Forever Connected
How to Build a Community-First Business Model
Summary
Just because your association is a membership organization doesn’t mean it’s a community. This article puts people at the center of your association’s mission, vision, values, and strategic priorities. This community is open, inclusive, and driven by an exciting and focused business model.
A community-based business model revolves around creating value, fostering engagement, and generating revenue by and for the community. It focuses on establishing strong relationships with stakeholders, leveraging resources (skills, ideas, network, etc) and actions (sharing, creating, contributing, etc.) by addressing and amplifying the needs and interests of the community.
Great communities aren't created by investing in software, holding annual events, or publishing content alone. They are built by creating durable and evergreen trust, belonging, and connection.
I lead the product community, a product development learning community designed specifically for associations. Let’s compare ideas and build something great.
We Serve Communities. What is our Business Model?
“The faster things change, the more the world will need this giant, fast-moving kaleidoscope of teams. A team is a team only when all its members are players; and in a world defined by escalating change, they can only be players if they can contribute to change.”
William Drayton
This article is built on two assumptions: (1) All associations need a business model and (2) membership is an outcome of great community.
A business model serves as glue for why, how, and for (and with) whom we create value. It is a blueprint for how we operate profitably as purpose-driven orgs. In contrast, a strategy is a longer-term plan (3-5 years) that outlines how we will achieve our goals and objectives; it guides our direction and how we allocate resources.
Business models are not business plans. Business plans have more in common with strategic plans; they outline your business goals and strategies for achieving them.
Associations are membership-centric organizations, yet we have a mix of business models. I covered this in a previous article: “Five Business Models”. They are:
The Add-On Business Model
The Customer Loyalty Business Model
The Digitization Business Model
The Flat Rate or All You Can You Eat Business Model
The Leverage Customer Data Business Model
A membership business model generates revenue by charging recurring fees in exchange for access to benefits, services, resources, and/or a community. Members typically pay annually or monthly to maintain their membership status and continue receiving benefits. For instance, the American Medical Association (AMA) membership model, members pay annual dues, receive:
Access to JAMA Network medical journals
Continuing medical education resources
Advocacy representation in healthcare policy
Networking opportunities and discounts on conferences
Practice management tools
Exclusive discounts on insurance and other services
Professional development resources
As with all business models, there are pros and cons to the membership business model.
PROS – The membership business model provides associations with predictable recurring revenue while building loyal long-term relationships with members. This should result in lower membership acquisition costs over time. Properly designed, a membership model can be the foundation for data collection opportunities to improve service as well as natural opportunities to provide additional upselling value for fee. The most successful membership programs operate as robust communities in which members become powerful brand advocates.
CONS – The membership business model also has some cons, namely competition from free online communities and resources and seasonal fluctuations in renewals can affect cash flow. Associations live and die by its value so the infrastructure needed to build content, experiences, and services is not insignificant. the need to balance offering exclusive benefits with growth. There is a continuous need to demonstrate value to retain members, who have increasingly diverse needs.
In contrast, a community-based business shifts membership from an input to an outcome of great value. That is, when focused on community first, we put people at the center of all our efforts.
A community-based business model centers on serving an interest-based or practice-based community by providing solutions tailored to their needs. It aims to build a symbiotic relationship where the association and its members thrive by contributing positively to the community's well-being. It can be described in the following ways:
Bottom-Up Engagement – Actively involves and engages community members in various aspects of the association, seeking their input and participation.
Value Alignment – Aligns its offerings with community needs, preferences, and values, contributing positively to the member community's health and level of engagement.
Resource Utilization – Leverages community resources, talents, and assets to create and sustain products and services.
Relationship Building – Establishes strong, trust-based, and ongoing relationships across the membership, fostering loyalty, support, learning, and engagement.
Collaboration – Encourages partnerships and collaborations with relevant organizations, businesses, networks, and institutions to strengthen community ties.
Adaptability – Adapts quickly to changing community dynamics, needs, and preferences, ensuring ongoing relevance.
Feedback Integration – Welcomes and acts upon feedback from the community to continuously improve offerings and services.
Empowerment – Empowers community members by involving them in decision-making processes or offering opportunities for skill development.
Now, let’s marry the description of a community-first business model to the business model canvas developed by Alexander Osterwalder. I covered this framework in an earlier article: “How to Design a Winning Business Model.”
If an association can evolve from a traditional benefits model (magazines, discounts, etc.) to a robust, value-based community, it can unlock and create infectious connection via its business model. Over time, using community-first design principles the community will both deepen and widen:
People are attracted to the association’s purpose. The association desires its members to participate actively in contributing to and shaping the future.
People join and become members. Especially those who want to contribute to building and sustaining the association value proposition.
Members gain value and learn from each other. This is when an association invests in and creates enormous amounts of value that positions members as peer connectors, peer learners, and future-oriented co-creators. Members are loath to abandon the community, resulting in increased retention and therefore improved lifetime value.
Members make impact together. Through mutual support, open and focused venues for active participation afforded by intentional design. Co-creation creates stickiness and helps result in higher gross margins due higher retention and a lower cost of service.
Enthusiastic members help acquire new members. Strong communities attract new people who also enthusiastically have a vested interest in peer connection, robust collaboration, and a thriving community.
The result of an intentional investment in designing and managing one’s community can have a powerful network effect. As engagement grows, the community gets smarter and more connected, faster to respond and help shape. The culture shifts from sit and consume towards moving and shaping an innovative future.
An Association Example
“Community-based businesses center community in all parts of their organization, from sharing ideas and building bonds to connecting in a collaborative and authentic way with others over shared missions and visions.”
Natalie Brite
Now let’s tie the concept of community to the business model canvas using the example of a fictitious association that connects apple growers. As you can see here, the business model canvas is a one-page tool with nine blocks. Completing the canvas should always be an inclusive activity involving participants who are open to ideation yet focused on making choices that tell an integrative innovation story.
The left side of the canvas (in pink) are the business blocks. They are the ones that challenge us to think through cost structure, key resources, partners, and activities to make an association function. The right side of the canvas (in green) focuses on the member or customer. This is where we clarify our membership target (customer segment) and outline the important relationships, channels to reach them, and the revenue we expect from our value creation efforts.
There is no one right way to build the business model canvas, but I recommend starting with value proposition and customer segments. I view these cells as an anchor to understanding with clarity who we are serving and what value we are offering them.
Value Proposition – The Apple Growers' Association offers a unique, community-driven platform where growers of all sizes come together to shape the future of apple cultivation through collaborative learning and innovation. Members gain access to an unparalleled network of peer expertise, where shared experiences and collective wisdom drive both individual success and industry advancement.
Customer Segments. The bread and butter membership comes from small family orchards, commercial apple operations, organic growers, specialty variety growers, new growers, research institutions, industry suppliers, and sustainable agriculture advocates.
Members – Individuals and teams passionate about fostering connection, learning, and the shaping of the association’s future.
Volunteers – A subset of membership who play a more active role in creating and furthering the association’s culture and interests.
Prospective Members – Future members or non-members who may want to engage, but are not interested in full blown membership.
Customer Relationships. This can include a number of important relationships to foster connection including, but not limited to: peer mentoring networks, member-led committees, online platforms, regional chapters, special interest groups, knowledge circles, and industry advocacy groups.
Engagement Forums – Regular meetups, forums, and workshops to facilitate networking, idea exchange, and innovative solutions.
Collaborative Projects – Joint initiatives encouraging participation, mutual support, and learning among members.
Continuous Communication – Regular updates, newsletters, and online platforms fostering ongoing connections.
Channels. Apple growers connect in lots of ways (digitally and in-person): online and via mobile app; via regional meetups, conferences, and webinar series; through member portals, learning management systems, publications, and social media.
Online Platform(s) – Interactive digital space for content creation, discussions, resource sharing, and collaboration.
Events – Community-driven gatherings, workshops, and seminars held in various modalities (including in-person).
Partnerships – Collaborations with businesses, nonprofits, and complementary organizations helping to amplify our impact.
Revenue Streams. The goal with the Apple Growers’ Association is to both grow and diversify revenue to disperse innovation, create new synergy, and reduce risk.
Membership Fees – Tiered membership offering access to different levels of engagement and resources.
Sponsorships and Partnerships – Collaborative projects and events sponsored by aligned businesses and organizations.
Learning pathways – Longitudinal, peer-based ways of connecting members on shared problems in which they can gain new skills, meet new people, and share ideas.
Consultation and Training – Providing expertise and training services on community-centric practices.
Key Activities. To focus on community first entails an investment in sustained practice in: community facilitation, knowledge and ideation events, standards development, certification programs, member-led research, advocacy initiatives, and collaborative content curation.
Community Engagement Programs – Initiating and managing collaborative projects that directly involve and benefit the membership community.
Resource Development – Creating educational content, toolkits, and resources for members.
Advocacy and Outreach – Representing community interests through campaigns and advocacy efforts
Key Resources. For the Apple Growers’ Association to make an impact as a community, it needs technology, content, processes, and talent. For instance, adopting a community platform as part of an integrated technology ecosystem will make it easier for expert facilitators and volunteer leaders to convene groups, create content, and act on big ideas. Over time, communities collect data that can be useful to further connection and impact.
Network – Strong ties with businesses, sponsors, nonprofits, and leading thinkers.
Knowledge Base – Curated resources, expertise, and best practices in community development.
Technology Infrastructure – Robust online platforms for seamless communication and collaboration.
Key Partners. Apple growers are part of a robust supply chain that can serve as an impact network or community of communities. This can include universities with agriculture programs, government agencies, technology or service providers, sustainability organizations, equipment manufacturers, suppliers, and other agricultural associations.
Sponsors + partners – Groups aligned with our mission, seeking alignment and business development support.
Nonprofit Organizations – Partnering on advocacy campaigns and joint community projects.
Government Bodies – Advocating for policies supporting community-centric apple growing.
Cost Structure. There are costs to building a community-first association. This can include our investments in technology, staff, marketing, communication, content creation, research initiatives, community building, and administrative overhead.
Operational Costs – Staff salaries, infrastructure maintenance, and administrative expenses.
Event and Program Costs – Expenses related to organizing community events and engagement programs.
Technology Investments – Continuous improvement and maintenance of digital platforms.
This example business model canvas illustrates a holistic approach, placing the community at the core of the association's mission, operations, interactions, and culture.
Associations adopting this model can thrive by fostering a sense of belonging, trust, and shared responsibility within the community they serve. Thriving communities create a positive feedback loop where community support leads to business success, further reinforcing their commitment to serving the community.
Infectious Community
“At its core, a community business model isn’t just about transactions; it's about interactions. It’s the art of transforming conversations and shared interests into a thriving ecosystem that’s as profitable as it is personable. We’re talking about a space where members don’t just consume; they contribute, co-create, and connect.”
Sam Hudson
Building a thriving community is not easy! It takes an intentional investment in community design, distributed leadership, and a core belief that creating belonging is our timeless value proposition.
The financially sustainable association is a thriving purpose-driven community. Members don’t pay for discounts on events or industry magazines. They pay for the belonging that comes from innovative approaches to value creation. This value comes in the form of learning pathways and sustained ways of authentically connecting willing participants.
Members want to be connected. When we design for meaningful community, and involve people in novel ways, we begin to offer them what they want: exciting, compelling, and ongoing value. Only then does thriving membership become both a sole focus and an outcome of an innovative community.
I lead the product community; we are a learning community because we believe great relationships help us create the value our members want. Remember, product-led growth fuels connection. Join the product community and flip your destiny.
About the Author
James Young is founder and chief learning officer of the product community®. Jim is an engaging trainer and leading thinker in the worlds of associations, learning communities, and product development. Prior to starting the product community®, Jim served as Chief Learning Officer at both the American College of Chest Physicians and the Society of College and University Planning. Please contact me for a conversation: james@productcommunity.us