Even today, in the fitness world, many consultants continue to push annual memberships as if they were the main solution.
The basic idea is simple: “If I sell an annual, I secure a large slice of guaranteed revenue.”
But this security is, in reality, only apparent.
The problem with annuals
The first limitation is obvious: that revenue is guaranteed only for that year. And the renewal, which is the real challenge, is by no means certain.
Another argument is often added: in general, monthly or quarterly memberships have low renewal rates. But do we really think that with annuals the problem does not exist?
The risk is building a sandcastle: you cashed in immediately, but you don’t know if the customer will still be with you the following year.
This applies not only in fitness, but in any sector: selling annual contracts with the sole aim of locking in revenue means adopting a shortsighted vision.
Of course, I’m not saying annuals shouldn’t be sold. They make sense within a balanced marketing mix. But relying exclusively on this tool is a risky move.
A provocative question
Let’s imagine we have sold 100 annuals.
If half of these clients came to train only ten times in the whole year, can I really consider this a success?
I earned immediately, sure. But what experience did I really leave the customer? And above all: will they want to renew?
What perception will these customers have of the service you offered them? Feeling chained if they can’t or don’t want to come anymore over time? Feeling in chains?
Working with credits
An increasingly common alternative is the credit model.
Instead of tying the customer to a rigid membership, you sell credit packages to be freely used for classes, lessons or services. The more credits purchased at once, the more convenient each single lesson becomes.
This system offers the customer freedom and flexibility, and the entrepreneur an immediate income but also a crucial advantage: the ability to measure satisfaction in real time.
For more than ten years we have been encouraging clients to work with credits instead of memberships. In recent years, in thousands of centers that today use BookyWay, this system has become more widespread than traditional memberships. And entrepreneurs confirm: they earn more and their clients are more satisfied.
Here, some time ago, we wrote an article that explains well why
That said, the real issue is not “annual vs monthly” or “membership vs credits”.
The real issue is what happens between one sale and the next.
Because renewal – or the decision to buy another package – depends on everything the customer experiences in the meantime.
The real drivers of loyalty
The truth is that it is not the membership itself that guarantees loyalty.
Renewal – or the new purchase of credits – depends entirely on what the customer experiences in the meantime.
Here are the factors that really matter:
- Perceived experience: the customer must feel welcomed, supported, motivated. A gym is not just equipment and classes, but the quality of the time spent there.
- Visible results: if the customer sees concrete progress (physical, energetic, mental), they will be much more likely to stay.
- Variety and offer: does the customer find the courses they are looking for? Are there schedules compatible with their life? If everything is full or unavailable, they will never renew.
- Relationship with instructors: the bond with those leading the classes is often decisive. An empathetic and engaging instructor is worth more than a new machine.
- Community and motivation: many people don’t train just for their body, but to socialize, to feel part of a group. If I create this bond, renewal becomes almost automatic.
- Quality/price ratio: the client doesn’t only evaluate the cost, but the perceived value. If they feel they receive a lot in return, they will gladly pay again.
- Continuous communication: newsletters, notifications, personalized messages make the customer feel followed, and bring them back more easily.
Why credits work better
With credit packages every renewal becomes an immediate thermometer.
If the customer comes back to buy, it means the drivers worked.
If not, the problem emerges right away and can be addressed in time.
With annuals, on the other hand, the illusion of “secure revenue” can lead you to underestimate a fundamental aspect: even if you monitor attendance, the already cashed-in contract gives you no immediate signal about how motivated the customer is to renew.
The risk is realizing too late that the experience didn’t work, precisely when the renewal time arrives.
Clicking here you can find an article that explains how to create a good credit price list
Conclusion
Annual memberships should not be demonized: they make sense in some strategies and can work for part of the clientele. But thinking they are the only solution to guarantee revenue and loyalty is, in my opinion, the real risk.
The credit model does not necessarily replace annuals: it complements them, offering entrepreneurs and clients a more flexible, transparent and measurable ground.
In the end, the point is not choosing between black and white, but building an intelligent mix that enhances the customer experience and guarantees business sustainability.
Because in the end, the real question is not: “How many memberships did I sell?”
The real question is: “How many customers found enough value to come back and buy again?”