What exactly is the difference between a “billing companies” and a “fitness club management software” companies?
Fitness Club Management Software Companies
There is no hard and fast rule about which company falls into what category. Generally, however, fitness club management software companies (like iGo Figure Software, for example), never touch your money. Instead, payment processing is handed off to a payment processor who automatically deposits the money into your bank account. You get the peace of mind that your money is not passed through a bunch of middlemen. These companies specialize in software to help you manage your club. The really great ones are run by former fitness club owners and have achieved substantial software development credentials, like iGo Figure’s Microsoft Gold Partner certification. Just because a fitness club management software company does not hold onto your money and employ a bunch of bill collectors to shake down your members does not mean that the these companies do not handle bill collection. To the contrary, often they include very effective billing/collection tools to automatically lock out delinquent members, and automatically contact them to update their payment method.
A billing company, on the other hand, collects your member dues, deposits your hard-earned money in their interest-earning bank account, and deducts their fees after all the payments have cleared, which can be a lot. Some billing companies charge 7-8% or more (or less) of your GROSS revenue. Typical pay processing fees when you go direct with a pay processor are much less. And when your members don’t pay, billing companies turn your members over to their bill collectors.
The story of one such billing company really hits the nail on the head regarding the risks associated with going with a billing company. According to this story, the billing company has not paid the gym owners the money they collected. And they are not returning calls. Think about trying to run your club without a month or two of revenue!
When you think about whether you want a billing company handling your money and the fate of your business, you might want to think again. The iGo Figure Software has many great collection tools without exposing you to the risk of a billing money going out of business and not paying you your money.
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To find out more about how the iGo Figure Fitness Club Management Software can help you manage your fitness facility without holding your money hostage, give us a call!