Application Fees for New Members

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.