Memberships are getting interesting again. I’m seeing more independent brands experiment with two very different membership models:
(1) Paid memberships — recurring programs that offer credits, exclusive access, or member-only perks
(2) Rank-based memberships — spend-driven tiers similar to airline status or Sephora’s Beauty Insider.
Could you break down how founders decide between these two models, what type of businesses each one works best for, and how successful Shopify brands structure them?
Hey @LizRideal
Yeah, memberships are definitely having a moment again, and the choice between paid versus rank-based really comes down to your business model and customer behavior.
Paid memberships work best when you have high repeat purchase frequency and can offer genuine ongoing value. Think subscription box brands, consumables, or stores where customers naturally buy monthly or quarterly anyway. The membership fee needs to pay for itself quickly or customers will cancel. Brands like hippy feet or trade coffee do this well - they offer credits, free shipping, or early access that more than covers the monthly fee if you’re a regular customer. The key is making the math obviously work in the customer’s favor.
Rank-based systems are better for brands with varying purchase frequencies or higher price points where not everyone buys regularly. Fashion brands, beauty stores, or lifestyle products fit here. You’re rewarding your best customers without asking them to commit upfront. It’s lower friction because there’s no credit card charge to join - people just naturally move up tiers as they spend. This works when you want to encourage larger purchases or create aspirational status.
Hello @LizRideal ,
I hope you are well!
Basically both of them are different and all the businesses can setup the membership according to their budget.
1.) Paid membership - Mainly used for all customers to pay and get the access for the hidden content or special price provided to the members.
2.) Rank-based-membership - It is mainly used for the special customers like the customers who spent more than x amount in a year or lifetime spent is x amount or there is some special customers who get any tag.
Basically, both of them have some specific period but the special benifits on rank-based-membership encourages customers to spent more.
I want to inform you that this both membership can be setup with the help of AiTrillion.