This article summarizes how membership revenue is recognized and the best way to track and report on membership metrics.
Membership revenue recognition
Memberships offer 2 avenues of revenue:
- Recurring billing: Memberships that are charged on an ongoing basis. The charging frequency (daily, weekly, monthly, and yearly) and the term (unlimited or limited to a set number of payments) is managed in the membership product's settings.
- Fixed cost: Memberships that are charged once based on a fixed cost and can be used for a determined period of time. Once these memberships expire, they do not renew and customers would need to purchase a new membership.
For an ongoing indefinite membership that costs $25 per month, the initial upfront payment of $25 is recognized at the time of the transaction occurring.
The following recurring monthly payments of $25 are recognized each month the guest is charged (this occurs one calendar month after their first initial payment).
Each payment is recognized for the amount in the set time frame ($25 in this example). ROLLER recognizes these payments as normal revenue based on the time the transaction lands.
With fixed-cost memberships, the total amount charged will be recognized at the time of the transaction occurring.
Important membership reports:
- Memberships: Detailed list of all membership records.
- Membership Redemptions: Detailed log of membership redemption by date.
- Membership Growth: Visualization of membership sales, churn and net growth over time.
- Membership Status Log: Detailed log of membership status changes by date.
- Recurring Payment Log: Detailed log of recurring payments processed, status and values.
You can also view a membership snapshot from the Dashboard in Venue Manager.
Refer to the guide View and manage member details for more information on how to access and manage members using the membership list.