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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.
The association sector is in the middle of a leadership handover.
Across Australia and New Zealand, CEOs and Executive Directors are moving on. Some are retiring. Some have gone to larger organisations.
Some have left because the relationship with their Board ran out of puff. The reasons vary, but the movement is noticeable, and Boards are
appointing replacements.
The encouraging part is the calibre of the people coming in. Many are genuinely well suited to the job — capable executives with strong
records behind them. A good number are stepping into an association CEO role for the first time.
Most associations can provide a long list of membership benefits. They may include professional development, advocacy, networking, industry information, events, resources, accreditation, discounts and access to specialist advice. However, a list of benefits does not necessarily explain why someone makes the decision to join.
While every Board is different, the same governance issues appear time and again. One of the most common is allowing one person’s behaviour
to dominate the Board table.
Almost every Board has experienced it at some point. One director who seems to consume more time and energy than everyone else combined.
How we help membership based, not-for-profit associations now and into the future.