Old News

[Harkon72]

My present club charges £10 a year membership that includes comprehensive insurance. £5 for each 2 hour session, which you pay at the time, so only each time you attend, and £10 for each grading which happen once a year. I think it's a good deal. Our Sensei does not believe that you should attempt to make a living from your martial art, he says that you lose the ethic of what you started and it takes away any spiritual aspect. I tend to agree with him.

[ps1]

Yeah... This isn't an issue of using a contract. It's an issue of being an ethical businessman. It would seem he was not.

Contracts, when used ethically, are a good thing for both the business and the client.

1. The obvious thing is that it creates equity in a business that would not have any otherwise.

2. Contracts help many students stay motivated to train. Unfortunately, there are many who will train more just because they know they're paying for it. This probably doesn't describe many people on this forum. But I'm sure you can think of many "hobbyists" without much trouble.

The key is to have a contract that provides the business some stability but doesn't make it impossible to get out. Here's how to do it:

1. DON'T HIRE AN OUTSIDE COMPANY TO DO YOUR BILLING. there are plenty of other options. Besides, billing companies will never collect from someone that doesn't want to pay and will only hurt your rep. They make it hard for people to quit for legitimate reasons.

2. Include a clause that provides the client a way out for extended injury/illness, moving away for job/school, Loss of Job (especially in this economy).

3. Provide a 30 day no questions asked guarntee. They can quit any time in the first 30 days. No problem. No refund...but no contract.

4. Be honest from the start: "Yes, this is a One Year agreement, you can cancel it for these reasons... but it's important to realize that non-use is not a reason for cancellation. Like a Gym membership, you have to continue paying tuition regardless of use."

5. Send emails, texts and snail mail to members that aren't training regularly. Let them know that you want them to succeed. They MUST be more than a dollar sign to you.

6. BE HONEST ALWAYS!

That's how you use membership agreements in an ethical manner.

[mal103]

My present club charges £10 a year membership that includes comprehensive insurance. £5 for each 2 hour session, which you pay at the time, so only each time you attend, and £10 for each grading which happen once a year. I think it's a good deal. Our Sensei does not believe that you should attempt to make a living from your martial art, he says that you lose the ethic of what you started and it takes away any spiritual aspect. I tend to agree with him.

That's pretty much where I am with my club, £10 a year fee including insurance, £4 per session, 2nd and 3rd sessions in the same week half price and then free, all pay as you train so long as it covers the hall hire. Gradings are more frequent and currently £18 but will scale them back if profit builds up.

The only reason I see to do a contract from a club owners view is to ensure there is money available to pay the rent, if a lot of people suddenly stop paying then you have the option of cancelling the halls so you aren't out of pocket. If you are worried too much about your students not turning up regularly then you need to ensure you are giving them a quality product.

I might sign a contract on my home electricity bill but that is something I will need, I doubt if I would sign up for anything like a hobby, there is normally someone that will do it without a contract.

Money and Karate (MA) is a bad mix. I'm lucky that I recently had my wife start, she also helps run the club and now collects the money, I like it that the students don't always associate me with money as they don't hand it to me anymore, may sound odd but I like that it's Karate that binds us together each week and not cash.

[bushido_man96]

Yeah... This isn't an issue of using a contract. It's an issue of being an ethical businessman. It would seem he was not.

Contracts, when used ethically, are a good thing for both the business and the client.

1. The obvious thing is that it creates equity in a business that would not have any otherwise.

2. Contracts help many students stay motivated to train. Unfortunately, there are many who will train more just because they know they're paying for it. This probably doesn't describe many people on this forum. But I'm sure you can think of many "hobbyists" without much trouble.

The key is to have a contract that provides the business some stability but doesn't make it impossible to get out. Here's how to do it:

1. DON'T HIRE AN OUTSIDE COMPANY TO DO YOUR BILLING. there are plenty of other options. Besides, billing companies will never collect from someone that doesn't want to pay and will only hurt your rep. They make it hard for people to quit for legitimate reasons.

2. Include a clause that provides the client a way out for extended injury/illness, moving away for job/school, Loss of Job (especially in this economy).

3. Provide a 30 day no questions asked guarntee. They can quit any time in the first 30 days. No problem. No refund...but no contract.

4. Be honest from the start: "Yes, this is a One Year agreement, you can cancel it for these reasons... but it's important to realize that non-use is not a reason for cancellation. Like a Gym membership, you have to continue paying tuition regardless of use."

5. Send emails, texts and snail mail to members that aren't training regularly. Let them know that you want them to succeed. They MUST be more than a dollar sign to you.

6. BE HONEST ALWAYS!

That's how you use membership agreements in an ethical manner.

I agree with ps1. This is what contracts should be for. I sign a contract at my TKD school, usually for 5 years at a time, because I know I will be training, and it gives me the best deal. Funds come directly out of my account, so I never have to worry about being up to date with dues...I just go train. From there, I just have to pay for testings, tournaments, etc.

This guy really was just wanting to rip his students, and it sounds like he snowballed enough people to make some money on it. I don't think things like this happen as often as we might think. Just when it does, the "contracts are bad" arguments come out in force.