An enrollment fee covers the work of setting up a new member. You can waive it for a limited time as a promotion. Use it now and then, with a deadline. Track whether it brings people in.
What the enrollment fee covers
Records requests, the first long visit, setting up the account. Know your number before you waive it.
Promotions that work
- A waived enrollment fee with a firm end date.
- A waived fee for people who attend an open house. Hosting an open house.
- Annual payment at a small discount.
Promotions to avoid
- A lower monthly price for new members only.
- Promotions that never end.
- Discounts offered on the spot to individuals.
Measure it
Compare enrollments in promotion months with normal months. In a made-up example, a January promotion brings 30 members instead of the usual 18, and waives $100 each. Compare what the 12 extra members pay over a year with the $3,000 in waived fees.
In your books
Record enrollment fees in their own revenue account. When you waive one, don't record a fee and a discount unless your bookkeeper sets it up that way. Be consistent. Annual memberships and enrollment fees in your books.
What I'd do this week
- Write down what your enrollment fee covers.
- Pick one or two months a year for promotions.
- Set a firm end date for the next one.
Common questions
Should I have an enrollment fee at all?
An enrollment fee can cover setup and discourage joining only when sick. Either works if it's consistent.
Can I refund the fee if someone leaves early?
Put your refund policy in the membership terms and follow it.
Do promotions attract members who leave fast?
Check your own numbers. Track how long promotion members stay.
Want fees and discounts recorded right?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so you can see what each new member is worth and what it cost to get them. If that's what you need, apply to work with us.