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Simple Membership Calculations: Member Acquisition Cost

Simple Member Calculations - Member Acquisition Cost

Members are the backbone of your association and bringing in new members propels your growth. There are different strategic models when it comes to attracting new customers, and while some may cost you money, it is money well spent. To keep your association’s efforts on the right track and make the most of recruitment spending, track how much it costs to secure new members by calculating your member acquisition cost (MAC).

Calculate Your Association’s Member Value »

Your member acquisition cost is the total monetary cost associated with recruiting a new member. Each member that decides to join your association heard about you somewhere – maybe from a friend, a local poster/flyer, or a social media ad. Each of these models of recruitment has different price points, so it is important to track how much your association is spending on acquisition efforts. Once you know this number, you can easily calculate your member acquisition cost to help your team determine the most successful way to bring in new members. Solve using this formula:

Total recruitment cost ÷ # of new members

For example, At the end of 2020, 75 new members had joined and $28,875 was spent on new member recruitment.

  1. $28,875 ÷ 75 = $385
    (Spent on acquisition ÷ number of new members)

Member Acquisition Cost= $385

Once you have solved for your member acquisition cost, you can evaluate if your current model for gaining members is working, or how it might be improved. Take this number to your staff and board to strategize in yearly association planning. Put this calculation to use today and see how it can work for your association.

Calculate Your Member Retention Rate »

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