“Higher education has wanted to camouflage or ignore the fact we’re a business,” said Mitch Nettesheim, the senior associate director of Programs at Purdue University. “We have to look at the balance sheet from a perspective as if it’s our own money coming out of our wallet and take responsibility for those fiscal processes. This ensures we’re making good decisions for value overall.”
Achieving this balance between staying financially afloat and offering top-quality programming is difficult but not mutually exclusive. Sometimes revenue streams cover the cost to facilitate the operations of more elaborate offerings or can provide financial cushion for future programs.
A unique opportunity Purdue’s Recreation & Wellness (RecWell) offers is private F45 Training. The rec center has a dedicated space to hold classes and events, and coaches are trained to teach these specific workouts.
“We chose to monetize this program because it was a big project for us,” said Taylor Arnold, the senior assistant director of Fitness and Special Programs at Purdue. “It also allows us to host special events and helps us collaborate with coaches and participants. We ask what events they want to see, and we have the funding to do that. So yes, they’re paying for it but they’re also getting an elevated experience through their coaches and special event options.”
EXTRA CREDIT: Purdue RecWell sees revenue boost with pay-to-play model.
This semester, RecWell has over 290 students in F45 Training. Arnold emphasized how community and belonging are integrated into programming through events. Examples include coffee and donuts outside of classes or workouts with coaches. Regular challenges and competitions are offered which increase engagement and bring more value to the monetized program.
“We’re able to see the impact through these types of things,” said Arnold. “We have two coaches in the room to help motivate them, but most of the motivation they get is from their peers. It creates a lot of friendships as we see them interacting in class and working out together outside of class.”
A common challenge with monetizing programs is it’s harder to gain participants, especially if other offerings are free and more popular. To help with marketing, the F45 program is promoted to approximately 19,000 participants in free Group X classes. Every month, F45 will have a free class which is announced in Group X programs which is a great way to get people trying and potentially hooked on the offering.
Other strategies include providing early-bird pass sales. Students can also purchase a pass at any time and pay the amount depending on how many days are left in the program. Both of these methods drive engagement and promote financial accessibility.
EXTRA CREDIT: Reving up revenue streams in campus rec.
“It makes more sense to offer students access to the program in these ways,” said Arnold. “We’ve seen positive feedback. It adds more value to the free classes we’re able to offer as a trial. They’re able to take that class and then be met with a nice rate.”
For Jessica Benoy, the assistant director of Facilities and Aquatics at Rice University, listening to feedback and implementing it has led to success in the department’s swim lesson programming. One example is when a participant emailed her to propose adult swim lessons be changed to a different time. After making the change to a more accessible time, she saw an increase in participants.
The learn-to-swim program offers lessons for six-month-olds to adults. This year, about 250 people from the university and surrounding area are taking part. The budget for Aquatics is fully funded by programming, so finding revenue streams like this are vital for Benoy. Lessons can also be the first step toward greater involvement in other programming.
“A lot of students are never exposed to swim lessons or any bodies of water before they come to college,” said Benoy. “It’s a great opportunity for them to learn in a safe and controlled environment relatively cheaply. If they get involved in intramural sports offerings like water polo, they can learn even more.”
Extending the lessons to community members is also another key to success for Benoy. Rice’s lessons stand out from local competitors because of the cheaper price tag without sacrificing quality. It also helps create connections between the campus and the surrounding community.
EXTRA CREDIT: Swimming through a revenue stream.
“One of our core values at Rice is community and bridging the gap between campus and the greater Houston, Texas, community,” said Benoy. “Learn-to-swim lessons are a great opportunity and makes it easy for community members to come onto campus. Our rates are less expensive than others in the surrounding areas which really helps get people’s feet in the door.”
Along with campus and greater community relationships strengthening, Benoy noted the need to encourage connection between instructors and participants or families. Doing so improves the quality of the program and benefits everyone involved.
“Encourage instructors to create relationships with the participants,” advised Benoy. “Especially for learn-to-swim lessons, fostering connection is huge. People underestimate how much a relationship can help the attendee experience. Focusing on that piece between instructor and participant encourages the learning that happens.”
At the University of Maryland, Baltimore County’s (UMBC) summer camp, which started in 1978, relationships and building a good reputation have led to great success. When it opened registration in February this year, all spots were filled in less than 90 minutes.
Communicating with the parents who couldn’t register or are having a problem furthers those relationships and shows the value of the program goes beyond the price tag. “The human element of knowing you’re talking to other people who you know and can trust shows we care,” said Gary Wohlstetter, the retired senior associate Athletic director, Recreation and Physical Education. “It’s not about making money for us which the parents really appreciate.”
EXTRA CREDIT: Successful summer camp strategies.
Having a passion for what you’re doing, or who you’re doing it for, is a big piece of advice from Wohlstetter because it produces a better program. Having a great foundation is the beginning of long-term revenue streams.
“If your program doesn’t connect you to your participants and it’s not something you want or need, then it probably isn’t going to be successful long-term,” said Wohlstetter. “If you’re using it as an additional revenue stream, understand the why behind it, how you can do it and what your needs are.”
From there, find resources or experts who can help you build a quality experience. For a summer camp, Wohlstetter recommended looking at the American Camp Association and the website of your local or state government. Ensure everything is operating legally. When it comes to operations, investing in software, like CampDoc, that can handle registration and communication with parents is worth it for UMBC.
Once set up with a solid foundation, it’s important to keep the program evolving. General needs and participants’ expectation will change, and so should your program. One example Wohlstetter gave was the necessity to raise the rate of camp because of the increase in staff wages and inflation. When the camp becomes more expensive, the reasons why and how the experience exceeds that value is clearly communicated.
EXTRA CREDIT: Reinvent your rec center next summer.
“We tell parents the specific reasons why we have a more significant increase in the rate of the camp, and most of them understand,” said Wohlstetter. “They appreciate the fact we’re sharing the ‘why.’ I’m not sure how many people in our field are really entrepreneurial in their focus and effort. I think people are being pushed, and this won’t stop because we’re being challenged more in campus recreation.”
Looking at the value of your programming doesn’t end with the experience your customer is paying for. When charging money for offerings that provide another revenue streams, there will always be elevated expectations. But this is best returned in your emphasis on quality which participants appreciate.
“Think outside the box when looking at revenue streams,” said Wohlstetter. “There are many opportunities to generate revenue, but ask yourself if your program has enough value that they’re willing to pay for it. Typically, when you charge a fee people will take it more seriously. It has to be well organized and a good program.”
