Originally Posted by Joey Scafidi
Figuring out my billing situation now. How do you guys do it if someone joins in the middle of the month? Do you prorate and then start billing on the 1st, or do you start billing whenever they join??
Are there pros and cons to each? It seems like billing everyone on the 1st would be easier but if it's set up automatically then it shouldn't matter, right?
We allow our members to pick either the 1st or 15th of the month. So if thye join on the 4th, they would probably elect the 1st of next month. If thye join the 20th, they can pick the 15th of next month? Follow? Do they possibly get a few days of free training? Sure. But it's a method that we employed and works for us. We then schedule our payroll for the 8th and 23rd. Allows for the draft to hit, cycle through the banks and make sure it's in our account before our direct deposit goes out.
Prorate is not a hard formula, but makes things a tad more cumbersome.
Starting billing whenever they join is the easiest way, but then you have little bits of money drafting throughout the month, instead of 1 or 2 large collections (which is normally the preferred method)