Over time, I have seen confusion in the association marketplace on what to call a mailing asking a member to renew their membership for the upcoming year. Two terms are regularly used. Some call the effort a renewal notice or statement; others use the term invoice and put that wording on the piece.
Words matter. So, let’s examine the difference between the
two and determine the proper way to ask a member to renew.
To start, here is a helpful definition of an invoice. “An
invoice is a dated legal document that records the specifics of a transaction
between a seller and a buyer. A company presents an invoice to a buyer to prove
they purchased a product or service and includes the terms of the transaction
and the amount paid.”[i]
Based on this definition, it is inappropriate to invoice a
member for their renewal because a member is not obligated to pay. They have
not yet agreed to order or receive a service for the upcoming year. So, the
proper terminology for a renewal effort would be to send a renewal notice or a
renewal statement.
Here are some additional distinctions between an invoice and
a renewal notice for a membership or subscription.
An invoice is:
· A document provided by a company to a purchaser requesting payment for the goods delivered or services rendered,
· It typically includes details such as describing the goods or services provided and
· Invoices are typically issued after the delivery of goods or the completion of services and work as a formal request for payment.
On the other hand, a renewal notice serves as:
· A communication sent by a service provider like an association or subscription-based business to a member or customer whose term is about to expire,
· It serves as a reminder to the customer to renew their service before it lapses and
· Unlike an invoice, a renewal notice does not request immediate payment but instead prompts the customer to take action to continue their membership or service.
So, can you ever invoice a member for their membership
payment? Yes, there are times when you can send an invoice to a member. This situation
occurs when that member has requested a bill for their membership. They may
need an invoice to have their company pay for the membership. Some organizations
offer a “bill-me” on a membership application or renewal notice. But in each of
these cases, the member has proactively agreed to make a payment for their membership.
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