By Nick Koerbin
Thought about an application fee for your new members?
Last week, Virgin Australia made a significant announcement that will impact both new applicants and current members of their Virgin
Australia Lounge.
Effective July 1, 2024, a new membership application fee of $99.00 will be implemented. This fee will apply to individuals applying to join
the lounge or to members who allow their memberships to lapse for over a month before renewing.
For frequent travellers like myself, having access to a comfortable space to unwind or complete tasks before boarding a flight is undeniably
advantageous.
This recent notification prompted me to ponder the significance of the membership joining and renewal process not only with airline lounges
but also for all membership-based associations.
Considering the tangible benefits of association memberships, it may be worthwhile to explore the inclusion of an application fee for new
members and those dreadfully overdue to renew their membership.
Here are a couple of reasons why implementing an application fee could be beneficial:
💡 Cost Offsetting: Processing new memberships involves inherent costs, varying depending on membership criteria. These upfront processing
costs can be offset by introducing an application fee, ensuring the association can efficiently manage new member enrollments.
💡 Building Long-Term Commitment: The application fee can foster a more substantial, committed membership base. By imposing a fee for new
applicants, the association can discourage transient memberships and reduce membership turnover, a common challenge faced by associations
that do not have a joining fee. This can lead to a more engaged and dedicated membership, enhancing the association's effectiveness.
🤔 The introduction of an application fee may stir some discussion among members. However, its potential to streamline the onboarding
process, cover administrative costs, and foster sustained membership commitment presents a strong argument for its implementation within
membership associations.
For over seven years during the 1990s, I was involved with the Total Quality Management Institute, formed by leaders of some of Australia's major corporations.
There are many challenges that associations face when generating membership growth, particularly when competing with organisations providing services similar to your potential membership base. Here are some tips worth considering that have worked for our clients.
Most Associations and NFP organisations rely on their members to govern their organisation. Many appointed to the Board have limited knowledge or training, so high-performing associations ensure their new Board members are fully inducted before attending their first Board meeting.
