The purpose of this document is to further explore the membership business model.
https://www.loom.com/share/4c9451123da74e719d68480017bd3b8f
https://www.loom.com/share/979fb49e8366418fa47b6d5a5ce07ac8
The March 2021 Business Model exploration, lead to the following conclusion
<aside> ⭐ It's critical to set up the company's business model with the right incentives. Any entity that has misaligned incentives will fail in the long-run — or at the very least, operates in a way that is antagonistic towards its customers.
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Therefore we will adopt a membership model, which aligns our incentives with the health and happiness of our members, where we will charge members a membership fee and offer all products and services at or near cost, similar to the Costco model. This would structurally avoid dark patterns including for example the temptation to upsell members products they don’t need (e.g. auto repair business), or financially making our most engaged members our worst members (e.g. Gyms) or creating demand for products that don’t benefit the member, (e.g. certain pharmaceutical companies), more examples here.
In this memo we’ll explore the membership concept at a deeper level to allow us to create value and build trust with our members over the long term, potentially forever and answer practical structural questions.