Recently FoundersCard, a subscription service that provides entrepreneurial-minded folks with targeted benefits and networking meetups at select events, has crossed the 10,000 subscriber mark. The company, in addition to reaching that milestone and perhaps because of it, is raising its annual price from $495, to $595.
The company called the price increase ‘modest’ in a statement provided to TNW.
The math here is simple: assuming that each and every FoundersCard member paid $595 yearly, the company would collect just under $6 million in annual revenues. However, the increased price will only apply to new members, meaning the current subscribers will not see a price increase.
Naturally, 10,000 is just a number; in and of itself it says nothing more than 9,999 subscribers, or 10,001, but large round numbers have a way of putting progress into quantified form: with its current mix of luxury and business discounts and benefits, the company has proven its model.
FoundersCard is in fact a very unique company: it can only grow to be so big, in terms of its subscriber base. For a company such as Facebook, or Twitter, having more users is a consistent good; growth is therefore essentially a constant goal. FoundersCard, on the other hand, wants to grow now, but will eventually reach a scale at which the marginal benefit of having a new member outweighs their cost to the system.
You can’t hand out top-tier benefits at key brands and services to one million people, but you likely can for 50,000. What the number is that FoundersCard will reach and ‘ceiling-out’ at isn’t clear, but the company informed TNW that it isn’t near it. Once it does reach a self-imposed cap, however, expect for membership slots to be bid on in the open market.
FoundersCard members receive discounts at hotels, on certain airlines, improved status at select car rental companies, AT&T preferential pricing and the like. If you are the sort of person who travels enough that you have a favorite restaurant in more than a handful of airports, and have memorized gate layouts so that they are second nature in several states, FoundersCard is built for you.
It’s both cheap and not; if you are going to use the service to its fullest, it could easily save you cash, and headache. However, if it doesn’t fit your lifestyle, you very much shouldn’t apply for membership.
10,000 in the bag. Let’s see what the company does next as it grows its headcount, and thus its clout.