JEM Aesthetics went from 3 confusing membership tiers to 2 simple ones. The result? They crossed $100,000 a month in membership revenue.
That transformation didn't happen by accident. It happened because they discovered something most med spa owners learn the hard way: complex membership programs drive patients away, while simple beauty bank memberships keep them coming back.
If your current membership program suffers from high churn, patient confusion, or unpredictable revenue, you're not alone. Traditional use-it-or-lose-it models create anxiety for patients and headaches for staff. Every month, members wonder if they're getting their money's worth, and too often, they cancel.
A beauty bank membership solves this problem by letting credits roll over. Patients never feel like they left money on the table, which means they stay longer and spend more.
In this guide, you'll learn exactly how beauty bank memberships work, why they outperform traditional models, and the step-by-step process to implement one in your practice. Everything here is based on data from 4,000+ practices and real case studies from the 2025 Membership Masterclass, including practices generating $50,000 to $100,000+ in monthly recurring revenue.In this guide
What is a beauty bank membership?
Why beauty banks outperform traditional memberships
How to structure your beauty bank tiers
Getting your team on board
How to launch your beauty bank membership
How to measure beauty bank success
Why beauty banks outperform traditional memberships
The data on beauty bank memberships is clear: members spend 44% more than non-members. But the advantages go beyond just increased spending.
Dramatically reduced churn
When patients know their credits roll over, they don't cancel during busy seasons. Life happens, vacations, work deadlines, family obligations. With traditional memberships, these disruptions often trigger cancellations. With beauty banks, patients simply pause and return when ready.
Consider this real example from Phil Sitter, CEO of RepeatMD: "I bought a membership at Stretch Labs. It was great until I went on summer vacation. When I came back, they told me my sessions didn't roll over. I canceled immediately."
This story repeats itself thousands of times every month at practices using outdated membership models. One inconvenient month leads to cancellation, and you've lost that patient's recurring revenue permanently.
Increased average spend
Beauty bank credits have a compounding effect on patient spending. When a patient has $600 in accumulated credits, they're more likely to book that $900 treatment package because the gap feels manageable. They're also more likely to add products or additional treatments to their visits.
Allure Aesthetics discovered this when they implemented beauty banks: they're now generating $50,000 per month in membership revenue from a single location. Their patients buy bigger packages because accumulated credits make premium treatments more accessible.
Psychological safety that builds trust
The beauty bank model communicates something important to patients: you're not trying to take their money. You're building a relationship where their investment is protected.
As the team at JEM Aesthetics puts it: "Clients don't feel like they left money on the table. It was always going to be there. If they didn't touch their membership for six months, they had that amount in six months to spend. They don't have to pay a fee. It felt very much in the client's hands."
This trust translates directly to retention. Patients who trust you don't look for competitors. They stay, they refer friends, and they increase their spending over time.
The economics of retention vs. acquisition
Acquiring a new patient costs 5-7 times more than keeping an existing one. When your membership model actively drives cancellations through rigid rules, you're creating an expensive problem.
Consider the lifetime value difference:
Patient who cancels after 3 months: $450 in membership revenue
Patient who stays 2 years: $4,776 in membership revenue (plus treatments purchased using credits)
That's a 10x difference in lifetime value, and it often comes down to whether your membership model creates anxiety or security.
Getting your team on board
The best-designed membership program fails if your team doesn't believe in it. Provider resistance is real, especially when staff sees membership discounts as a threat to their commissions.
Here's the conversation that happens in break rooms everywhere: "Great, now patients get 20% off. That's 20% less in my pocket."
This fear is understandable but mathematically incorrect. And your job as a practice owner is to show your team the real numbers.
The volume math that changes minds
When JEM Aesthetics rolled out their beauty bank program, one nurse was skeptical. She was their top revenue producer and worried about discounts eating into her earnings.
Here's what actually happened: She cut her hours by 65 hours per month and made MORE money.
How? Memberships increased patient volume and average transaction size. A patient who might have purchased two syringes of filler now purchases five, because the membership discount makes the full treatment plan affordable.
The math works like this:
Before membership: Patient pays $600 for 2 syringes (100% of your price)
After membership: Patient pays $1,020 for 5 syringes (after 15% discount)
Even with the discount, you've captured $420 more in revenue from that single transaction. Multiply that across all member visits and the volume increase dramatically outweighs the discount percentage.
Training your team on the sales conversation
The membership conversation should happen before you quote standalone prices. This is critical. If you quote a price first, then mention the membership, you've framed the membership as an upsell. If you mention the membership first, you've framed it as the default smart choice.
Train your front desk with this sequence:
Credential your practice: "At JEM, we specialize in natural-looking results with the latest techniques."
Introduce the membership: "Are you familiar with our membership program? Most of our patients are members because of the savings."
Explain the value: "You'd pay $199 per month, which goes into your beauty bank as credits. Plus you get 15% off everything. No expiration, your credits roll over."
Then quote pricing: "Botox is $14 per unit, but that's before your membership discount and any manufacturer incentives."
This sequence positions membership as the obvious choice, not an afterthought.
The phone script that works
When a patient calls asking about pricing, here's an effective approach:
Patient: "Hi, I'm calling to get pricing on Botox."
Staff: "I'd be happy to help with that. Are you currently a member of our practice?"
Patient: "No, I'm not."
Staff: "Let me tell you about our membership first, because most patients find it's the best value. For $199 a month, you get that amount in credits toward any treatment, plus 15% off everything. The credits never expire. Botox is $14 per unit before your membership savings, so members typically save quite a bit."
This approach naturally guides patients toward membership rather than positioning it as an add-on.
How to measure beauty bank success
Once your beauty bank is live, track these metrics to optimize performance:
Active members and MRR
Monthly Recurring Revenue (MRR) is your north star metric. If you have 100 members at $199/month, your MRR is $19,900. Track this number monthly and set growth targets.
JEM Aesthetics tracks MRR across their three locations and can see exactly how each practice contributes to their $100,000+ monthly total.
Churn rate
Churn rate measures the percentage of members who cancel each month. A healthy beauty bank program should see churn below 5%. If you're above that, investigate why members are leaving.
Common churn causes:
Members not using credits (they don't see value)
Poor onboarding experience
Staff not reinforcing benefits during visits
Competition offering better pricing
Credit utilization
Track what percentage of accumulated credits members actually use. Low utilization might seem good for your bottom line, but it's actually a warning sign, members who don't use credits eventually cancel because they don't see value.
Healthy utilization looks like members using 60-80% of accumulated credits. If patients are accumulating too much, encourage them to book treatments or remind them of their balance.
Benchmarks from successful practices
Based on data from the 2025 Membership Masterclass:
Strong practices: $50,000-$100,000+ MRR
Healthy churn rate: Under 5% monthly
Member spend increase: 44% more than non-members
Credit utilization: 60-80% of accumulated credits
If your numbers fall short of these benchmarks, revisit your tier structure, staff training, or member engagement strategy.
Frequently asked questions
What is a beauty bank membership and how does it work?
A beauty bank membership is a monthly subscription model where patients pay a set amount (typically $150-$300) that accumulates as credits in their account. Unlike traditional memberships where unused benefits expire, beauty bank credits roll over indefinitely. Members can use their accumulated credits toward any treatment or product in your practice, plus they typically receive VIP discounts of 10-20% on all services.
How much should I charge for a beauty bank membership?
Price your membership slightly below your average patient's monthly spend. If your typical patient spends $250 per month, set your membership at $199. This makes the membership feel like an obvious value while guaranteeing commitment. Most successful practices offer tiers between $149-$299 per month, with the sweet spot around $199 for entry-level and $299 for premium tiers.
Do beauty bank credits expire?
No. The defining feature of a beauty bank membership is that credits never expire. This eliminates the "use it or lose it" anxiety that causes high churn in traditional membership models. Patients can accumulate credits over several months and use them for larger treatments when ready.
How many membership tiers should my med spa offer?
Two tiers is the proven optimal structure. JEM Aesthetics found that simplifying from three tiers to two dramatically improved their sales and reduced patient confusion. More than two tiers creates decision paralysis, while a single tier limits upsell opportunities. Name your tiers distinctively (like Emerald and Diamond) so patients can easily understand the difference.
What's a good membership churn rate for med spas?
A healthy beauty bank program should maintain churn below 5% monthly. If your churn rate is higher, investigate common causes: members not using credits, poor onboarding experience, staff not reinforcing benefits during visits, or competitive pressure. Beauty bank models typically see significantly lower churn than traditional use-it-or-lose-it memberships.
How do I get my staff to sell memberships?
Show your team the volume math. When JEM Aesthetics introduced their beauty bank program, one skeptical nurse ended up cutting her hours by 65 while earning more money. Discounts drive higher total revenue because patients purchase more. A patient who might buy 2 syringes at full price often buys 5 with a membership discount. Train staff to mention membership before quoting prices, positioning it as the default smart choice rather than an upsell.
How long does it take to build a successful membership program?
Results vary, but practices consistently see momentum within 45-90 days of a focused launch. Vanessa, a solo injector featured in the 2025 Membership Masterclass, reached $10,000 in monthly recurring revenue within 45 days. Membership events can accelerate growth significantly. Chris Balby sold 130 memberships in a single day at his Candyland-themed event.
What's the difference between a beauty bank and a traditional med spa membership?
Traditional memberships lock patients into specific treatments that expire monthly. A patient pays $150 for one facial, and if they miss that month, they lose the benefit. Beauty banks flip this model: payments become flexible credits that roll over indefinitely and can be used toward any treatment or product. This flexibility dramatically reduces cancellations and increases patient satisfaction.
Let's bring this together:
Beauty banks eliminate churn by removing use-it-or-lose-it anxiety, patients never feel like they lost money.
Simple 2-tier structures outperform complex models, if patients can't explain it in one sentence, simplify it.
Members spend 44% more when they feel invested and valued.
Staff buy-in requires showing the volume math, discounts drive higher total revenue through increased purchases.
Launch events accelerate adoption, Chris Balby sold 130 memberships in one day.
JEM Aesthetics didn't hit $100,000 per month in membership revenue overnight. They started with a complex system that wasn't working, simplified ruthlessly until patients understood it instantly, and built momentum from there.
You can do the same.
Start with one simple tier. Nail the value proposition so clearly that patients can explain it to friends. Train your team on the conversation. Then expand from there.
Your practice has the patient relationships already. A well-designed beauty bank membership simply gives those patients a reason to commit, and a structure that makes them feel valued rather than pressured.
Ready to see how RepeatMD automates membership tracking, renewals, and mobile checkout?
Book a Demo