By Anthony Hilb

Sometimes making your business exclusive is the right move. We’ve been seeing many membership websites launch over the years. Lumosity.com is a basic example. Colleges are an even better example. By only allowing a select group of people into their schools, more people want to attend. They’re exclusive. Getting into prestigious colleges often shows credibility.

I don’t believe colleges are the only way to learn, but even certain professions only allow members. Doctors, lawyers, professors, and engineers are all required to have certain degrees and pass specific tests. Fortunately, many business owners don’t have to worry about those degrees and tests. Yet they must be lifelong learners. In order to be successful, many of the most successful business owners are required to spend the same amount of time, if not more, learning as the top professionals. Becoming a successful business owner is often a members only situation too.

Making your business a members only organization shows that you have standards. This doesn’t always work when you’re selling products. But think about Nordstrom. Their prices are high and they sell quality products. It’s a membership business because many people simply don’t have the money to buy from them. So those people go to Walmart and buy a suit for $60 instead of the suit that costs $1,000 at Nordstrom. Nordstrom has to sell a much smaller quantity to compete with those who race to the bottom with their prices.

The people who buy all of their clothes directly from Nordstrom are in the rich club or perceived to be in the rich club. Buying from them is a status symbol. Once you set higher standards and focus on high quality, you can make your products and services a members only club too.