What are the advantages and disadvantages of offering individual memberships vs. other membership plans?

Lionel Phillips, Justin Tamsett and Brad Wilkins discuss the disadvantages of offering individual memberships in this week's Ask an Industry Leader. 

Q: "What are the advantages and disadvantages of offering individual memberships vs. individual, couple, & family membership plans?"

A: "Go for the whole Family!" There is an age-old membership statistic which holds good to the present. A Male member will seldom introduce his wife or girlfriend to his Club. Whereas a Female member will not only discuss the merits of the Club with all & sundry, she will use all her powers to influence her spouse and / or boyfriend as well as other family members to join.  Your services will be advertised by the whole family rather than just one member. So it once again comes down to your SERVICES. The very same aspects that improve Retention and allow your members to market your products 24/7.  Advertising keeps your name in front of your members and prospects. Whilst the personal experiences and recommendations of your members should be bringing in the majority of your new members.

Lionel H. Phillips D.O.
Me & My Body Limited

A: The biggest advantage of individual membership will mean you have a greater yield. You can charge more people your dues so you will make more money. Also should one of the family wish to cancel, they are just cancelling their membership and not effecting the others. The negative is of course you have to ‘sell’ each person. I would suggest the first person has the standard dues and then add on family members can receive a slight discount.

Justin Tamsett
Owner, Active Management

A:  In my opinion, any advantages or disadvantages in regards to either type of offering is solely dependant on what business model you are operating.  Therefore, to truly answer your question, the focus needs to be directed towards understanding the type of business being operated (e.g. studio, big box, small box, mom and pop shop, municipality, medical, etc…); and the business’s strategic positioning within the market place (demographics) where it is located.  If you have a sound understanding of who you are trying to serve, then you will have a better idea on the expectations of the consumer and the pricing model they’d prefer.  Trying to determine the advantages or disadvantages any other way is like putting the cart before the horse.   

Brad Wilkins
Vice President & General Manager
Cooper Fitness Center

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This post is a part of our weekly Ask an Industry Leader series. We post a new question and answer every Monday morning. If you have a question you'd like our Industry Leaders to answer, submit your question today.