"Detonating the Member Economy": Creating an Entrance to Connect Community and Business Logic

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Friends who know me know that I like to read books. I not only organize book clubs, but also often publish book reviews and book introductions on the website. Because of this, I have accumulated a large collection of books in my home, almost to the point where the bookcases are full. During the recent holidays, I didn’t go out for fun. Instead, I did a lot of cleaning at home. I used the spirit of “detachment” to tidy up the environment. I cleared out five or six hundred books in one go and passed them on to friends who were interested in reading.

I have always believed that there is a so-called fateful relationship between people and books. Which book people will encounter at what time and in what situation may have been predestined by God. That’s why I became Robbie. Robbie Kellman Baxter (Robbie Kellman Baxter)‘s masterpiece “Detonating the Membership Economy: The Key Core of Building Growth Hackers, the Most Important Profit Secret of Netflix, Amazon, and Adobe” (The Membership Economy) was published and I quickly bought it home from the bookstore.

Not only is the theme of this book attractive, but the author’s experience as a consultant in many companies such as Netflix (https://www.netflix.com/tw/) and National Restaurant Association (http://www.restaurant.org/Home) also makes me believe that this book will not only talk about theory and ignore the practical part. Not only did I study the original book carefully, I also organized an English reading club. I and several friends immersed themselves in the world of the membership economy, and jointly studied how to apply the membership business model in our daily lives.

In the process of reading the book “[Detonating the membership economy: The key core of building growth hackers, the most important profit secret of Netflix, Amazon and Adobe] (https://goo.gl/wVBJ5z)”, it really confirmed my speculation. The author not only introduced in detail why membership should be promoted, but also was more generous. It has years of practical experience, namely seven key strategies: organization, funnel, onboarding, pricing, freemium, technology and successful member retention (https://www.contenthacker.today/2018/02/segment-marketing.html).

To be honest, membership is not new, and its business model is easy to understand. However, why have many companies in the past failed to succeed? The book “Exploding the Membership Economy” not only solves our doubts, but the author also tells everyone what to do? If your company’s products or services are suitable for membership-driven models, you might as well join the Member Economy now! In a nutshell, the focus of the membership economy is actually to maintain an ongoing relationship.

For example, have you heard of the knowledge operation platform “Luoji Thinking” that is popular in the Chinese Internet circle? Luo Zhenyu, who was born in CCTV, opened the public account “Luo Ji Siwei” on WeChat at the end of 2012. Under the slogan of “genuine, interesting and informative”, he covered different topics from society, history, geography, finance, gender, technology, economy and entrepreneurship, and gradually attracted a group of loyal fans to follow him regularly.

After “Luo Ji Thinking” became an instant hit, Luo Zhenyu, Tuo Buhua and others began to think about the possibility of monetization. As soon as paid membership was launched, fans flocked to subscribe, and they quickly made their first pot of gold. Next, “Luoji Thinking” moved into the field of content e-commerce. In June 2014, it launched [8,000 sets of book gift packages] (https://www.douban.com/group/topic/59951409/), which was also sold out within an hour and a half. Then, they started selling mooncakes on July 18 of the same year. As a result, 40,000 boxes of mooncakes were sold in just thirteen days.

In 2015, the WeChat store of “Luo Ji Thinking” was successfully opened, and the products it mainly promotes are also the favorite books of the knowledge community and the majority of book lovers. After that, they entered Alibaba Group’s Tmall flagship store and officially transformed into a self-media e-commerce, and received a response from the majority of members.

It is not difficult to understand the charm of the membership economy from the case of “Luo Ji Thinking”. With the exposure of these astonishing figures, people can see a glimmer of light in the complicated business logic. Dismantling the structure of the membership economy, we can understand: the focus is not on the astonishing amount of each transaction, but on continuous growth and profits.

Just like the author Robbie. Kelman Baxter defines membership economy as “the state of formal participation in an organization or group on an ongoing basis.” This is also in line with the operational logic of today’s society. The community is not only a new business model, but also a connection point for many things.

I have read this book “[Detonating the Membership Economy: The Key Core of Building Growth Hackers, the Most Important Profit Secret of Netflix, Amazon and Adobe] (https://goo.gl/wVBJ5z)” many times, and it can be said that I have benefited a lot. Now, I am also happy to recommend this good book to more business friends who are engaged in e-commerce or working in various industries. Well, let us experience the charm of the membership economy together!

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Further reading

• I watched “Detonating the Membership Economy”: Creating an entrance that connects community and business logic
• I read “Digital Transformation for Leaders”: Creating a new business model
• I read the “age of value proposition”: a blueprint for showing the value of business models and services

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