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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.
One of the main revenue streams for many associations is their annual or biannual conference. Anyone who has planned one knows that securing sponsorship is often the most time-consuming and frustrating task.
Hiring a consultant for a specific task is fundamentally different from engaging one to drive organisational transformation.
Boards often recognise the need for change when membership stagnates, governance weakens, strategy stalls, or momentum declines. Engaging a
consultant at this point is a sound decision.
We’re seeing a growing trend. More and more groups are reaching out to start new associations.
In most cases, the reason is the same: "Our current association isn’t delivering."
That may well be true. Starting a new association is a serious commitment, not just a reaction. Let me be clear:
How we help membership based, not-for-profit associations now and into the future.
