The Private Club model sells access to scarcity and status

The Private Club model is a subscription business built on the principle of exclusivity. It offers members access to something rare that is in high demand, such as a physical location, a unique experience, or, most importantly, a network of other high-status individuals.

The value proposition is not just the tangible asset but the status and sense of belonging that comes with being part of an exclusive group. This model works by creating high barriers to entry, which can include:

• High Initiation Fees and Dues: Financial commitment ensures that members are of a certain economic standing (e.g., TIGER 21's $30,000 annual fee).
• Waiting Lists: Long waiting lists, like those at exclusive golf clubs, signal high demand and increase the perceived value of membership.
• Strict Membership Criteria: Requiring a certain level of wealth or achievement to join (e.g., TIGER 21's $10 million investable asset minimum).

A core insight of this model is that the value is often the network, not the asset. People join not just to play golf or go on vacation, but to rub shoulders with the other people who have also made the cut.

To maintain its power, forcing a subscription is essential. There should be no à la carte or one-time access, as this would dilute the brand and the feeling of exclusivity that makes the club desirable in the first place.