The top bloggers are doing it right at their own blog, others are using social networking – but still many companies and marketers haven?t created a community around their business. If your business relies on other sites linking to you or good search engine rankings, they can pull the plug and your business can be dead instantly.

Working around this problem is simply, and many marketers have already found that the average retention ratio and Lifetime Customer Value has increased enormously. Involving your customers into a community makes them feel special, ?in charge? and more appreciated, which leads to customers buying more and more often.

Following step-by-step tips on how to set this kind of community up have been made after studying Dan Kennedy, who has over 5,000 paying newsletter receivers at all time. Recently he sold a big chunk of his business for an 8-figure amount.

Dan Kennedy based his whole business around a paid newsletter. His customers are referred to as Inner Circle Members, a status that comes with the newsletter and many other benefits. He clearly explains them at his website and in a ?Welcome? letter sent to all new subscribers.

Step 1: Give Your Community a Special Name

Use a name to refer to all members at one time, and use if often enough so that both members as well as prospects both know about it and the benefits of being part of the community. You can easily increase the perceived value of reading a blog, subscribing to a (free or paid) newsletter or buying a product by giving these people a special name.

Potential names include Inner Circle, Mastermind, Exclusive, Best Buyers Only, Preferred or even Friends Of.

Step 2: Make People Crave To Get In

An often seen marketing technique to increasing the perceived value is setting up requirements. Make sure not everyone can become a member, so that it stays special. But be sure to make it easy enough for your ?ideal? customer to become a part of it.

Another technique is to give the marketplace a glimpse of what?s inside, or what your customers may expect. Having reviews and even testimonials about the special treatment they receive greatly increases your chance to convert prospects into customers.

Step 3: Give a Place To Contribute

A community is not a one-way communication tool. You are the leader and give people the tools to communicate and make sure the value is of a constant high level. But the real reason people want to be part of a community is that they can talk and cooperate with others.

They can use a community to increase their own status and reputation, gain more clients or form joint ventures. Some want to show off their work or feel obligated to help the less successful people.

Give them the tools, as simple as an invitation to join a discussion on a forum. You may also want to feature your best customers on your blog or in your newsletter, so that other readers see the true benefits of being active within the community.

Step 4: Keep Them, Lock Them In And Form Them Into Fans

The true, exponential growth starts when others are talking about you outside of your ?circle of influence?. Nurture your community members, over-deliver to them and make sure they perceive what you give to them as high value. (If you think you?re over-delivering to your customers, ask them to check if they agree – you?ll be surprised about the answers)

Simply features like contests, link-bait and other incentives for your community are generally enough to get members to promote you to their friends. You have to actively pursue this though, since most people won?t think about this on their own.

Extra Tip: If you don?t have at least some activity going on, people may think you?re dull (losing out on social proof). Create it yourself by posting comments and such on your own site, under a nickname.

That?s have you can easily create a community on your blog or thru your newsletter. Be sure to also check my next article entitled ?How To Make More Money From Your Community?.