Member Lifetime Value (MLV) is the measure of monetary value of a member based on projected length of membership.
Calculation: Net member-paid revenue ÷ # of members x AMT = MLV |
The Total Spending by Contact Report can be used to calculate the MLV. Set the Membership Status criteria to Active and Courtesy to see all dues and non-dues generated by your members.
![Results of the Total Spending by Contact Report](https://hf-files-oregon.s3.amazonaws.com/hdpgrowthzonesupport_kb_attachments/2023/02-02/0802f316-73f5-49f8-89d6-d972b96430aa/2023-02-02_10-30-05.jpg)
To get the Net value, you need to subtract your operating costs from that total. You can get your operating costs from your accountant. This will give you your Net Member-paid revenue.
The End Count can be obtained from the Retention Rate calculation, described above.
AMT can be obtained from the Average Membership Tenure (AMT) calculation, described above.
Example:
- In 2017, there were 3,000 total members who collectively invested $550,000 in dues and contributed $325,000 in non-dues revenue. The operating costs were $650,000 and the organization’s AMT (average membership tenure) was 17 years.
- $550,000 + $325,000 = $875,000 (dues revenue plus member-generated nondues revenue)
- $875,000 – $650,000 = $225,000 (total member-generated revenue minus total operating costs)
- $225,000 ÷ 3,000 = $75 (net member-generated revenue divided by number of members)
- $75 x 17 = $1,275 (average member contributed revenue x AMT)
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- MEMBER LIFETIME VALUE = $1,275