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Following a series of quarterly periods filled with negativity and uncertainty, Q3 marks a significant development for the medium-term future of the membership economy.

The economy of membership has been having one of the most turbulent times in its past. As inflation rises, greater risk of unpredictability as well as a more frenzied consumer is driving trend to 2022. What are the repercussions of these shifts as well as the extreme fluctuations in the financial markets, have a direct impact on the entire economy.

This is also true with membership. As the revenue forecasts for 2022 created during the membership boom that began in 2021 began to seem out of reach the yearbefore, the members were required to consider deeper than they had ever before about every element of their plans overall.

In the most basic words: If you're a member operator, 2022 has consistently challenge your beliefs frequently.

Every story that has come up to now has you believing that 2022 is going to be extremely negative for membership and we need be ready for a downturn in all sectors of the consumer along with every sector and in every business.

This isn't easy.

In search of the perfect moment

It's true that in tough businesses and economic environments It is our habit to look for signs, signals and evidence that the moment of truth is either near or upon us. And while we often don't know that a change is taking place until weeks and months after it occurs, there's one element that always coincides with such pivotal moments - the moment.

That Q3 moment did precisely this.

This was the moment when members' managers saw extremely positive results despite a very negative sentiment. This was the time that the silence was more powerful than the turmoil. It was the time that people were able to prove the importance of their products and that their customers simply couldn't be without it.

It was a point in that divergence.

The most significant risk to membership operators during economic slowdowns is that they become too negative. Customers who were steadfast and confident in their business through this difficult year will continue to plan, create and prepare for this time, with no idea of the precise date that it could occur. Now that Q3 is over and in sight, we can look at the rearview mirror and say with confidence that it is, indeed, taking place.

The uncertainty creates opportunities

The memberships of our customers beat the market during the March quarter that ended. Across our portfolio we've seen our members break records in terms of revenue, retention rates as well as member count. Staying the course and remaining not influenced by the larger narratives allowed our clients to benefit from the growth of membership that we witnessed in the 3rd quarter of the year.

The sound management of the overall strategy for membership proves to be a key factor in membership outcomes even in difficult environments. Our study shows the greatest results are realized when members opt to put a lot of money into their operations during downturns but stay more cautious during times of rapid expansion. This approach has enabled our clients to access funds available to invest in their business at the right time such as those we witnessed at the start of 2022.

Membership is a game that runs lengthy and people with the same mindset will find that external uncertainty and negative moods can create long-lasting possibilities for sustained growth in the membership.

As a membership operator You can't know the exact timing of upswings or downswings, such as that we experienced during Q3 , however, you are able to be aware of them.

The only guarantee you have is that moments like this are likely to occur at times when you are most likely to be thinking about them.

Keep building.

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