Recurring Billing | Get Paid On Time
The number one problem that we hear from our studios is LATE PAYMENT! Studio owners are operating from a place of fear that students will go to their competition down the block where they will be allowed to carry balances… indefinitely. It is extremely difficult to lose the fear and operate from a base of strength unless you have a robust waiting list of students waiting to take the place of the non-paying student and that is what this website is all about: giving you fast easy ways to increase enrollment so you lose the fear of losing a student. But, alas I stray from my main point: getting parents to pay on time.
Ah, if only it was that easy! But it is! Getting parents to pay on time is easy as 1-2-3 when you use recurring billing. Recurring billing is when you take a parent’s credit card and create a recurring billing account in a payment gateway, such as Authorize.net, or Paypal Pro. Yes, they cost money– anywhere from $20-$30/month. Yes, you do have to pay a credit card transaction fee of anywhere from 1.5-3.5%. But, how many students do you have in arrears? How much money are you carrying month to month?
Training Your Parents
We understand that some parents have financial difficulties and it is up to you as a studio owner whether you want to carry them. However, one repeating story we hear from our most successful studios is that they have “trained” their parents to pay on time. They have been firm, but nice about requiring payment before the first of the month. After all, your landlord, the electric company, and your teachers do not wait for their payment. How do you “train” your parents?
- Offer a small “reward” for parents that switch to recurring billing such as a $10 gift certificate to your store or toward a costume.
- Offer a small discount for opting in for recurring billing
- Eliminate the registration fees or lower the registration fee for recurring billing parents.
- Communicate: parents must ultimately pay all their bills. Isn’t it about time that dance class isn’t last in line?