I cannot answer your question by making a case for outsourcing your billing since the answer will vary from person to person and club to club. The outsourced or full service billing solution is not for everyone and there are several factors to consider as you evaluate this critical part of your business. It is definitely not a “one size fits all” model. I can help you review the pertinent factors to consider as you go through the decision making process.

In an outsourced “full service” billing solution, you are entering into a process where a company will process your EFT portfolio for you and mange all related a/r functions. This would include follow up on any decline activity that occurs as a result of your EFT process. It also usually includes handling any changes in membership, client follow up, a/r recovery and virtually any process that effects the member account. In essence, you are pushing all of your back office activity out to your full service provider. This is an option that exists in our industry, but it is not for everyone. And, there are several factors to consider when you make this decision, such as the availability of back office personnel who could manage your billing activity. Many facilities simply do not have the resources to manage this function…therefore, a full service (outsourced) billing solution is an obvious course of action for them. Some club owners and operators believe in the philosophy that they are not in the business to provide administrative assistance. They want to hire staff who are all dedicated to enhancing profit center revenue, selling memberships and improving the customer experience. They subscribe to the belief that the “ billing and admin function belongs with the billing and software companies”. Rates for the full service model are another variable to be closely scrutinized and considered since you want to have a clear and concise understanding of exactly what is being charged for this service. This will likely be another key factor to consider in making this decision. Full Service Rates will be higher than simple EFT processing rates. Know and understand those differences.


You also have the billing option or working with a software provider who provides an interfaced solution for simply processing your EFT file for you without the cost or the details of the full service follow up. This is a very popular, cost efficient, and financially viable solution for many owners and operators. In this scenario, you are responsible, at the club level, to manage your accounts receivable in house. This includes all returned or declined items that occur as a result of the EFT process. I personally support this approach and see the value in most instances. Again it depends on the factors involved and the business philosophy of the operators. There is no right or wrong way….there is only the way that is the best fit for each facility.

Since the success of club management is largely predicated on how well we manage our accounts receivable….it is critical to make the decision that will have the most optimum bottom line effect. Be sure to do your due diligence; understand the billing models, the rates, and the product that is the backbone to these solutions.