(For those who cannot pay for a "semester," why not keep it really simple and just have payment due at each lesson, before it begins? This works really well for me.)
I'm glad it works well for you, but I would fear the loss of income if students were, for whatever reason, unable to actually make the lesson. You have reserved your time for them, but if they do not show up, you may not get paid, or may have to spend time and effort collecting from them for a missed lesson. Having some form of "pre-payment" helps insure that you do not fall into this situation and seems to help the students take the commitment more seriously in my experience.
Sharon Szymanski
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