Should I let coworking members use our mailing address for business purposes?

TLDR: Yes, it can be a significant revenue stream so definitely monetize it.

“Can I use the address for business purposes?”

I get this question more than any other when touring new potential members. The answer is absolutely, yes… If they’re willing to pay for it. A physical address that isn’t a PO Box is one of your biggest assets and depending on your location you might just be sitting on a small goldmine.

Is this also about Virtual address use? I’m gonna cover that in a separate post. It’s a different beast then just providing mailboxes to your members.

Why you should offer it?

Additional revenue, period. It’s an easy way to incrementally add to your bottom line. People need it. Here’s why.

Every business needs an address and often people are hesitant to use their home address. The concern for many is that their home address gets published on a site somewhere. Privacy and security are definitely top of mind and you have the means to address those concerns.

You also give them a physical address that likely has a business like “Street View” in Google Maps that provides a bit of legitimacy to a new and/or up and coming business. For some service based industries if a potential client street viewed a residential home when searching for your services you run the risk of looking small or amateur. Again, you provide the tools to make a business look next level.

What else? SEO (search engine optimization) value or how you display in google search results. Many service providers want a close to city center address that will give them an advantage when ranking locally. Your base membership, plus the business address add-on may be a marketing cost that quite a few companies would be willing to pay for. Get it.

How can you price it?

Hygge is on the low end. We currently price address & mailbox use at $15 a month for flex and dedicated desk members. We include address use in all dedicated office space. I’ve seen as high as $65 a month just for basic business address use. Our flex is $124 a month. The additional $15 feels reasonable alongside our pricing structure.

Find something that feels like a no brainer alongside your membership. You can always raise the prices so I might start lower and go up from there. Coming down is hard, especially once a couple people have opted in.

How do we implement it?

I consider things like business address use and lockers like impulse purchases on checkout counter at a store. We send new members the sign up link from smpl and it brings them directly to the section for membership add-ons. If they choose the add-on we provide specific instructions on receiving and picking up mail.

Once the mail gets to hygge it becomes one of the least structured things we’ve implemented. It’s nothing fancy. Mail comes in. I sort it myself on a daily basis, deliver mail to offices and sort the rest of the mail into marked cubbies. Member’s grab it as they stop in. If I see mail piling up or something that seems particularly urgent i’ll send that member a slack message.

I hope as we plan new bigger locations that I can get one of those big mailboxes with individual locking sections like apartment complexes have. This basically puts the work on the mailman and member.

*** Full disclosure. I’ve let a couple of these slip through. In the early days members just assumed they could use the address and due to our lack of structure and general desire to grow we let it fly. We’ve grandfathered those members in. There’s a good $300/month left on the table at hygge. It’s nothing to sneeze at. Hold strong and if you see mail from members that haven’t paid for the add-on i’d be quick to address it.

In Closing

These type of membership add-ons are the cherry on top, the icing on the cake, the gravy. It’s just added revenue and if you make it super simple for them to take advantage of it I’d also guarantee a high attach rate.

Get after it.

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