit, they are in the best position to unlock the wealth in their business and be rewarded for their hard work.

If you liked this article we'd love you to share it!