What is a Community Business Model?

A community business model generates revenue by bringing people together and charging for the access, transformation, or network you create. Instead of selling only content, the community itself—the conversations, support, and shared wins—is the product.

How Communities Make Money

• Paid memberships: Monthly or annual subscriptions that unlock channels, events, or resources
• Tiered access: Freemium or multi-tier offers that move members up your value ladder
• Programs & cohorts: Bundle community with cohort-based courses or group coaching
• Events & experiences: Virtual summits, retreats, or masterminds with ticket revenue
• Marketplace & partnerships: Sponsored content, affiliate deals, or member-to-member services where you earn a cut

Why Community Works

• Network effects: the more engaged members, the more valuable the space becomes
• Higher retention than standalone products thanks to relationships and accountability
• Lower delivery costs—members help each other, reducing hands-on support
• Strong moat: culture, shared language, and trust are hard for competitors to copy
• Constant idea flow for future digital products, courses, or events

Designing the Model

• Clarify the transformation: what members gain that they can’t get elsewhere
• Map the member journey—from onboarding to alumni—to keep engagement high
• Choose a community platform that supports tiers, events, and automation
• Track core metrics: new members, activation, ongoing participation, and renewal rate
• Reinforce community norms through strong community design and moderation

Growth Tips

• Launch with a focused niche; expand only when culture feels solid
• Highlight member wins publicly—building in public)—to attract aligned people
• Offer entry-level experiences (challenges, private podcasts) as feeders into the community
• Create ambassador or referral programs to reward your most active members
• Continually audit programming; retire what’s stale and test fresh rituals or collaborations