A large portion of service-based companies, like fitness studios and sports facilities, seek profit through memberships. Locking a customer into a membership results in a highly sought after business asset: recurring revenue.
Recurring revenue is typically collected from members in monthly or annual intervals, and can be expected to continue into the future. Because it’s certain to be received, recurring revenue is stable and predictable. Consistent recurring revenue often signals long term success and sustained profitability.
While membership models are common and popular among businesses that offer long term contracts, a recurring revenue strategy can work for many business types. Check out this resource to see if memberships are a good fit for your business.
If you’re reading this guide, you may be curious about the benefits of gym memberships for your business. We looked at our customers’ data to draw some pretty striking conclusions about the influence of memberships on business success.
We found that:
- Membership-based businesses generated 89% more revenue than non-membership based businesses.
- While businesses with memberships have an average transaction amount of $22 less than businesses without memberships, they transact 3x more.
- Businesses who use memberships see 205% more transactions per month than businesses without memberships.
No matter your business size, fitness memberships help encourage your clients to commit to your business, and help you grow your bottom line. From how to structure your member benefits to how to price your memberships, use this guide to build a membership program that will drive recurring revenue for your business.