Estimated reading time: 2 minutes
If you run a lesson-based business, such as a swim school or tennis club, you may already be familiar with perpetual and term-based schedules. But if you’re new to the business or are wondering what the difference is and how to decide between the two, then this resource is a great place to start.
Let’s start by differentiating the two.
What is perpetual?
Perpetual programs run throughout the year - once a customer is booked in, they will remain in the class until they tell you otherwise. For these ongoing programs, fees are usually raised weekly, fortnightly or monthly.
What is term-based?
A term-based program has a start date and an end date, usually following the school term. Fees are raised for the period of the term; most businesses will then roll over the term and include the sessions and bookings so that customers remain booked in for the following term.
Perpetual and term-based comparison
Now that you’re familiar with the terminology, let’s dive deeper into the benefits and drawbacks of each.
Perpetual program pros and cons
| Pros | Cons |
| Ideal for schools and clubs that run classes all year round | Need a year-round team of staff to maintain classes |
| Fees are paid throughout the entire year, promoting a healthy cash flow | Can be hard to set goals/milestones as there are no program end dates |
| Easier for parents as there are no scheduled breaks they need to be aware of | |
| No breaks between programs which help students maintain progression | |
| Can still run holiday intensives alongside your regular schedule (e.g. after morning classes have finished) |
Term-based program pros and cons
| Pros | Cons |
| Good for those that follow the school term schedule | Fees are only paid per term, disrupting your cash flow during holidays |
| Easy to set progression-based goals as there is an end date to the program | Disrupts students’ progress and routine as they have breaks between programs |
| Easy for parents to follow as classes run alongside the school term | Potentially harder to find staff if they won’t be working (and therefore paid) during the holidays |
| Can set up school holiday programs to increase revenue and fast-track student progression | If your business does not rollover bookings from the previous term, this is extra admin work and requires customers to rebook (potentially leading to drop-offs) |
| Ability to update timetable at the end of each term if something needs to change |
If you're still unsure about whether to go perpetual or term-based, speak to our team of experts who will be able to further explain the pros and cons of each in relation to your specific business model.