Tiers or Tears: How to Lose Members

Oct '25 (edited) • Coach Gems💎

Skool just dropped a bombshell: Membership Tiers are officially live!

If you're building an online community, this could be a game-changer—offering free access, Tier 1 (monthly or annual), and Tier 2 (monthly or yearly) all under one roof.

No more juggling multiple groups or workarounds.

Creators are buzzing on X, with posts like "This is a game-changer" and plans to roll it out ASAP.

@TheWillCarter

Sounds like a win, right?

More revenue streams, segmented value, and happier members who pay for what they actually need.

But hold up—excitement aside, I've got a gut feeling this shiny new feature could backfire spectacularly if mishandled.

Tiers aren't just a pricing tweak; they're a psychological minefield.

Done wrong, they could drive members away from your group rather than deeper into it.

People might quit existing communities out of FOMO or frustration, or ghost the ones they're eyeing altogether. (I am already thinking of exiting a few.)

Let's break down the three biggest traps:

Misuse
Marketing Mayhem
Decision paralysis.

I'll back it with some cold, hard stats to show why "more choices" doesn't always equal "more members.

"Trap #1: Using Tiers Wrong – When 'More Options' Means Zero Differentiation.

The allure of tiers is obvious: Cater to everyone from freebie seekers to high-rollers.

But here's the rub: Skool caps you at two paid tiers (plus a free one), which is smart on paper.

Yet, I've already seen creators plotting "hacks" to squeeze in extras via course unlocks or event access.

@skoolinsiders

The problem?

If your tiers look like identical twins with a $10 price tag difference, members will smell the scam. I could point out a few people who are rushing in and not thinking this through already.

Think about it:

Tier 1 gets "basic chats and resources,"

Tier 2 adds "exclusive AMAs." That's not value—it's a nickel-and-dime upsell.

Members who joined for the community vibe will feel nickel-and-dimed, leading to churn. (Again, I'm likely leaving a couple because of this, and I've already been asked to bring "big value" to these groups, but I'm locked out of the next tier without paying?!?!)

A 2024 study on choice overload found that when options lack clear, meaningful differences, consumers experience "decision task difficulty," making them 2-3x more likely to abandon the purchase entirely.

My resource? researchgate.net, a free-to-join group not on Skool.

In subscription land, that translates to folks dipping after a month (or not starting at all).

Worse, over-customization breeds inequality.

Free members lurk but don't engage; Tier 1 feels "meh" next to Tier 2 perks.

Result? Your community's energy tanks as paid folks upgrade or bail, and free ones never convert.

Not that I have ANY EXPERIENCE with this... {There needs to be a sarcastic emoji for people like me!}

Early adopters are already tweaking tiers obsessively—without testing.

Pro tip: Start simple. One killer differentiator per tier (e.g., Tier 2 = personalized feedback).

Anything else?

You're just inviting TEARS.

Trap #2: Botched Marketing – Hype Without the "Why" Tiers are live, so creators are blasting "Upgrade now for VIP access!" emails and posts.

But if your pitch is generic fluff, it flops harder than a fish out of water.

Most folks WON'T know why they need Tier 2—especially if your messaging screams "pay more for the same old group chat.

"Marketing tiers right means storytelling the value, not listing features.

Yet, a big business school analysis (Wharton or Harvard) of subscription models shows that 60% of failed tiered launches stem from poor communication, where customers can't map perks to their pain points. My hindsight is 20/20 based on previous coaches I've worked with over the years.

If you don't explain how Tier 1 solves "I need quick wins" and Tier 2 tackles "I want custom strategies," potential members scroll past.

On X, the hype is real—"I'll definitely be adding this to my community "—but where's the strategy?

@JacobCEdmunds

Creators who nail it will A/B test landing pages, use testimonials like "Tier 2 doubled my revenue in 3 months," and nurture leads with free value ladders.

The rest? They'll watch sign-ups flatline.

Fun stat: Businesses with crystal-clear tier marketing see 25% higher conversion rates, per Stripe's tiered pricing guide.

Don't be the "tears" statistic.

Trap #3: Decision Overload – Too Many Choices, Zero Joins.

Here's the killer: When someone lands on your Skool page, they're not just picking a tier—they're deciding on commitment. Free? Monthly Tier 1? Annual Tier 1? Rinse and repeat for Tier 2. That's 5+ options staring them down, plus the mental math of "Is this worth my time/money?"

Enter the paradox of choice: Barry Schwartz's classic (and endless studies since) proves that too many options paralyze us. In one jam study, shoppers faced with 24 varieties bought 10x less than those with 6.

Fast-forward to subscriptions: A 2025 MDPI paper on consumer over-choice found that 4+ tiers trigger "decision paralysis" in 42% of users under 40, leading to cart abandonment rates up to 30%.

Skool's two-tier limit helps, but layer on monthly vs. annual (with discounts), and Boom, overload!

For browsers, this means "Eh, maybe later" becomes "Never."

Existing members? They might downgrade or quit when the "upgrade nag" hits their inbox.

Optimal sweet spot? SaaS pros swear by 3 tiers max (including free), as it boosts uptake by 15-20% without confusion. This was a massive topic with my mentor 20+ years ago. I often use it as an example, including the secret to getting the highest-priced tiers chosen.

Skool's setup fits if you default to one billing cycle per tier. Otherwise, you're engineering drop-offs.

The Bottom Line: Tier Smart, or Watch 'Em Walk.

Skool Tiers could supercharge your community—more revenue, deeper engagement, loyal superfans. I love the idea, don't get me wrong, but everyone and the dog wants to kiss the marketing machine's backside, and few, if any, will think about it from the other side.

This isn't me being negative, it's me making sure you know what Not to Do!

But misuse them (vague perks), mangle the marketing (no clear wins), or overload choices (endless options), and you'll bleed members faster than a bad breakup.

Early chatter is pumped, but give it a month: The tears will roll in for those who rush without reflection.

My advice?

Pilot with one group. Survey your audience: "What would make Tier 2 a no-brainer?"

Test messaging that sells outcomes, not options.

And remember: Simplicity sells.

In a world drowning in decisions, your job isn't more tiers—it's fewer headaches.

What do you think? Yea or Nay?

Please drop your take below, and if you're a Skool creator, could you share your launch plan?

Let's turn potential tears into tiers of triumph.

P.S. My edited-down version is on Skooler, so far. Can you show me some love over there? Thank you.

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