Ep 227: The Hidden Kiss of Death for Your Membership
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The Hidden Kiss of Death for Your Membership
Most membership owners focus on cancellations.
But there is another problem that quietly drains revenue.
Failed payments.
They often go unnoticed.
And they add up fast.
Failed Payments Are a Revenue Leak
This is not a small issue.
One example:
97 members lost in one month
$35 monthly fee
$3,500 in monthly recurring revenue gone
Over time, that becomes:
$40,000+ in MRR they’ll lose in just one year
And here’s the problem:
The member did not choose to leave.
The system let them leave.
A Failed Payment Is a Decision Moment
Most businesses treat this like admin.
They send:
One email
Maybe two
Then they stop.
That is where the loss happens.
At this point, the member has already disconnected.
So your job is not just to notify.
Your job is to re-sell the value.
Why this matters
Why they joined
Why they should stay
Shana recommends a 21-day follow-up window.
Not reminders.
Re-engagement.
Annual Pricing Has Clear Trade-Offs
Annual pricing can work well.
Upside:
Cash collected up front
Faster reinvestment into growth
Can increase lifetime value if retention is low
But there are real risks:
Harder renewals at higer price points
Requires strong value delivery all year
Poor cash management creates problems
If members are not staying long already, annual can help.
But it only works if you support it properly.
Monthly Pricing Works With Strong Retention
Monthly is not the problem.
It depends on the business.
Example from Shana:
12,000–15,000 members
94% retention rate
Monthly only
For them:
Members stay longer than a year
Annual would reduce profitability
Monthly keeps operations simple
The model works because retention is strong.
Quarterly Pricing Increases Commitment
Some programs need more buy-in.
That is where quarterly comes in.
Shana shares this for 90-day focused programs.
Why it works:
Higher price point
Higher commitment at entry
Trade-off:
Lower conversion rate
But it changes who joins.
Fewer “toe dippers”
More serious members
That impacts the experience inside the program.
Pricing Shapes Who You Attract
If you are getting the wrong members, look at pricing.
A low barrier often leads to:
Lower commitment
More drop-off
More failed payments
A higher barrier can:
Improve member quality
Improve consistency
Pricing is not just about sales.
It shapes behavior.
What This Really Comes Down To
You are not choosing between monthly, quarterly, or annual.
You are choosing:
Who joins
How they show up
How long they stay
And you are deciding:
Do you have a system to keep them?
Your Next Step
Look at your failed payments.
Look at your pricing.
Both impact your revenue more than you think.
Apply to work with Shana at shanalynn.com
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