
The Business of Belonging
11 minHow to Make Community Your Competitive Advantage
Introduction
Narrator: In the early 1980s, long before social media dominated our lives, a communications specialist at Apple named Ellen Petry Leanse was tasked with handling customer mail. As Apple prepared to launch the Macintosh, a wave of frustration was building among loyal Apple II users who felt abandoned. While sifting through letters, Leanse noticed something strange: cryptic codes embedded in the text. She soon realized these were access codes for Bulletin Board Systems, or BBS groups, the digital campfires of their time. Apple’s most passionate users weren’t waiting for the company to connect with them; they were already building communities on their own. Leanse fought to get Apple to join the conversation, eventually launching the Apple User Group Connection. It was a revolutionary act that humanized the company and proved a fundamental truth: community isn't a new invention, but a timeless human need that businesses are only now beginning to understand.
This powerful dynamic is the central focus of David Spinks's book, The Business of Belonging. It serves as a definitive guide for any organization looking to move beyond transactional relationships and build something far more durable: a true community that becomes its greatest competitive advantage.
Community is the Uncopyable Competitive Advantage
Key Insight 1
Narrator: In a world where features can be replicated overnight and marketing messages are easily ignored, Spinks argues that a thriving community is the one thing competitors cannot copy. It’s a strategic moat built not from code or capital, but from people, relationships, and shared identity. While a business can sell a product, a community creates a sense of belonging that makes customers want to stay.
Consider the case of Zappos. In the early days of e-commerce, CEO Tony Hsieh made a radical decision. He chose to take the money that would have been spent on advertising and invest it directly into the customer experience. Zappos empowered its support team to do whatever it took to make customers happy, creating legendary stories of service that spread through word-of-mouth. They weren't just selling shoes; they were building a community of delighted customers who became their most effective marketing team. This customer-centric approach created a level of loyalty that competitors found impossible to replicate. Similarly, Salesforce built its Trailblazer community, a network of millions of users who support each other, share best practices, and even help drive product innovation. This community doesn't just reduce support costs; it creates a powerful switching cost. Leaving Salesforce means leaving behind a vital professional network, a loss that a competitor’s discount can rarely overcome.
The SPACES Model Translates Belonging into Business Value
Key Insight 2
Narrator: For decades, community was seen as a "nice-to-have" initiative, often disconnected from core business objectives. Spinks demolishes this misconception by introducing the SPACES model, a framework that directly links community efforts to measurable business outcomes. The model outlines six key areas where community creates value: Support, Product, Acquisition, Contribution, Engagement, and Success.
For example, a community can drastically reduce Support costs when members answer each other's questions. It can fuel Product innovation by providing a direct line to user feedback. It drives Acquisition when ambassadors and advocates spread the word, as seen with Lululemon's ambassador program. It facilitates Contribution when members create content or help onboard new users, like the instructor community at Udemy. It deepens Engagement and retention, which ultimately leads to greater customer Success.
The story of Ironclad, a fast-growing startup, provides a powerful example of community driving revenue. The company began hosting intimate dinners for key prospects, allowing them to connect directly with loyal customers in a relaxed, communal setting. Instead of a hard sales pitch, prospects heard authentic stories from happy users. This community-driven approach built immense trust and authority, directly contributing to over eight million dollars in annual recurring revenue. The SPACES model proves that community isn't just about warm feelings; it's a powerful engine for growth.
The Social Identity Cycle Turns Members into Superfans
Key Insight 3
Narrator: A group of customers is not a community. A true community emerges when individuals develop a shared social identity. Spinks explains this transformation through the Social Identity Cycle, a three-stage loop of Identification, Participation, and Validation.
To illustrate, he tells the story of a fictional salesperson named Cam who discovers the Sales Hacker community. First, Cam Identifies with the group; she sees they are sales professionals focused on modern techniques, just like her. This initial connection prompts her to Participate by signing up for the newsletter and joining the online forum. When she is welcomed by other members and her first questions are answered, she receives Validation. This positive feedback reinforces her identity as a "Sales Hacker," encouraging her to participate more deeply by answering others' questions and attending a local event. Each loop through the cycle strengthens her investment, transforming her from a passive observer into a chapter leader who proudly wears the brand's merchandise. This cycle is the psychological engine of community, turning casual interest into passionate advocacy.
The Commitment Curve Maps the Journey from Lurker to Leader
Key Insight 4
Narrator: Not all community members participate in the same way. To effectively manage a community, Spinks introduces the Commitment Curve, a model that maps the different levels of member involvement. The journey typically begins with Consumption, where the vast majority of members simply observe and read content. The next level is Contribution, where members start to engage by commenting or sharing. From there, a smaller group moves to Creation, actively producing content like blog posts or tutorials. Finally, a select few reach Leadership, taking on roles like moderating forums or organizing events.
The key to a healthy community is to intentionally guide members up this curve. A compelling onboarding experience is the critical first step. In one example, a SaaS company called InnovateSoft designed a structured onboarding for new user John. Upon joining, he received a personalized welcome video, was prompted to introduce himself, and was guided through a welcome challenge with points and badges. This experience didn't just teach him how to use the platform; it immediately moved him from passive consumption to active contribution. By providing clear pathways for increased involvement and recognizing contributions at every level, a business can nurture a sustainable ecosystem of engagement, ensuring a steady flow of future leaders.
The 7Ps Framework is the Blueprint for Building Engaging Spaces
Key Insight 5
Narrator: Strategy and psychology are essential, but a community needs a place to gather. Spinks provides a tactical blueprint for designing these spaces and experiences with the 7Ps framework: People, Purpose, Place, Participation, Policy, Promotion, and Performance. This framework applies to everything from an online forum to a global conference.
The story of Honeybook's Rising Tide Society and their "Tuesdays Together" meetups perfectly illustrates the 7Ps in action. The People were creative entrepreneurs. The Purpose was to connect and learn in a supportive environment, guided by the value of "community over competition." The Place was a local coffee shop, an accessible and informal setting. The Participation was structured, with a specific discussion topic each month. The Policy was a set of shared values that ensured a positive and uplifting tone. Promotion was handled by local leaders, and Performance was measured by the positive feedback and growth of the attendees. By thoughtfully considering each of the 7Ps, Rising Tide created a replicable, scalable, and deeply meaningful experience that strengthened their community and their brand. This proves that great community experiences don't happen by accident; they are intentionally designed.
Conclusion
Narrator: The single most important takeaway from The Business of Belonging is that building a community is not about assembling an audience or managing a platform; it is about distributing power. True community requires a fundamental shift from a mindset of control to one of empowerment, where a business moves from being the hero of the story to being the host of the party. It’s about creating a space where people feel seen, valued, and connected, and then trusting them to create value for each other.
The ultimate challenge this book presents is one of authenticity. It’s easy to launch a forum or a Facebook group and call it a community, but it is far harder to build a culture of genuine belonging. The question it leaves us with is this: Is your organization willing to do the real work of putting people first, even when it’s not the most immediately profitable path? Because in the long run, the businesses that build a true sense of belonging will be the ones that last.