Per Active Member

May 3, 2012Comments Off

Back to Monday's post, what would be the benefit of growing the community?

How long does it take to get 1 extra active member? What is the benefit of getting 1 extra active member? What is the cost of getting 1 extra active member?

If you divide the total time you've spent on the community by the number of active members, you get time per active member (TPAM). This is a ratio that describes the time you need to spend on the community to keep an engaged member active.

(p.s. if you're trying to compare the skillset of different community managers, this isn't a terrible figure to use)

If you divide the total returns of the community (financial returns, not imaginary 'social' returns) by the number of active members, you get a return per active member (RPAM). This tells you the financial benefit of every additional active member.

If you divide the costs of the community (your salary, overheads, platform, misc) by the number of active members, you get a cost per active member (CPAM). This tells you how much every active member costs.

Using TPAM, RPAM, and CPAM, you can gain a number of fascinating (and useful) insights. 

Should you grow the community? Has the community reached maximum profitability? Is it viable recruiting another community manager? Has recruiting another community manager reduced or increased TPAM? Is it worth growing the community further? 

This is useful when you want to make a case for greater investment in the community. 

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