# Membership model

A term used when buying med spa.

Monthly plans that prepay for treatments, turning occasional spending into predictable revenue.

A real membership base lifts the multiple above what a discretionary-spend cash business earns, because it makes next quarter predictable. Check the count and the [churn](https://searchspheresource.com/glossary/churn), and then check the banked credits, which are a liability a buyer inherits: treatments already paid for and not yet delivered are work you will perform for money the seller has spent. Get the balance quantified in the [working-capital](https://searchspheresource.com/glossary/working-capital) conversation rather than discovering it in month two.

Part of: Buying a Med Spa (https://searchspheresource.com/guides/buying-a-med-spa)

Source: https://searchspheresource.com/guides/buying-a-med-spa/terms/membership-model
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt