What Is Club Plan Selling?
Club plan selling is a type of sales approach that relies on customers who already purchased a product or service to refer others to the company. This type of sales strategy is often seen in subscription-based businesses, such as gym memberships, music streaming services, and software programs. The concept is that customers who are already using and enjoying the product or service can be a great source of new business.
How Does Club Plan Selling Work?
The main idea behind club plan selling is to give customers an incentive to refer new customers. Companies typically offer discounts, free upgrades, or other benefits to existing customers who refer new customers. This type of sales approach is beneficial to the company because it helps to build a loyal customer base. Club plan selling also allows companies to reach new customers without spending a lot of money on traditional advertising methods.
Examples of Club Plan Selling
Here are some examples of companies that have successfully used club plan selling:
- Gym memberships: Many gyms offer discounts to existing members when they refer someone else to join the gym.
- Software programs: Companies like Adobe often offer discounts to existing customers who refer others to purchase their software.
- Subscription services: Companies like Netflix and Spotify offer discounts to existing customers when they refer someone to sign up for their service.
Benefits of Club Plan Selling
There are several benefits to using club plan selling as a sales approach:
- Cost-effective: Club plan selling is a cost-effective way to reach new customers without spending a lot of money on advertising.
- Loyal customers: Customers who refer others to a company are likely to be more loyal and more likely to continue doing business with the company.
- Efficient: Club plan selling is an efficient way to reach new customers, as it relies on existing customers to do the work of finding new customers.
Club plan selling can be an effective sales approach for companies that want to reach new customers without spending a lot of money on advertising. By offering incentives to existing customers who refer new customers, companies can build a loyal customer base and reach new customers quickly and efficiently.