GOLDEN AGE

Friend of Medium — This is How We Get Rich

An in-depth analysis of Medium’s new membership tier

Anyone who said they became a Medium member to support writers was lying. The standard membership only serves the interests of the subscribers, so that they can read everything and earn money with their writings. It lacked an actual supporter level. Until now.

Friend of Medium — Future of a new membership level

No more lies. We began a new era on November 27th, 2023 with the announcement of Alex Benzer (Director, Product @ Medium).

The new Medium membership tier finally gives space to honesty, and generosity, strengthens the community, and makes us richer.

Those who give more get more back

It’s not primarily about money. In this article, I shed light on the future of the Medium ecosystem, where I see a new perspective. Let’s dig deep!

The standard Medium membership becomes more valuable

Why? Because it will always have the most subscribers, and what’s more, their number will grow even faster from now on. This is the key.

The psychology of pricing

In marketing, pricing is a critical area and subject to serious consideration. The principle is simple. Offer a high-priced service and because of the contrast, more people will choose the cheaper one.

You can make the choice easier with rational and irrational arguments:

#1 — Rational reasons

The value of the service (quantity and quality) should be very favorable for the cheaper price. The sense of value is increased by comparing it with a higher-priced option. In the case of Medium, Friend means a 3x price difference, but does not come with more services.

From a marketing point of view, the biggest result is when the price comparison makes it easy to move from the free tier to the paid tier.

In the November roundup, Medium Staff published the number of newly registered free accounts in that month: 1,519,790 (This number surprised even them, Harris Sockel pointed out in a comment.)

The extra profit will not be brought to Medium by relatively fewer new Friends but by many more new Members. It’s simple math, specifically dollars.

The new subscription page looks like this:

#2 — Irrational reasons

“Most popular” — You’ve seen this inscription on the price sheets of many websites, haven’t you? What does this tell you? The feeling of “the crowd can’t be wrong” reinforces the company’s preferred choice. (See principle of social proof.)

Why does Medium not use this optical trick? Because the two levels cannot be rationally compared. A cheaper subscription means you get the benefits, and a more expensive subscription means you are generous.

Receiving vs. Giving Star vs. Heart

The separation of the two types of membership levels is evident even at the bottom of the About page:

You don’t have to worry about the old membership date disappearing. I suppose this is an increasingly important argument as time goes on. And if you later withdraw from the Friend level, your standard membership will continue.

There will also be prestige subscribers to the Friend membership who just want to enjoy the benefit of the heart badge distinction. For them, three times the price is insignificant. Their channeling also benefits our community.

However, those who switch to the Friend level do so because they can express their generosity towards the authors they like and the Medium ecosystem. I will explain later why supporting the ecosystem is most important.

No doubt putting more money in the right place increases quality. Before I show my calculation, let me write about an extended effect.

Friend of Medium membership has a dimension that goes beyond self-interest.

The effect multiplier heart badge

It’s good for the ego. Okay, that’s clear. However, it is much more effective if an author sees your badge. Your heartfelt reaction to this article as a Friend shows you are a supporter.

I don’t just mean that the writers get 4x more money from you, but also that your feedback (claps, highlights, comments, etc.) makes them feel your appreciation. Above all, writers need motivation. Do you agree?

Consequently, the sense of connection may be more important than money. Remember: receiving versus giving.

Congratulations, Medium Design Team! You have created the most expressive badge, the heart radiating golden light.

Medium Partner Program: 4x more $ from Friends

How is the revenue split between the writers and the company? The most popular comment on the announcement addresses this question.

Let’s be honest: if we knew this exactly, what would change? Nothing. At most, we could read a few loud and unnecessary articles about it, and the authors of the articles would pocket a few dollars for it.

A response to those who are curious about Medium’s finances:

“We do not currently share that breakdown, but we can confirm that a 4x larger amount of a Friend Tier membership goes towards the writers you read and engage with, compared to a standard Medium membership.” — Amy Widdowson (Vice President of Communications @ Medium)

Let’s count

Two factors are certain:

• membership fee ($5 or $15 per month)
• 4x multiplier (Friend level)

Optimistic assumption:

If the writers get $3 out of $5, then with the 4x multiplier they get $12 out of $15.

Then Medium keeps $2 or $3, which is a 1.5x increase in revenue. This is an acceptable profit multiplier, assuming that the company’s operating costs do not increase due to the new tier. However, the increase in total income is still expected from the standard membership, as I indicated above.

Minimalist assumption:

If writers get only $2 out of $5, then they get $8 out of $15.

Thus, Medium’s revenue is $3 or $7, which is a 2.3x difference.

Which calculation do you think is closer to reality? (Please highlight your choice!)

Win — Win — Win

As the number of subscribers grows, more and more money will be distributed.

This doesn’t mean that every writer is guaranteed to earn more. The good ones earn more, and the even better ones even more. The differences between writers and writers will be more contrasting.

In summary, the financial strengthening of the ecosystem improves the quality of content and relationships.

Everyone wins: Medium, readers, and writers.

Speculation

The company’s profitability increases. The number of new users and visits as well. This could pave the way for another capital raising in the near future.

The past decade has been about slow, predictable, and manageable growth. I hope that the owners’ vision does not include an IPO of Medium, because the pressure to grow that comes with it could drive away the spirit of our mission.

Remember the evolution of social media: in the beginning it was social, now it is primarily media. We know exactly that this is the most powerful tool for exercising power.

I hope Medium remains our medium.

Writer’s hysteria

I’ve been here since the beginning. After launching the Medium Partner Program, I saw quite a few hysterical outbursts from popular writers. Has traffic fallen, is there less money? Everyone was at fault, except that particular writer.

Due to their arrogance, they did not recognize the reality, according to which the money flowing into the system did not decrease, it was just regrouped. Other authors more deserved the money “taken” from them. It’s a constant flow.

There was a writer who left Medium in anger, came back later, and then repeated this cycle a couple of times. They were all selfishly focused only on what Medium could give them. There was never any discussion of what they could give to the Medium community to get more in return.

A relationship is built not by what you take out of it, but by what you put into it.

One who has no heart is not heartless

So, we can choose between two paid memberships:

• $5/month ($50/year)
• $15/month ($150/year)

Two aspects:

#1 — External: Financial

For most people in the world, even $5 a month is a significant amount. However, many of them subscribe, which we must appreciate.

(According to Medium’s statistics, India is the country that generates the second largest traffic. I hope that the Medium Partner Program will be launched in India as soon as possible so that they can also earn money. That way there will be even more subscribers there.)

Even in rich countries, the triple subscription fee can be high for many.

#2 — Internal: Attitude

Let’s accept everyone’s choice without judgment. Yes, even the author who does not pay the maximum, although we would expect otherwise based on his headlines: “How do you earn six figures…?”

Accept your own choice as well. Don’t feel guilty about not upgrading. If you think that’s what your followers expect, know that it’s just your delusion.

Friend of Medium and Boost: Is there a connection between them?

I admit, I also secretly thought that as a Friend I might enjoy some kind of direct advantage in the distribution of my writings. Here is the clarifying answer in a comment:

“As the person running the Boost Nomination Pilot, I can answer this one: No, being in Friend Tier will not have any impact on how your stories are distributed. Having the cute lil Friend Tier badge might catch a reader’s eye when they see your stories, but being in Friend Tier does NOT impact how your stories are distributed on Medium” — Ariel Meadow Stallings (Product Manager @ Medium)

Friend Link is awesome

In the standard membership, you can share your own paywalled story with anyone who does not have a Medium membership. Just send the Friend Link of the article.

With a Friend of Medium membership, you can already share other authors’ paywall stories. In this case, the author will also get paid after the free readings through your membership.

Idea for the pleasure of non-members

A significant part of Medium’s traffic comes from external sources, mainly from the Google search engine. Because of these visitors, it is worth placing a Friend Link at the beginning of the article, but within 150 words at the latest, so non-member visitors can click on it to read the entire article without registering.

This differentiated reader experience gives you an extra chance to gain a new follower. Because if it was worth reading the article, then maybe it’s worth following the author.

Curious about other insider ideas? You know where to find the follow button.

The Medium Ecosystem

As a communication trainer, I realized already in the 90s that communication is not just a one-way flow of information, but community building. This is the strength of the Medium.

Facebook, Instagram, YouTube, TikTok, and other platforms stimulate their users primarily visually. This is the easier way. In contrast, Medium operates on a more advanced level of understanding. Understanding and processing written content presupposes higher intelligence and further develops it.

Just compare the comment fields on Facebook and Medium. The difference is amazing. Seeing the history of the mentioned platforms, I say that a bright future awaits us on Medium.

Support: Writers or Ecosystem

Whichever membership level you choose, you support the ecosystem that sustains writers and their readers. Targeted support also works (see Substack), but the Medium model provides greater stability in the long term.

According to my calculations, the distribution of the received money will help the rise of the novice but promising talents. Targeted support, on the other hand, disproportionately strengthens already successful authors to the disadvantage of beginners.

It gives you much more motivation to jump from $0 to $100 per month than from $10,000 to $15,000. Therefore, Medium is a springboard for many unknown talents.

Medium’s promise: There’s more to come

I have two suggestions. Which idea do you think is the most useful? Highlight your choice and let us see.

Creating publications is a privilege of the Friend of Medium level (1st sorry!)

This is how the owner of a publication expresses the maximum appreciation for good stories and Medium. The synergy between publications and writers is evident. Obtaining the right to create a publication is related to the spirit of the Friend of Medium membership.

I would also extend this condition to the editors of the publications to increase the quality. (2nd sorry!)

Detailed statistics

• Critical: keywords from search engine traffic
• Views from Medium stories, publications, lists, and other internal sources
• Our most loyal readers
• Shall I continue? I have a long list…

A Google Analytics level is not necessary, but we need much more than the current poor statistics. Why? Because we want to get to know our readers even better so that we can serve them better. This is how Medium’s mission is fulfilled and relationships are strengthened.

Attention! More than 60% of the external traffic of medium.com comes from the Google search engine (November 2023 data, semrush.com). What are they searching for? We have no idea. This ignorance is unsustainable. There is a cliché in the business world: what we measure, starts to improve.

The data is available because the Google Analytics Code is embedded. I accept that using our own code is not an option, because the statistics must remain uniform at the system level.

Tony, please consider it as soon as possible. Call a professional developer who will do it by tomorrow morning. Okay, tomorrow night will be fine. Whenever it is completed, our gratitude will be immeasurable. Thanks in advance.

Differentiate between the three registration levels:

• Free: No stats
• Member: Basic stats (current)
• Friend: Extended stats

The “sacredness” of the Friend tier

During my analysis, I thought about whether it is worth expanding the Friend level. Extra benefits are for self-interest, not generosity.

In this way, it would be comparable to the standard membership, because the line between “giving” and “receiving” is blurred. For me, it would be worth upgrading just for the more detailed statistics.

So, it is worth considering that the Friend level should only be expanded with the possibilities of giving. Let’s say we can clap more.

And all possible benefits in the future should be integrated into the standard membership. This would further strengthen the effect of the incomparability discussed above, and make entry into the first paid tier more attractive.

This is just thinking out loud on my part. What do you think about this “sacredness”? Let’s talk about it in the comment section.

That’s why we’ll be rich

Our community is a network of countless personal connections. Since a relationship is built by what you put into it, the person who is at a higher level of consciousness is responsible for the development of the relationship, and it is not a matter of choice.

With the Friend of Medium membership, more positive qualities are added to our network of connections than before. The reactions already reflect this positivity.

Reasons for our bright future:

• Slow, stable, predictable growth
• Ecosystem financing business model
• Two different membership levels
• Medium ethics: copyright, no ads, no spam, no AI
• Pure reading experience
• Writers of high intelligence
• Emerging talents
• Directness and availability of Medium staff
• Love (= supportive and uplifting community)

Our success is based on our good relationship with each other. Let’s take care of it!

Please share your opinion in a comment. I’ll respond, clap open-handed, and check your profile.

Thanks for the friendly connection!