I’m going to share a simple idea here with you that you can use to generate some additional income no matter what kind of programs you are running.
You may even already offer this option, but aren’t making the most of it.
The idea is simple – Offer a limited number of discounted, pre-paid memberships.
It is vitally important that you only offer a limited number for many reasons. First, you want to have the goal of growing your monthly tuition collection to eventually cover all of your expenses.
As you are growing this aspect of your business, you can create a quick infusion of cash by offering pre-paid memberships. You can do 6,12, 18, 24 months with a discount as an incentive for students to take advantage of the offer.
We currently offer 9 moths with a 10% discount and 18 months with a 20% discount.
Depending on what you charge and the duration of your offer, you could easily generate an extra $2,000-$6,000 this month by making a few phone calls and extending the offer.
Not everyone will be interested, but there may be a few and you never know if you don’t ask. Also, many people are deciding what do to with those tax refunds that are coming in this month. I’ve seen instructors use this to move out of a community center or grade school into their own location. You can use the extra funds for whatever you choose.
Never allow more than 10%-15% of your student body to take advantage of this for two reasons. One, as I mentioned before, you don’t want to drain the monthly income you need coming in every month. Two, the limited availability will make the offer more attractive to students who are considering taking advantage of the savings.
Some of you may be freaking out right now because you, for whatever reason, don’t like or don’t want to do contracts. I could go off about that but I’ll save that for another time.
Bottom line here is that those who take advantage of your offer don’t do it because the want to quit next month. These are the people who have the confidence in you and your program to make a bigger commitment.
If you offer an upgrade program you can get as creative with this as you want. You can spice up the offer with extras like t-shirts and whatever else you know your people would be interested in.
Make this idea your own and let it rip. Send me your success stories over the next month and I’ll share them here!
About the Author:
Mr. Karstadt is the founder of 1 TKD Consulting and owns the longest running ITF Taekwon-Do school in Arizona, Karstadt Taekwon-Do in Phoenix, AZ with his father Master David Karstadt. He has been training since 1984, earned his Black Belt at the age of 8 and is currently an internationally renown intstructor teaching the culture, discipline, leadership and business skills of Taekwon-Do in classes and seminars to Instructors around the world. He has been a member of eight U.S. Taekwon-Do Teams and has traveled to 14 different countries competing in Taekwon-Do. He has won numerous medals at the World Championships and in international competition, most notably winning the 2004 World Championships in South Korea with two gold medals and the Men’s Team All Around Trophy. Mr. Karstadt currently resides in uptown Phoenix, Arizona with his wife and three children. Mr. Karstadt can be contacted by e-mail at email@example.com