One of the biggest mistakes I see when people launch a membership is this: they obsess over getting people in and completely forget about keeping them in. In this entry of the CEO Diaries, I want to walk you through what I call membership math—how to think about pricing your membership in a way that supports retention, scalability, and real ROI (for both you and your members).
I’m going to use the Strategy Lab as a real-world example, but you can apply this exact framework to any membership you’re building—fitness, nutrition, business, or otherwise.
The Most Important Metric in a Membership Isn’t New Sales
Yes, more members = more revenue. That part is obvious.
But here’s what most people miss:
👉 Retention matters more than acquisition in a membership model.
It is always:
-
Harder to get a new member
-
More expensive to acquire a new member
-
Easier to keep an existing one
Your current members already:
-
Trust you
-
Have wins
-
Understand your ecosystem
So when we talk about pricing, we’re not just asking “What will people pay to get in?”
We’re asking “What will make people want to stay?”
Start With the ROI: How Long Should Someone Actually Be in Your Membership?
Before you price anything, you need to answer this question honestly:
How long does someone realistically need to be in this membership to get the result?
Not how long you want them to stay.
Not “forever.”
But how long it takes to get the promise.
For Strategy Lab, the goal is scaling to six figures. Realistically:
-
Minimum: ~6 months
-
More common: 12–24 months
That matters because pricing should support that timeline—not fight against it.
A good membership:
-
Gets people in
-
Helps them implement
-
Delivers the result
-
Then lets them move on (if they want)
If someone needs to stay forever to get the outcome, the model is broken.
Industry Standards Matter (But They Aren’t the Whole Story)
Let’s talk baseline pricing.
Fitness & Nutrition Membership Pricing
Industry standard is generally:
-
$10–$49/month for mostly DIY
-
$59–$199/month if there’s live coaching, customization, or frequent calls
Most fitness memberships average 3–4 months of retention. That means if someone pays $49/month, you might only earn $150–$200 per customer unless you actively improve retention.
This is why annual incentives matter (more on that in a minute).
Business Membership Pricing
Business memberships can—and should—be priced higher because:
-
The ROI is financial
-
The strategy is higher leverage
-
The outcomes are measurable
Typical ranges:
-
$47–$99/month for light access or one call/month
-
$149–$297/month for more robust strategy, coaching, and accountability
The key question is always:
Can my member reasonably 10X their investment?
If the answer is no, your pricing or your deliverables are off.
The Retention Math Most People Ignore
Let’s say your membership is $50/month.
If the average member stays:
-
3 months → $150 total
-
4 months → $200 total
Now ask yourself:
How can I increase that number without adding more work?
Some common retention strategies:
-
Offer an annual plan at a discount
-
Incentivize upgrades around month 3–4 (before people churn)
-
Add loyalty bonuses for long-term members
Even something as simple as:
“Stay for a year and save 40%”
can dramatically increase lifetime value.
This is also why some memberships experiment with:
-
Annual-only plans
-
Lifetime deals
-
Midway upgrade offers
It’s not random—it’s math.
Why We’re Offering Monthly and Annual Options
After a lot of thought (and changing my mind), we landed on:
-
Month-to-month
-
Recurring annual
Here’s why.
Monthly payments:
-
Remind people they’re paying
-
Encourage usage
-
Reduce “forgotten membership” syndrome
Annual payments:
-
Improve cash flow
-
Increase retention
-
Reduce churn
-
Reward commitment
What we don’t want:
-
Super cheap pricing people forget about
-
Members who don’t show up
-
People paying but not implementing
If someone values it, they’ll use it.
If they use it, they’ll get results.
Why Cheap Memberships Are Not Always Better
There’s an old-school model that says:
“Make it cheap enough that people forget they’re paying.”
That is a terrible long-term strategy.
We want pricing to:
-
Be accessible
-
But meaningful
-
High enough that people pay attention
When people pay attention, they:
-
Show up
-
Implement
-
Win
That’s the whole point.
Rewarding Loyalty Is a Non-Negotiable
This is huge for me.
I hate punishing loyal customers. So here’s how we think about it:
-
Founders get the lowest price, forever
-
Long-term members get grandfathered pricing
-
Prices can increase for new members—but never for those who stay
If someone leaves and comes back later?
They pay the new price.
That’s fair—and it incentivizes staying.
This is the same strategy gyms use when they say:
“Prices increasing—for new members only.”
It’s a subtle but powerful retention tool.
The Four Membership Price Levels You Should Consider
If you want a scalable membership, think in tiers:
-
Founders Pricing
Best price, best bonuses, limited time -
Evergreen Funnel Pricing
Slightly discounted, automated, time-limited -
Live Launch Pricing
Full price + bonuses (or slight discount) -
Website Pricing
Highest price, always available
This creates:
-
Urgency
-
Reward for early action
-
Clear value comparison
People love knowing they got a deal because they acted early.
Match Your Pricing to Your Audience Size
This is critical.
If you have:
-
A massive audience → lower price works
-
A smaller audience → higher price often makes more sense
Example:
-
100 members at $100/month = $10,000/month
-
1,000 members at $10/month = same revenue, way more complexity
You also need to factor in your time.
If you value your time at $100/hour and you’re spending:
-
20 hours/month → you need at least $2,000/month just to break even
Memberships don’t magically scale without intention.
The Goal of Membership Pricing: 10X Value
My personal rule:
Deliver 10X the value of the price.
If someone pays:
-
$99/month → they should feel like they’re getting $1,000/month
-
$149/month → it should feel like a steal
The goal is for members to think:
“I’d be stupid to cancel this.”
Even if they don’t use everything, the membership should be:
-
Valuable
-
Supportive
-
Worth staying in
Final Thoughts: Memberships Are Simple—but Not Casual
A membership is not:
-
“Set it and forget it”
-
“Easy passive income”
-
“Cheap volume play”
A good membership is:
-
Strategically priced
-
Built around retention
-
Clear on ROI
-
Designed to scale without burnout
If you’re thinking about launching a membership—or repricing one—you don’t need to guess. You need to look at the math, the timeline, the audience, and the value.
That’s how you build something that lasts.
And if you’re an intermediate online business owner not yet at six figures, Strategy Lab was built exactly for you—priced intentionally, designed for retention, and structured to get you real results.