{"id":2683,"date":"2014-04-15T13:30:06","date_gmt":"2014-04-15T17:30:06","guid":{"rendered":"http:\/\/www.naylor.com\/associationadviser\/?p=2683"},"modified":"2014-04-15T13:30:06","modified_gmt":"2014-04-15T17:30:06","slug":"got-ndr-non-dues-revenue","status":"publish","type":"post","link":"https:\/\/www.naylor.com\/associationadviser\/got-ndr-non-dues-revenue\/","title":{"rendered":"Got NDR (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 \" style=\"margin: 3px;\" 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>Budgets are tight. Travel\u2019s a hassle. Can\u2019t justify the time out of the office, we tell ourselves. But again and again we return to our favorite annual conferences and events. Even in this hyper-connected, social, mobile, digital age\u2014or maybe because of it\u2014associations and their members still like to meet, network and learn face-to-face. Not convinced?<\/p>\n<p>For the third year in a row, live events received the highest overall rating (4.68 out of 5) among nearly two dozen member communication vehicles we examined in our annual Association Communications Benchmarking Report. No other member communication channel came close. In fact, nearly 88 percent of the 1,031 association executives who took part in our study considered their live events &#8220;very&#8221; or &#8220;extremely&#8221; valuable. What\u2019s more, nearly one in five association leaders (18 percent) told us in last month\u2019s unscientific reader poll that live events (including conferences) were their <span style=\"font-style: italic; font-size: 10pt;\">fastest-growing<\/span> source of NDR (see Did You Know).<\/p>\n<table style=\"border-collapse: collapse; width: 95%; margin: 5px; border: 1px solid black; background-color: #dcdcdc;\" width=\"\" cellspacing=\"3\" cellpadding=\"3\" align=\"center\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid black;\">\n<ul>\n<li>Our research shows only half of associations ask advertisers and sponsors if they\u2019re getting their money\u2019s worth\u2014only about 60 percent incorporate that feedback into pricing strategies.<a href=\"http:\/\/ctt.ec\/Ppk15\"><img decoding=\"async\" alt=\"Tweet: Our research shows only about 60 percent of associations incorporate advertiser feedback into pricing strategies. http:\/\/ctt.ec\/Ppk15+\" src=\"http:\/\/clicktotweet.com\/img\/tweet-graphic-1.png\" width=\"21\" height=\"21\" \/><\/a><\/li>\n<\/ul>\n<ul>\n<li>Many associations overestimate how much revenue a new NDR program will generate and underestimate how much time and resources it will require.<a href=\"http:\/\/ctt.ec\/MY7f3\"><img decoding=\"async\" alt=\"Tweet: Many assns overestimate how much a NDR program will create &amp; underestimate how much time and resources it will need. http:\/\/ctt.ec\/MY7f3+\" src=\"http:\/\/clicktotweet.com\/img\/tweet-graphic-1.png\" width=\"21\" height=\"21\" \/><\/a><\/li>\n<\/ul>\n<ul>\n<li>You&#8217;ve got to put your ego aside and reach out to other organizations for help with events and other NDR programs.<a href=\"http:\/\/ctt.ec\/axJMn\"><img loading=\"lazy\" decoding=\"async\" alt=\"Tweet: You've got to put your ego aside and reach out to other organizations for help with events and other NDR programs. http:\/\/ctt.ec\/axJMn+\" src=\"http:\/\/clicktotweet.com\/img\/tweet-graphic-1.png\" width=\"21\" height=\"21\" \/><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: bold;\">Fastest-growing sources of NDR <\/span><\/p>\n<p>For Matthew Gambill, executive director of the <a href=\"http:\/\/www.gacte.org\" target=\"_blank\">Georgia Association for Career &amp; Technical Education (GACTE)<\/a>, the fastest-growing NDR sources are sponsorship of the annual conference, plus advertising and ancillary services. &#8220;I attribute this growth to the rising interest in the constituency of our association and the students they teach,&#8221; he said.<\/p>\n<p><span style=\"font-weight: bold;\">Joseph Ricci<\/span>, CAE, president and CEO of textile and rental services association <a href=\"http:\/\/www.trsa.org\" target=\"_blank\">TRSA<\/a>, said his fastest-growing source of non-dues revenue is industry certification programs that help members market themselves by authenticating their sustainability (Clean Green) and cleanliness (Hygienically Clean) efforts.<\/p>\n<p>Professional education is also a fast-growing NDR driver for the nursing professional society <a href=\"http:\/\/www.nursingsociety.org\" target=\"_blank\">Sigma Theta Tau International, Inc. (STTI)<\/a>. According to STTI Director of Administration <span style=\"font-size: 10pt;\">Thomas Popcheff<\/span>, his organization is offering more programs and events for members to supplement their online education.<\/p>\n<p><span style=\"font-weight: bold;\">NDR wish list<\/span><\/p>\n<p>If he had more resources, GACTE\u2019s Gambill said his organization would like to focus more on social media advertising. For STTI\u2019s Popcheff, his organization\u2019s focus would be on providing more affinity programs and web advertising. They\u2019d also like to offer members sponsored professional academies and institutes. &#8220;They\u2019re popular with members, but also resource intensive,&#8221; said Popcheff. We can\u2019t do these programs without grants from corporations or the government.&#8221; And those kinds of grants are getting harder and harder to obtain, as Peter Cuthbert, head of the <a href=\"http:\/\/www.cacp.ca\" target=\"_blank\">Canadian Association of Chiefs of Police<\/a> explains in this\u00a0<span style=\"text-decoration: underline;\"><a title=\"From the Corner Office: Leveraging Research, Technology and Information Sharing to Keep Us a All Safer\" href=\"http:\/\/www.naylor.com\/associationadviser\/index.php\/corner-office-leveraging-research-technology-information-sharing-keep-us-safer\/\" target=\"_blank\">Corner Office<\/a><\/span> profile.<\/p>\n<p>For TRSA\u2019s Ricci, additional resources would enable his organization to develop more sponsorships and vendor conferences. &#8220;We are a mature industry that continues to consolidate\u2014that directly impacts the number of decision-makers,&#8221; he said. &#8220;While advertising has remained very strong and actually increased, we believe there is an opportunity to increase revenue through sponsorships of current conferences and events.&#8221;<\/p>\n<p><span style=\"font-weight: bold;\">Joint conferences and speed-dating<\/span><\/p>\n<p>The <a href=\"http:\/\/www.sampe.org\" target=\"_blank\">Society for the Advancement of Material and Process Engineers (SAMPE)<\/a> recently rebranded its largest annual trade show and conference and took on a new partner, <a href=\"http:\/\/www.acmanet.org\" target=\"_blank\">The American Composites Manufacturers Association (AMCA)<\/a> to co-host it. AMCA was once viewed competitively, but as SAMPE CEO Greg Balko explained, &#8220;They were covering a lot of the same ground and people that we were, so we decided not to have each other\u2019s lunch. We had the same mission to accomplish.&#8221; The show, now known as CAMX\u2014The Composites and Advanced Materials Expo, now attracts 8,500 attendees and 500 exhibitors.&#8221;That\u2019s a case where one plus one now equals three,&#8221; related Balko.<\/p>\n<p>As Bill Anderson, president of the <a href=\"http:\/\/www.abcga.org\" target=\"_blank\">Associated Builders and Contractors of Georgia (ABC GA)<\/a> explained, &#8220;You&#8217;ve got to put your ego aside. If associations think they can do it all alone in this day and age, they\u2019re going to be very disappointed. You have to reach out to other groups.<\/p>\n<p>Another takeaway from this discussion is that you&#8217;ve got to start thinking vertically as well as horizontally. For instance, which aspects of your events offer the most value for members and suppliers? And can those elements be leveraged into niche events and sub-groups of your market? Based on the growth of <a href=\"http:\/\/www.exchangeevents.com\/\"><span style=\"font-weight: bold;\">Naylor\u2019s Global Exchange Events<\/span><\/a> division, the answer to that question is, &#8220;Yes.&#8221; Also known as exchange events or &#8220;B2B speed dating,&#8221; appointment-based events bring pre-qualified purchasers and vendors together for one-on-one dialogues at a pre-set time and location. A typical setup is two-dozen appointment desks in the same room, with each vendor having eight to 10 meaningful dialogues with highly qualified buyers.<\/p>\n<p>TRSA\u2019s Ricci agreed. &#8220;Our members dominate the market (nearly 95 percent market share) and based on their size and number of decision-makers, we believe there is an opportunity to create a speed-dating style program to directly connect associates (vendors) with industry leaders.&#8221;<\/p>\n<p><span style=\"font-weight: bold;\">Avoiding common NDR mistakes<br \/>\n<\/span><\/p>\n<p>While opportunities abound, our experts warned that NDR dollars don\u2019t just fall out of the budget tree. STTI\u2019s Popcheff said many associations overestimate how much revenue a new NDR program will generate, especially early on, and they underestimate how much time and resources the programs require. More importantly, associations tend to underestimate how much member dissatisfaction results from an ill-conceived NDR program.<\/p>\n<p>According to Ricci, another common misstep is not understanding what your members, vendors and partners really want from you and underestimating the potential brand fallout the results from pursuing too many non-dues revenue sources. &#8220;I agree,&#8221; said Gambill. There\u2019s often a &#8220;failure to research the programs and opportunities adequately.&#8221;<\/p>\n<p><strong>Print still valued, but must evolve<\/strong><\/p>\n<p>While the demise of &#8220;dead tree media&#8221; has been predicted for years, our annual benchmarking study finds that among 1,031 association leaders surveyed, print media still has an average value rating of 4.01 on a scale of 5, including print magazines which weighed in at a healthy 4.20.<\/p>\n<p>&#8220;Our direct revenue for print advertising has reached a 10-year high,&#8221; reported TRSA\u2019s Ricci. &#8220;But while the publications are valued, there is definitely a push toward alternative advertising and communications such as e-newsletters, social media and other web-based opportunities,&#8221; he added.<\/p>\n<p>STTI\u2019s Popcheff said his organization\u2019s two long-standing journals (<span style=\"font-style: italic; font-size: 10pt;\">Journal of Nursing Scholarship<\/span> and <span style=\"font-style: italic; font-size: 10pt;\">Worldviews on Evidence Based Practice<\/span>) remain highly valued by members, but they\u2019re gradually moving from a print\/digital hybrid model to a digital only offering. &#8220;Not only will this save us money, but it will be more appealing to younger members,&#8221; he said. &#8220;It\u2019s got to be readable on the go, on a mobile device and tablet.&#8221;<\/p>\n<p><span style=\"font-weight: bold;\">Using advertiser and sponsor feedback<\/span><\/p>\n<p>According to Association Adviser\u2019s annual Association Communications Benchmarking Report, only about half (53.4 percent) of organizations ask their advertisers and sponsors if they\u2019re getting their money\u2019s worth and when they get that feedback, only about three in five associations (61 percent) incorporate that feedback into their pricing strategies. Ouch!<\/p>\n<p>Ricci said TRSA compares its ad rates and cost-per-impression ratio to what\u2019s offered by trade publications and other associations in its market. GACTE uses an electronic conference evaluation system for feedback and STTI adjusts its pricing as needed, based on competitive intelligence and feedback it gets from past sponsors and donors.<\/p>\n<p>Jim Anderson, executive director of the <a href=\"http:\/\/www.calsae.org\" target=\"_blank\">California Society of Association Executives (CalSAE)<\/a>, said that after the economic downturn, he and his team called 20 different suppliers to ask them about their goals, their budgets and how CalSAE could improve its partnership with them.<\/p>\n<p>TRSA\u2019s ad sales reps manage only eight to 12 accounts, explained Ricci, so they are able to understand each advertiser\u2019s needs more deeply. &#8220;We also use electronic \u2018bingo cards\u2019 that enable readers to request more information from each of our advertisers.&#8221; Ricci said TRSA advertisers get anywhere from 10 to 25 leads a month based on their offer and ad, and they also generate leads from their e-newsletter opens and click-throughs.<\/p>\n<p>&#8220;Email surveys are a start, but you&#8217;ve really got to reach out and touch members at your face-to-face meetings and focus groups,&#8221; explained Georgia ABC\u2019s Bill Anderson. &#8220;You&#8217;ve got to pick up the phone and talk to members\u2014a lot of people have forgotten how to use the phone. We tell members, we want you to help us determine where ABC needs to go over the next two to three years and most actually want to take the time to help out.&#8221;<\/p>\n<p><span style=\"font-weight: bold;\">Need for advertising and sponsorship customization <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"border-width: 1px; border-style: solid; border-color: #000000;\" alt=\"\" src=\"http:\/\/www.naylornetwork.com\/NAY-ADVISER\/assets\/aa%20enews%20apr%202014%20sponsorship%20graph.jpg\" width=\"322\" height=\"251\" \/><\/p>\n<p><span style=\"font-style: italic;\">Source: Association Adviser and Naylor, LLC 2014<\/span><\/p>\n<p>According to our annual benchmarking research, just 10 percent of associations fully customize their advertising and sponsorships for each partner and only about one-third (32.7 percent) offer <span style=\"font-style: italic; font-size: 10pt;\">some <\/span>customization, primarily to their best clients and partners. Ricci said TRSA addresses customization from several perspectives: (a) special product supplements that target valued audiences and that include &#8220;case study&#8221; advertorial, (b) editorial calendar development that also focuses on specific markets, including product showcases, and (c) targeted content in its monthly magazine and weekly e-newsletters that incorporates company profiles for specific machinery or products.<\/p>\n<p>As CalSAE\u2019s Jim Anderson related, &#8220;Companies told us they wanted a more customized approach for their sponsorship dollars. So we created more exclusive and intimate opportunities, for example, our quarterly CEO Lunch Series. It\u2019s free for CEOs of small associations so they can discuss challenges and issues with their peers.&#8221; A vendor sponsors the event, which covers the lunches and staff time involved. It\u2019s been a very popular member benefit, said Anderson, &#8220;but it wouldn&#8217;t have happened if we hadn&#8217;t had those conversations with our suppliers.&#8221;<\/p>\n<p><span style=\"font-weight: bold; font-size: 10pt;\">Can NDR go too far?<br \/>\n<\/span><br \/>\nGACTE\u2019s Gambill said you need to be careful about getting &#8220;over saturated.&#8221; TRSA\u2019s Ricci agreed. &#8220;If you stray too far from the brand and\/or mission of the association, NDR programs can create confusion in the market and push members to become less engaged.&#8221; STTI\u2019s Popcheff concurred that NDR can go too far if you\u2019re investing too many resources in your revenue-producing programs and not offering members enough core benefits, such as professional networking opportunities.<\/p>\n<p><span style=\"font-weight: bold; font-size: 10pt;\">Conclusion<\/span><\/p>\n<p>So, when it comes to NDR, be careful watch you wish for. You just might get it. That\u2019s why you should never stop asking your members, suppliers and stakeholders if you\u2019re giving them what they really want.<\/p>\n<p><a href=\"mailto:hankberk@optonline.net?subject=November%20Association%20Adviser%20lead%20story\"><span style=\"font-style: italic; font-size: 10pt;\">Hank Berkowitz<\/span><\/a><span style=\"font-style: italic; font-size: 10pt;\"> is the moderator-in-chief of <\/span>Association Adviser eNews.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Association leaders share do&#8217;s and don&#8217;ts for sustaining operations beyond the dues bill.<\/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":[393,394,27,395,396,397],"class_list":["post-2683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-revenue","tag-feedback","tag-help","tag-non-dues-revenue","tag-pricing","tag-resources","tag-sponsors"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Got NDR (Non-Dues Revenue)? 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