{"id":1611,"date":"2013-04-16T00:40:44","date_gmt":"2013-04-16T04:40:44","guid":{"rendered":"http:\/\/www.naylor.com\/associationadviser\/?p=1611"},"modified":"2013-04-16T00:40:44","modified_gmt":"2013-04-16T04:40:44","slug":"need-more-non-dues-revenue","status":"publish","type":"post","link":"https:\/\/www.naylor.com\/associationadviser\/need-more-non-dues-revenue\/","title":{"rendered":"Need More Non-Dues Revenue?"},"content":{"rendered":"<figure id=\"attachment_921\" aria-describedby=\"caption-attachment-921\" style=\"width: 85px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2013\/01\/Hank-Berkowitz-thumbnail22.jpg\"><img decoding=\"async\" class=\"size-full wp-image-921\" alt=\"Hank Berkowitz\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2013\/01\/Hank-Berkowitz-thumbnail22.jpg\" width=\"85\" height=\"86\" \/><\/a><figcaption id=\"caption-attachment-921\" class=\"wp-caption-text\">Hank Berkowitz, Editor-in-Chief<\/figcaption><\/figure>\n<p>How often do hear comments like these around the office or at industry gatherings? &#8220;Younger people aren\u2019t joiners.&#8221; Or &#8220;Members want everything so customized these days, I\u2019ve got 10,000 packages for 10,000 members.&#8221; Or &#8220;We need to show \u2018em ROI on every single benefit these days.&#8221; Or how about, &#8220;They want what they want when they want it exactly in the format they want it.&#8221;<\/p>\n<p>If so, you\u2019re not alone. Dues-based organizations of all shapes and sizes are wrestling with ways to stay relevant and competitive in a world where potential members put you through the wringer before they\u2019ll commit to joining (and staying onboard).<\/p>\n<p>As my colleague Bob Burris is fond of saying, &#8220;It\u2019s a different brand of ball being played out there,&#8221; whether you\u2019re recruiting or retaining members, selling advertising, sponsorships and exhibit space, or building out your professional education programs.<br \/>\n<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/takeaways.png\" \/><\/p>\n<table width=\"\" cellspacing=\"3\" cellpadding=\"3\" align=\"center\">\n<tbody>\n<tr>\n<td>\n<ul>\n<li>Smart associations maintain a year-round dialogue with sponsors and partners, helping them solve marketing challenges and reach business objectives.<\/li>\n<\/ul>\n<ul>\n<li>Advertising and sponsorship should be seen as a member benefit, not as a nuisance. When executed well, it helps members find and vet vendors and partners.<\/li>\n<\/ul>\n<ul>\n<li>Don\u2019t go overboard with NDR just to make a buck. Each program must support your overall strategy and mission, or it could have a negative impact on your membership and brand.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<figure style=\"width: 100px\" class=\"wp-caption alignleft\"><img decoding=\"async\" style=\"margin: 5px 10px;\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/tino%20mantella.jpg\" width=\"100\" height=\"125\" align=\"left\" \/><figcaption class=\"wp-caption-text\">Tino Martella, Technology Association of Georgia<\/figcaption><\/figure>\n<p>Tino Mantella, who has guided the <a href=\"http:\/\/www.tagonline.org\/\" target=\"_blank\">Technology Association of Georgia<\/a> (TAG) to a seven-fold increase in revenue and a 500-percent boost in membership since taking the helm in 2004 observed that &#8220;the more you can run like a business, the more you can impact the not-for-profit world.&#8221;<\/p>\n<figure style=\"width: 100px\" class=\"wp-caption alignright\"><a href=\"http:\/\/www.macpa.org\/\"><img decoding=\"async\" style=\"margin-left: 10px; margin-right: 10px;\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/tom%20hood%20250%20px.jpg\" width=\"100\" height=\"163\" align=\"right\" \/><\/a><figcaption class=\"wp-caption-text\">Tom Hood, MACPA<\/figcaption><\/figure>\n<p>Tom Hood, CEO of the influential <a href=\"http:\/\/www.macpa.org\/\" target=\"_blank\">Maryland Association of CPAs<\/a> (MACPA) said his organization has adopted the formula of L &gt; C. What that means is in a period of rapid change and increasing complexity, the winners are individuals and organizations whose RATE OF LEARNING is greater than the RATE OF CHANGE he said. Hood is fond of using the expression, &#8220;you can\u2019t stop the ocean, but you can learn to surf the waves.&#8221; And perhaps that\u2019s why MACPA has a following that\u2019s exponentially larger than its 10,000-person membership base.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Moving forward<\/strong><\/p>\n<p>While no one can predict the future, it\u2019s clear that dues can\u2019t be expected to sustain membership organizations on their own. A new report by Veris Consulting and Brittenford Systems identified five primary growth challenges cited by association CEOs:<\/p>\n<ul>\n<li>Rethinking revenue model and income generation<\/li>\n<li>Improving program results and metrics as a priority<\/li>\n<li>Improving revenue consistency and forecasting<\/li>\n<li>Generating non-dues revenue, and expanding fundraising<\/li>\n<li>Implementing a transformational strategic plan<\/li>\n<\/ul>\n<p>Notice how four out of the big five growth challenges are related to revenue?<\/p>\n<p>As recent Association Adviser polls show, non-dues revenue (NDR) accounts for at least 25 percent of total revenue at the vast majority of associations (86 percent) and for more than half of revenue at 22 percent of associations.<\/p>\n<p>Drilling into the results above we find that one third of readers say increasing <a href=\"http:\/\/www.naylornetwork.com\/nay-adviser\/articles\/index-v3.asp?aid=214605&amp;issueID=32917\" target=\"_blank\">advertising<\/a>, sponsorship and affinity partnerships is their highest NDR priority today. One in six readers (16 percent) say increasing live event revenue is their top revenue priority in 2013 and 26 percent of readers say increasing revenue from mobile apps, webinars or virtual events is their top priority.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/aaapril2013hbchart2.jpg\" width=\"500\" height=\"219\" \/><\/p>\n<p><strong>Live Events<\/strong><\/p>\n<p><a href=\"mailto:bob@alexanderlawsc.com?subject=Association%20Adviser%20eNews%20article\">Bob Alexander<\/a>, president elect of the <a href=\"http:\/\/www.naepc.org\" target=\"_blank\">National Association of Estate Planners &amp; Councils<\/a> said he\u2019s not surprised that associations still place a high priority on live events in this digital age. &#8220;It\u2019s all about building personal relationships and cross-marketing our networks and expertise,&#8221; he said. &#8220;That\u2019s how we all make a living.&#8221;<\/p>\n<p>TAG\u2019s Mantella agreed about the need for face-to-face interaction: &#8220;Even young people still have a strong need to get out from their desks and see people in person.&#8221;<\/p>\n<p>According to Alexander, event sponsors expect more personalized interaction as well. Just giving them a booth to collect business cards isn\u2019t going to get it done anymore. You need to offer them greater visibility and interaction with attendees. &#8220;They need a forum for sharing need-to-know information with their industry peers\u2014in a non-salesy way\u2014that will ultimately drive attendees to their booth,&#8221; Alexander added.<\/p>\n<p>According to Mantella, the 19,000-member TAG produces about 200 events a year for 32 industry special interest groups. Rather than being all things to all tech people, TAG tries to build sponsorships around specific educational events that focus on industry hot-topics such as automotive technology, cloud computing and defending cyber-attacks. Mantella said there are plenty of company members in each category interested in getting behind these niche events as well as sponsoring roundtables with influential chief information officers.<\/p>\n<p>In another twist, each of TAG\u2019s 25 full-time employees is responsible for developing educational event ideas. And the organization will soon be adding a full-time sponsorship account manager to oversee all of its relationships.<\/p>\n<p><strong>Online advertising<\/strong><\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/angela%20kisskeys.jpg\" align=\"left\" \/>&#8220;Electronic or digital advertising is strong, but new opportunities are via mobile apps, websites, conference apps and digital publications,&#8221; said Angela Kisskeys, marketing and communication managers for the <a href=\"http:\/\/www.msae.com\" target=\"_blank\">Midwest Society of Association Executives<\/a> (MSAE).<\/p>\n<p>While some say online banner ads are pass\u00e9, it\u2019s simply Marketing 101 according to Marcus Underwood, Naylor LLC\u2019s vice president of online solutions. &#8220;Customers must be exposed to an offer multiple times before they become interested enough to engage in the offer. Consumers subconsciously block out some advertisements, but they are still subliminally aware of them. After repeated exposure, they become more comfortable with the offer or company, and are open to a buying proposition.&#8221; In other words, banner displays still work when executed well.<\/p>\n<p><strong>A closer look at sponsorships<\/strong><\/p>\n<p>&#8220;We are seeing more year-long sponsorships and partnerships&#8221; in which sponsors can maximize their time in front of a key audience, said MSAE\u2019s Kisskeys. &#8220;A logo on a sign isn\u2019t the same as it once was,&#8221; she said.<\/p>\n<p>MACPA\u2019s Tom Hood agreed. The days of taking people\u2019s money just for giving them an exhibit booth or &#8220;slapping their logo&#8221; on your website or conference brochure are long gone.<\/p>\n<p>Sponsorship guru Bob Burris points out that it is the association\u2019s responsibility to understand the sponsor\u2019s goals and help them &#8220;activate&#8221; the program in order to reach the right members in the right stage of their purchasing cycle. Otherwise you\u2019ll be in the &#8220;no-thanks&#8221; pile next year, no matter how influential your organization is within your industry.<\/p>\n<p>Charles Popper, <a href=\"http:\/\/www.naylor.com\" target=\"_blank\">Naylor\u2019s<\/a> vice president of association relations notes that savvier associations come to sponsor meetings armed with case studies of successful programs they\u2019ve done with sponsors in the past\u2014and they remember to follow up regularly with sponsors, not just when you need a contract signed. Unfortunately, our research shows that only a very small number of associations have systemic programs to check in regularly with their advertisers and sponsors. &#8220;Shocking, but unfortunately true,&#8221; laments Popper. &#8220;They\u2019re not asking the folks who pay the bills.&#8221;<\/p>\n<p><strong>Webinars, virtual events and video<\/strong><\/p>\n<p>Many associations are now producing their own video content to drive traffic to their websites, to keep members engaged, and more recently to attract sponsorship dollars. Early success stories of web TV are being reported at <a href=\"http:\/\/videos.mheda.org\/keyword\/mheda-tv\">the Material Handling Equipment Distributors Association<\/a>, <a href=\"http:\/\/videos.asq.org\/home\">ASQ<\/a> and the <a href=\"http:\/\/videos.wrla.org\/home\">Western Retail Lumber Association<\/a>, to name a few.<\/p>\n<p>As part of a premiere corporate membership package, TAG conducts <a href=\"http:\/\/buzzon.biz\/2013\/03\/the-buzz-on-biz-podcast-the-technology-association-of-georgia\/\">podcast-style<\/a> interviews with top execs at its member companies. It\u2019s great content for TAG members and corporate partners like the fact that they can use TAG podcasts for their own marketing and branding purposes, explained Mantella.<\/p>\n<p>Like all CPAs, MACPA members need on average 40 hours a year of continuing education credit. Watching MACPA <a href=\"http:\/\/www.macpa.org\/public\/catalog\/courselist.aspx?type=Keyword&amp;key=webcasts\">webcasts<\/a> about important accounting, finance and professional development topics are a popular way for members to get their credit hours. Thanks to the large audience size these programs typically attract, MACPA webcasts are often sponsored by leading industry vendors and service providers.<\/p>\n<p><strong>Social Media<\/strong><\/p>\n<p>While adoption of social media has been robust across the association landscape\u201486 percent of associations are on board according to our latest industry benchmarking study&#8211;monetization of those platforms has been more challenging. Now that TAG\u2019s 32 SIGs each has a dedicated social media manager, revenue should be on the horizon, hinted Mantella.<\/p>\n<p>Attention is what garners the revenue on social platforms according to Hood. MACPA, which has been a social media pioneer since 2006, attracts about 400 live attendees to its annual conference, and an additional 200,000 follow the tweet stream from the event. &#8220;That kind of reach gets a sponsor\u2019s attention,&#8221; chuckled Hood.<\/p>\n<p><strong>NDR gone too far?<\/strong><\/p>\n<p>While some worry that associations may push the NDR needle too far, Naylor\u2019s Underwood said advertising and sponsorship should be seen as a member benefit, not as a nuisance. It can help members with trusted partners and save them lots of time when vetting potential vendors. &#8220;NDR needs to support your overall strategy and mission,&#8221; said Hood. &#8220;It\u2019s not just about the money. If you lose sight of your mission, strategy and purpose and how it affects members, than an NDR offering can have a negative overall impact on you.&#8221;<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>As Naylor CEO Alex DeBarr <a href=\"http:\/\/www.naylornetwork.com\/nay-adviser\/articles\/index-v3.asp?aid=214486&amp;issueID=32917\" target=\"_blank\">notes<\/a> in today\u2019s issue, &#8220;a whole new generation of middle and upper managers exists at companies in every vertical market you serve.&#8221; Their information needs, preferences and customer outreach objectives are often very different from their predecessors\u2019. You need to be highly cognizant of that, he added.<\/p>\n<p>OK. So they want what they want when they want it how they want it. Don\u2019t question it; start dealing with it. And as long as you keep your L ahead of your C, you\u2019ll find smart (and profitable) ways to surf the wave of change that keeps members and associates loyal to your organization.<\/p>\n<p><em> <a href=\"mailto:hankberk@optonline.net?subject=November%20Association%20Adviser%20lead%20story\">Hank Berkowitz<\/a> is the moderator-in-chief of<\/em> Association Adviser eNews.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How often do hear comments like these around the office or at industry gatherings? &#8220;Younger people aren\u2019t joiners.&#8221; Or &#8220;Members want everything so customized these days, I\u2019ve got 10,000 packages for 10,000 members.&#8221; Or &#8220;We need to show \u2018em ROI on every single benefit these days.&#8221; Or how about, &#8220;They want what they want when they want it exactly in the format they want it.&#8221; If so, you\u2019re not alone.<\/p>\n","protected":false},"author":24,"featured_media":921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,3],"tags":[145,27,32,146],"class_list":["post-1611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-revenue","tag-macpa","tag-non-dues-revenue","tag-revenue-2","tag-technology-association-of-georgia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Need More Non-Dues Revenue? 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