The Goal: Work out your Member Acquisition Cost (MAC) — the average amount your organization spends to recruit one new member.
Before You Begin:
- Choose the period you want to measure, and use that same period for both figures below.
- You need the number of new members for that period. Work it out the same way as for Retention Rate.
- You need your total recruitment cost for that period. Your accountant can provide this figure.
Why this number matters
Member Acquisition Cost is the total monetary cost of recruiting a new member. To maintain or grow your organization, you need an average monetary value for a potential membership sale. MAC gives you that number.
Calculation: Total recruitment cost ÷ number of new members = MAC
Step-by-Step Instructions
- Find the number of new members who joined during your chosen period, using the method described in Retention Rate.
- Ask your accountant for the total amount spent on new member recruitment over that same period.
- Divide the total recruitment cost by the number of new members. The result is your Member Acquisition Cost.
Example
Over a single year, 75 new members joined and $28,875 was spent on new member recruitment.
- $28,875 ÷ 75 = $385
Member Acquisition Cost = $385
Common Pitfalls
- Mismatched periods: The new member count and the recruitment spend must cover the same period. Pulling them from different date ranges gives a cost per member that means nothing.
- Counting renewals as new members: Only members who joined during the period belong in the denominator. Renewing members were not acquired in that period.