Suggested Plans for Annual Red Door Program
Say that your current plans are $100, $200, and $300 dollars per year. We will call those plans “current plans” or “Blue Door Plans”
The Red Door program is the premium plan or the plan with the additional benefits. It will also cost you more when a member joins these plans or switches from a current plan to a Red Door plan. For this example let’s say that your agreement calls for a 39.95 set up fee and a 3.95 monthly charge. This monthly fee would equal a charge of 47.40 per year.
First thing to do is to set up the Red Door plans to reflect this additional cost plus any markup you would like to add.
For this example let’s say your current $100 plan will have a set-up fee of 49.95 and an additional $100 per year. So this Red Door plan will be $200 per year. With these numbers you will make an additional $10 on the set up and an additional $52.60 each year. No problems when you have a new member sign up. They pay the set up and they are put into the Red Door plan at $200 per year.
(Click the Image above to see the
FULL-SIZE image and how you can generate
incredible revenue with what you already have.)
But what about someone who is already a member and they want to switch to a Red Door plan?
Go ahead and move them to the Red Door plan. Their next invoice will be calculated based on the new plan that they are now in.
Now what if they are in the middle of their current annual term?
Take the difference in the annual plan amounts between the old plan and the new plan and divide by 12. Let’s say its $100 difference. That would be 8.33 per month. Take the number of months still remaining on their term and multiply by the monthly amount. In our example let’s say they have 6 months remaining. Take 8.33 times 6 for a balance due of 49.98.
Create a Non-dues invoice for 49.98 plus the 49.95 one time set up and bill the member. This action will take care of everything you need to do because their next invoice will be for the correct amount.
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