The Power of the Velvet Rope
We are united in our need to feel unique.
People have an intrinsic need to congregate and a need to separate. Even the most extreme extrovert needs time to recharge and vice versa. On one hand we need to make connections, talk, and connect. On the other hand we must have a strong sense of self. Something that drives us to explore ourselves deeper and experience our own unfiltered singularity.
The paradoxical twist is that we can only fulfill these needs with each other and against one another.
The Velvet Rope
The velvet rope was invented by George and Louise Boldt in 1894 in New York City when they opened up their first Waldorf hotel. It was later perfected by founders Steve Rubell and Ian Schrager of the legendary Studio 54. Studio 54 was a broadway theatre turned nightclub in New York City in 1977.
Studio 54 is noteworthy because it took the use of the basic human paradox of being united in our need to feel unique to the next level. They added an unexpected (some might say devilish) twist: unpredictability. It didn’t matter who you were, you could be an A-list celebrity and still not make the cut. This is part of what made Studio 54 so utterly irresistible to people.
You couldn’t buy or charm your way into this place, your entry depended on how the bouncer felt the night you showed up (Steve Rubell, co-founder). Even if you had gotten in the night before, you were still vulnerable to being denied. You truly never knew what to expect here. This use of the velvet rope set the precedent for many clubs and brands to come.
When Studio 54 cracked this code to being irresistible, it triggered a wave of exclusive marketing. You were either belonging inside the exclusive club or you were longing to be inside with the few who made the cut. This is how luxury brands operate, they are beyond our control and we still show up with all of our hopes on the line.
The Petroleum Club
Every city has a secret and Dallas has one worth noting. The Petroleum Club was founded in 1934 from a fraternity of prominent oil businessmen into one of the finest private city clubs in the nation. It’s one of those places where you wish you could be a fly on the wall.
Deals have been made here, fortunes built and lost, and you probably have more power by mere association with the club. It sits on the 39th and 40th floors of Chase tower in downtown Dallas with large chandeliers hanging from the ceiling that sway as you discuss which continent you will conquer next over some of the best food.
The club has featured incredible guests such as Boone Pickens, H.L. Hunt, Clint Murchison Sr., Algur Meadows, and more. The idea started out between 3 prominent oil businessmen to form a committee of 100 oilmen with an initiation fee of $100 per person. Since then it has taken off with overbooked events, waiting lists, and multiple locations. To get membership into the club requires a waiting on a list for 4–5 years and then the club members will collectively review your profile and decide if you belong.
So how does this club hold the interest of so many people and why do the seemingly infinite hurdles attract people even more? This barrier, this velvet rope, makes us want to look behind, get inside, and try it out. This makes us feel as if a bit of this brand is out of reach even though it’s right in the heart of Dallas.
They strategically control their supply of club memberships to foster demand. This is an ancient, established concept and always was and will be so. It’s controlling the demand with seasonal events, memberships, and location combined with pricing some consumers out to give the others a way to feel like they belong. There are thousands of examples across mass-market, high-consumer brands like Nespresso to exclusive, secretive clubs like the Petroleum Club.
Traditional mass marketing is mostly about serving needs. Luxury brands are in the business of creating and selling desire. Their sole job is to keep people wanting and consuming while we’re having way beyond what we need.
These brands rank high above their competition making us want to splurge and indulge.
No matter what product or service you seek to make it will always need a certain level of perceived exclusivity (only you can decide if real exclusivity is there or not). The more ubiquity your product or service has, the more challenging it is to offer this perceived exclusivity.
It’s about balancing your proximity and reach at every touchpoint with your customers. Each action and choice, leaving the customer wondering if they’ll pass through the velvet rope or not.
It’s what makes the game of life so exciting. There is no thrill of victory without the agony of defeat. It’s what keeps gamers coming back to video games for virtual loot that’s hard to access all the way to high-class Gucci shoppers coming back for the next exclusive clothing line.
How will you use the velvet rope concept to move your personal brand? How will the velvet rope help you market and promote your own business and brand? Look around you, it’s everywhere.
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