Thursday, June 7, 2007

Which Hump is Your Association In?

Seth Godin has a great post today. He talks about 4 models of pricing. In essence, this could be pricing related to any good or service.

  • There is free - you'll move large volume, it will spread fast, but you make no money.
  • There is really low pricing - You won't have money to market heavily or do big campaigns, but you might get some folks who would have never even seen your category.
  • There is reasonable pricing - pretty normal, standard stuff. Everyone expects a certain amount +/- 10%. Slight changes effect numbers slightly.
  • Then there is really high pricing - Think Donald Trump. You pay more for experience or cache of the brand name.
Godin says most firms play with only one option and are scared of even trying the others. Associations should try to play in every bucket to maximize their reach. Varying your offerings and delivery methods will help you extend your mission. But pricing is just as important.

Take a risk. Play in another bucket. What you find might surprise you.

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