Member Lifetime Value (MLV) is the measure of the monetary value of members based on the projected length of membership.

Calculation: Net member-paid revenue ÷ # of members x AMT = MLV

To get Net member-paid revenue you need to total all dues and non-dues revenue generated by your members. To find this, use the Payment/Receipts by Member report and filter to Active Member Status for the specific date range, and do not filter out any items (including all dues and non-dues).

1. Click Billing in the left-hand navigation panel.

2. Click the Reports tab.

3. In the Sales section, click Payment/Receipts by Member.

4. Select Any in the Fee Item Type dropdown.

5. Enter the desired date range in the Payment Date Between/And text boxes.
6. Select Active from the Member Status drop-down.
7. Click View Report.

The Grand Total displayed on the final page of the report is the member-paid revenue. To get the Net-member paid revenue, you need to subtract your operating costs from the Grand Total total. You can get your operating costs from your accountant. 

NOTE: It's critical to subtract operating costs from revenue to establish net member-generated revenue when calculating MLV.

The End Count can be obtained from the Retention Rate calculation.

AMT can be obtained from the Average Membership Tenure (AMT).

Example: In 2017, 3,000 total members collectively invested $550,000 in dues and contributed $325,000 in non-dues revenue. The operating costs were $650,000 and the organization’s AMT (average membership tenure) was 17 years.

1. $550,000 + $325,000 = $875,000 (dues revenue plus member-generated non-dues revenue)
2. $875,000 – $650,000 = $225,000 (total member-generated revenue minus total operating costs)
3. $225,000 ÷ 3,000 = $75 (net member-generated revenue divided by the number of members)
4. $75 x 17 = $1,275 (average member contributed revenue x AMT)

MEMBER LIFETIME VALUE = $1,275