Private Clubs Are Hot — But Can You Really Mass-Produce Luxury? These are four reasons why private clubs must foster quality over quantity.
By James Henderson Edited by Micah Zimmerman
Key Takeaways
- Exclusivity thrives on quality, not rapid expansion or mass appeal.
- Luxury clubs succeed by prioritizing unique experiences and vetted members.
- The best private clubs invite, they don’t just sell access.
Opinions expressed by Entrepreneur contributors are their own.
There's been a lot of buzz lately about the proliferation of private membership clubs. As the concept of "luxury" is over-deployed, it begs the question: Can exclusivity be mass-produced?
For me, the answer is a resounding no. I have built my career on selling expensive things to wealthy people and have seen firsthand, as CEO of Exclusive Resorts, that successful business practices in the private club sector thrive on a multi-pronged approach rooted in quality over quantity.
Fast growth, global presence and the network effect are attractive buzzwords — especially to investors — but the key to longevity is smart and steady versus rapid growth. As the private club sector continues to boom, those that will rise to the top have these four pillars in common.
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1. Smart real estate & rare experiences
Trying to be everywhere, all at once, is simply unsustainable. Instead, expanding in key markets where properties continually leverage value is key. Successful private clubs bring members closer to others who share their same passions and interests. The connective tissue is fine-detailing and experiences that only your brand can deliver, such as watching the Grand Prix de Monaco from a private yacht, rubbing elbows with Chef Thomas Keller in the kitchen of The French Laundry or playing PGA-rated courses at Pebble Beach.
The takeaway: a private club that's diverse in its own holdings yet also partners with like-minded, successful brands is poised for longevity. The key is to focus on real estate, not mass expansion. The goal is to create remarkable spaces in key markets where the property itself adds value to the business and gives members access to properties and gathering venues they couldn't enjoy in a similar fashion or of their own accord.
Related: Exclusivity Isn't the Only Marketing Strategy for Luxury Brands
2. Exclusive remains just that: Exclusive
If a company becomes hyper-focused on Wall Street growth, exclusivity can be quickly compromised, which means that vetting prospects can become less of a priority. The result? Too much, too quickly and then existing members become dissatisfied, which erodes the initial mission. Quality over quantity might be a business cliché, but for a private membership club, it's essential for long-term growth. I've seen this time and again across various industries.
When the quality suffers, the product and service feel contrived, and the very mindset of the member or client base is jeopardized, the business becomes distressed, both in reputation and in sales. In short, exclusivity is key. Remaining supremely focused on quality over quantity ensures a level of access and personalized service that remains uncompromised.
And as with all truly exclusive things, the best way to do so is by referral from an existing member. When a high percentage of new members join through personal referrals, it keeps the community tight-knit with like-minded people, the experiences exceptional and the guest list and private network just right.
3. Smart business model and an intuitive approach
In my experience, the private clubs that are less reliant on one revenue source are the ones that succeed in the long run. How so? Through one-of-a-kind experiences, only-with-the-club events, stellar partners and various real estate and hotel offerings. While a private club should always evolve, it needs to remain consistent and rooted in the original vision. Keep the focus on real estate and bespoke experiences, not mass expansion.
Additionally, members shouldn't ever have to trade privacy for convenience. If it is a private travel club, every time a member travels, every detail should be handled. Grocery shopping? Done before they arrive. Housekeeping? Flawless. Need a car, a private chef or a yoga instructor? It's arranged. The answer is always yes. Whether it's a last-minute massage or a private guide for an epic outing, a successful private club delivers the kind of service that feels less like hospitality and more like intuition.
These days, discerning travelers are constantly searching for fewer distractions and more time — time to recharge, time to connect with those they care for most, and time to escape the hustle of everyday life. The more successful at anticipating needs, the more successful the private club.
Related: Inside the Exclusive Private Club Devoted to Food, Wine and the Arts
4. Every location and experience is unique, as are the members
The private clubs that remain the most desirable — and the most discerning — forgo any copycat models. Vetted locations celebrate a unique sense of place. Each destination or experience reflects a place where members genuinely want to spend time and connect with each other. Successful private clubs' membership rosters read like a who's who of power and influence — Fortune 500 executives, visionary entrepreneurs, Michelin-starred chefs and world-renowned artists.
Equally important, private clubs are designed for those wanting to spend their time wisely. Plus, true luxury isn't just about where you go — it's about who you experience it with. But here's the thing: it's not a club you simply buy into. It's one you're invited into. This must remain key; otherwise, "exclusivity" is simply a ploy that you'll see right through.
