Renewal Timing Options

Option 1: On Month of Joining

This means renewal invoices go out every month

1. You spread out the cash flow and keep revenues flowing in every month

2. There is no peak administration burden, so the workload is balanced

3. This is more fiscally fair to members and you do not need to adjust their fee according to the month they joined

4. This gives staff the more time to focus on settling in new members

Option 2: Fixed Date / Calendar Year

This means all the renewal invoices go out on the same day/month every year

1. Useful if you have a small membership base

2. Gives you an annual injection of funds for capital investment

3. Easier for tracking

4. Gain economies of scale from mass invoicing

5. The disadvantage is it produces a workload peak

Consider

1. Members budgets and cash flow – is there a good time to send out the invoice?

2. What can your membership system cope with?

3. Can you offer a hybrid system, or is this to complex to manage? Is a quarterly scheme viable?

4. If the same staff are responsible for giving new members personal attention, when is it best to schedule this activity?

What do you think? Send in your comments to sue@suefroggatt.com and I will add them to this list.

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