{"id":3296,"date":"2014-10-21T03:00:50","date_gmt":"2014-10-21T07:00:50","guid":{"rendered":"http:\/\/www.naylor.com\/associationadviser\/?p=3296"},"modified":"2014-10-21T03:00:50","modified_gmt":"2014-10-21T07:00:50","slug":"10-things-about-ndr","status":"publish","type":"post","link":"https:\/\/www.naylor.com\/associationadviser\/10-things-about-ndr\/","title":{"rendered":"10 Things You Need to Know About Non-Dues Revenue, Part 1"},"content":{"rendered":"<figure id=\"attachment_31\" aria-describedby=\"caption-attachment-31\" style=\"width: 100px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2012\/07\/Features-e1390339615618.jpg\"><img decoding=\"async\" class=\"size-full wp-image-31\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2012\/07\/Features-e1390339615618.jpg\" alt=\"Hank Berkowitz, Association Adviser\" width=\"100\" height=\"97\" \/><\/a><figcaption id=\"caption-attachment-31\" class=\"wp-caption-text\">Hank Berkowitz, Association Adviser<\/figcaption><\/figure>\n<p>Association execs offer frank insights about what\u2019s working and not working in the NDR trenches. Do you have to choose between cool and cash flow?<\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"alignleft wp-image-2502 size-full\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/02\/Tweetables-icon.jpg\" alt=\"Tweetables\" width=\"300\" height=\"65\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<ul>\n<li>Remember, we\u2019re in the association business, not the \u201cmonthly meeting-annual conference-have a dinner-solicit vendors business.\u201d<a href=\"http:\/\/ctt.ec\/96K2y\"><img decoding=\"async\" src=\"http:\/\/clicktotweet.com\/img\/tweet-graphic-1.png\" alt=\"Tweet: Assns are not in the \u201cmonthly meeting-annual conf-solicit vendors business.\u201d So what are they? #assocadviser http:\/\/ctt.ec\/96K2y+\" width=\"21px\" \/><\/a><\/li>\n<li>Every day that someone figures out how to do their job without you is a day you\u2019ve lost a member and you might never get them back.<\/li>\n<li>It\u2019s not enough just to visit accounts in person. You\u2019ve got listen to their business objectives and understand where they are in their current buying cycle.<\/li>\n<\/ul>\n<\/blockquote>\n<p>Millennials vs. Boomers? Cool vs. cash flow? Risk management vs. innovation? Just as there are more ways than ever for associations to communicate with members, it seems there are more ways than ever for associations to try to make the cash register ring. So with Boomers retiring and NextGen stepping up to fill their leadership spots, it\u2019s tempting to assume that mobile, social, video and other next BIG THINGS\u00a0will replace the non-dues revenue staples of annual conferences, print magazines, directories and member newsletters.<\/p>\n<p>Not so fast.<\/p>\n<p>Expert after expert we consulted with said the new tools and communications channels are more likely to be enhancing, rather than replacing, the legacy communication channels. It\u2019s all about finding the right balance.<\/p>\n<p>It\u2019s really about finding that \u201cequilibrium point,\u201d according to <strong>Michael Hoehn, <\/strong>president of <a href=\"http:\/\/www.cm-innovators.com\" target=\"_blank\">CMI<\/a>, a consultancy serving associations and healthcare organizations. For the past eight years Hoehn said he\u2019s heard dire predictions about annual meetings going away and that associations are going to be \u201ceaten up\u201d by social media. \u201cThere\u2019s a place for in-person [events], there\u2019s a place for digital and there\u2019s a place for social media,\u201d Hoehn added. He said the key is to keep proving value to your members. Keep helping them advance their careers and do their jobs better. \u201cEvery day that someone figures out how to do their job without you is the day you\u2019ve lost them. Are you ever going to be able to get them back?\u201d<\/p>\n<p>Experts also cautioned about making generalizations about members based solely on their age. There are plenty of Boomers quite adept at social media and plenty of Millennials who read print and use the phone. Remember that as you try to help your content shapers and advertisers break through communications clutter\u2014the No.1 association challenge for the third year in a row according to our annual association communication benchmarking report. Faxing has regained popularity for many organizations and so has the phone.<\/p>\n<p>Like many association leaders, <strong>Frank Rudd, <\/strong>head of the <a href=\"http:\/\/www.fsae.org\" target=\"_blank\">Florida Society of Association Executives (FSAE)<\/a> is not afraid to go \u201cold school\u201d and call members directly. \u201cI\u2019ve personally called 193 new members. You\u2019ve got to try all channels. Sometimes there\u2019s no answer and sometimes it\u2019s a 20 minute conversation. Of course the 20-somethings won\u2019t answer the phone, but they\u2019ll text you back right away and say: \u2018thanks for the call.\u2019 The key is to make sure you\u2019ve got a good message,\u201d he said with a chuckle. With that in mind, we reached out to association thought leaders throughout North America to take their pulse on the delicate balance between dues and non-dues-revenue.<\/p>\n<p><strong>Here are the<\/strong> <strong>10 Big NDR Questions to Ponder for 2015 and beyond:<\/strong><\/p>\n<p style=\"padding-left: 30px;\">1.<strong> Why don\u2019t more associations ask advertisers\/sponsors if they feel they\u2019re getting their money\u2019s worth? <\/strong>Our annual benchmarking study found only half (52.6%) bother to do so.<\/p>\n<h4>On an annual basis, do you interview or survey your advertisers\/sponsors to determine if they feel they are getting their money\u2019s worth with your organization?<a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q35.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-medium wp-image-3314\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q35-300x176.jpg\" alt=\"Benchmarking graph Q35\" width=\"300\" height=\"176\" srcset=\"https:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q35-300x176.jpg 300w, https:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q35.jpg 678w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/h4>\n<p><strong>Jenny Matthews,<\/strong> executive director of the <a href=\"http:\/\/www.tnsae.org\" target=\"_blank\">Tennessee Society of Association Executives (TNSAE)<\/a>, said she\u2019s personally asked every one of her annual sponsors if there\u2019s something they\u2019d like to see offered next year. \u201cIs there a way we can make the package more appealing for you? What would be the best benefit for you? We want everyone to be happy. It\u2019s a symbiotic relationship,\u201d she said.\u00a0Unfortunately, Matthews may be in the minority.<\/p>\n<p><strong>Joel Turner<\/strong>, an event manager at Naylor\u2019s <a href=\"http:\/\/www.exchangeevents.com\" target=\"_blank\">Global Exchange Events <\/a>unit, said fear has a lot to do with it. \u201cSponsorship is an intangible. I think associations know this and are afraid to ask.\u201d<\/p>\n<p><strong>Kathleen Gardner,<\/strong> Naylor business development director said she hears three common explanations from associations about why they don\u2019t ask sponsors for feedback:<\/p>\n<ol>\n<li>\u201cWe do not have the time\/staff to do the type of survey we want.\u201d<\/li>\n<li>\u201cWe\u2019ve done surveys; we get very little response and we always have the \u2018complainers\u2019 in the membership who fill out the survey and skew the data because so few people respond.\u201d<\/li>\n<li>\u201cOur members tell us we\u2019re communicating too frequently with them we just did a member survey.\u201d<\/li>\n<\/ol>\n<p>Turner, a former association ad sales rep, said it was always nerve-racking to ask an advertiser if they saw any ROI or if the saw real benefits from their sponsorship. The advertiser\/sponsor isn\u2019t always capable of gauging and measuring how their investment paid off.<\/p>\n<ol start=\"2\">\n<li><strong>Why don\u2019t more associations incorporate sponsor feedback into their pricing or media mix? <\/strong>Our research found that less than three in five associations (59.9%) bother to do so.<\/li>\n<\/ol>\n<h4>Is advertiser\/sponsor feedback incorporated into your pricing considerations, mix of media offerings or other sponsorship programs?<a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q36.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-3313\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-Q36-300x170.jpg\" alt=\"Benchmarking graph Q36\" width=\"300\" height=\"170\" \/><\/a><\/h4>\n<p>Naylor\u2019s Gardner said it can be a timing issue. Sponsorships are sold far in advance. Large sponsors often expect to receive the same deliverables that they received the previous year. There\u2019s no cut-off point to implement a new strategy, to reconfigure a package or to redesign your marketing materials.<\/p>\n<p>CMI\u2019s Hoehn said he recently met with an association client that was getting ready to put on an event. Pricing for the event was all over the board and discussions were getting \u201ca little heated\u201d about the appropriate price points. When Hoehn asked the team why some wanted to raise prices and others lower prices he discovered they had four or five different \u201cdefinitions of success.\u201d For one, the definition of success was the number of bodies that attended the event. For another, it was the <em>quality<\/em> of attendees, not the quantity that mattered, since it was a very senior level conference. But another person said it was all about attracting the right [decision makers] sponsors and exhibitors wanted to see even though sponsorship wasn\u2019t in the budget for that event. \u201cIt really opened my eyes,\u201d Hoehn said. No one had done the research to see if raising (or lowering prices) would really impact attendance at the event. I had to remind them that they were in the association business, not in the \u201c<em>monthly meeting-annual conference-have a dinner-solicit vendors business<\/em>.\u201d<\/p>\n<ol start=\"3\">\n<li><strong> If the days of gold\/silver\/bronze pricing tiers are over, then why don\u2019t more associations customize their advertising and sponsorship packages? <\/strong>Our research found that only 10 percent of associations fully customize.<\/li>\n<\/ol>\n<h4>Which of the following best describes the way your organization sells advertising and sponsorship proposals?<\/h4>\n<h4><\/h4>\n<p><a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-customized-sponsorships.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-3312\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-customized-sponsorships-300x141.jpg\" alt=\"Benchmarking graph customized sponsorships\" width=\"300\" height=\"141\" srcset=\"https:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-customized-sponsorships-300x141.jpg 300w, https:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-customized-sponsorships-768x362.jpg 768w, https:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-customized-sponsorships.jpg 811w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Naylor\u2019s Gardner said with booth space being such a priority, many associations fear they\u2019ll be perceived as favoring one sponsor over another. As Turner said earlier, sponsorship is an intangible which the sponsor doesn\u2019t always know how to measure or assess. But, as <strong>Karl Ely, <\/strong>SVP publisher, <a href=\"http:\/\/www.asaecenter.org\" target=\"_blank\">ASAE: The Center for Association Leadership <\/a>explained, that\u2019s an opportunity for your sales team to step in and be the expert.\u00a0\u201cWe\u2019re fortunate that we have a team that can go out in the field to understand the strategy of an account,\u201d he said. \u201dBut, it\u2019s not enough just to visit accounts in person. You\u2019ve got to take the time to listen to their business objectives and \u201cunderstand where they are in the current buying cycle.\u201d<\/p>\n<p style=\"padding-left: 30px;\"><strong> 4. Why do so many associations have trouble integrating their communications programs (advertising offerings)? <\/strong>Our research found that only 10 percent claim to have fully integrated programs even though our research shows associations with integrated communications consistently outperform those that don\u2019t.<\/p>\n<p>ASAE\u2019s Ely said, \u201cWe\u2019re still as strong as we ever were in print, but we\u2019ve added a whole new digital element including a daily news brief that arrives at our members\u2019 desks by 8am every day and we\u2019re getting a good open rate. Plus the advertising community has followed us into that space, so it\u2019s nice to see both the content that\u2019s being consumed and the business side (advertisers) following us into the digital space.\u201d<\/p>\n<p>On the other hand, Naylor\u2019s Gardner said many associations are short staffed. You\u2019ve got different divisions working on separate pieces of the communications program. \u201cEven with national associations, there\u2019s typically a show manager who might be producing a guide or electronic piece tied to the show and they\u2019re not communicating internally with the rest of the organization,\u201d she said. \u201cThey\u2019re not making sure that the branding and messaging is consistent across channels and that all the pieces are communicating with each other.\u201d What\u2019s more, Gardner said the technology is not always there to enable proper integration, which she said adds to the confusion and clutter.<\/p>\n<p>If the knowledge and resources are there to support integrated communications, however, the payoff can be big. &#8220;Digital and social media is critical to our work as an association,&#8221; said <strong>Susan Neely, CAE<\/strong>, president and CEO of the <a href=\"http:\/\/www.ameribev.org\" target=\"_blank\">American Beverage Association<\/a>. &#8220;Our efforts in this space have only become more robust in the last two years. We integrate digital and social platforms into all that we do \u2013 whether it\u2019s tweeting out our daily blog through <a href=\"http:\/\/www.twitter.com\/ameribev\" target=\"_blank\">@AmeriBev<\/a>, correcting misinformation through <a href=\"http:\/\/www.twitter.com\/letsclearitup\" target=\"_blank\">@letsclearitup<\/a>, creating a community with <a href=\"http:\/\/www.twitter.com\/cartchoice\" target=\"_blank\">@CartChoice<\/a> or engaging teens with <a href=\"http:\/\/www.twitter.com\/mymixify\" target=\"_blank\">@MyMixify<\/a>.&#8221;<\/p>\n<ol start=\"5\">\n<li><strong> Why do live conferences and events remain so highly valued by association members and vendors? <\/strong>Our 2014 research found that traditional conferences remained No. 1 among 20-plus media channels survey with a value of 4.68 on a scale of 5 (up from 4.39 in 2011).<\/li>\n<\/ol>\n<h4>On a scale of 1 (Not Valuable) to 5 (Extremely Valuable), please indicate how you value each of your organization\u2019s existing events:<\/h4>\n<h4><\/h4>\n<p><a href=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-value-of-events.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-3311\" src=\"http:\/\/www.naylor.com\/associationadviser\/wp-content\/uploads\/sites\/2\/2014\/10\/Benchmarking-graph-value-of-events-300x130.jpg\" alt=\"Benchmarking graph value of events\" width=\"300\" height=\"130\" \/><\/a><\/p>\n<p>FSAE\u2019s Rudd said that even though members have many educational programs \u201cthey can take in their PJs at night,\u201d there\u2019s always going to be a need for [face to face interaction]. \u201cThere\u2019s a part of our membership that craves that,\u201d he said, as evidenced by the attendance at FSAE\u2019s recent annual conference\u2014the highest in seven years.<\/p>\n<p><strong>Rita Chen Fujisawa<\/strong>, VP\/COO of the <a href=\"http:\/\/www.cahf.org\" target=\"_blank\">California Association of Health Facilities (CAHF), <\/a>said many associations are seeing some decline in their [conference] attendance, but she still sees great value in events. \u201cThat\u2019s where you have interaction with your members. At the crux of our association is the secret of relationship building\u201d and that\u2019s often what drives members to become associate members,\u201d she said.<\/p>\n<p><a href=\"http:\/\/www.casss.org\" target=\"_blank\">CASSS<\/a>, an international organization of 4,000 biopharmaceutical scientists, doesn\u2019t charge dues, but <em>does<\/em> charge members and sponsors to participate in the 10 to 14 special interest conferences it holds each year. If you participate, you\u2019re considered a member. As executive director <strong>Stephanie Flores<\/strong> explained, the conferences are designed by CASSS volunteers who recognize a need for addressing new and emerging technology and developments in the field.\u201d The volunteers will form a small committee, draw up a business plan and present it to the board. That\u2019s how several of CASSS\u2019s successful conferences have been developed over the years, she said. What\u2019s more, volunteers use their connections to gain access to [international] health authorities to sponsor CASSS conferences.<\/p>\n<p>From the exhibitor\u2019s standpoint, Gardner said there\u2019s no replacement for face-to-face interaction. \u201cGone are the days that you could simply pick up the phone, have your call answered and engage in a conversation. Associations are competing in the world that everyone else lives in today. It is harder than ever before to gain a decision maker\u2019s attention.\u201d<\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>CMI\u2019s Hoehn said you keep hearing about for-profit companies taking over what associations used to do and offer. \u201cBut, associations can get away with pretty thinner margins on things that create value for members, he said because they\u2019re not answerable to shareholders or a stock price, he added. And that sure comes in handy when you look at the stock market\u2019s recent gyrations.<\/p>\n<p><a href=\"http:\/\/www.naylor.com\/associationadviser\/?p=3300\">Click here for\u00a0five more things you should really know about non-dues revenue<\/a>.<\/p>\n<p><a href=\"mailto:hankberk@optonline.net?subject=Re: What You Really Need to Know About Non-Dues Revenue\"><em>Hank Berkowitz<\/em><\/a><em> is the moderator-in-chief of <\/em>Association Adviser eNews.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Association execs offer frank insights about what\u2019s working and not working in the NDR trenches. Do you have to choose between cool and cash flow?<\/p>\n","protected":false},"author":24,"featured_media":31,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[570,571,572,27,573,25],"class_list":["post-3296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","tag-american-beverage-association","tag-florida-society-of-association-executives","tag-integrated-marketing","tag-non-dues-revenue","tag-tennessee-society-of-association-executives","tag-twitter"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 Things You Need to Know About Non-Dues Revenue, Part 1 - Association Adviser<\/title>\n<meta name=\"description\" content=\"Association execs offer frank insights about what\u2019s working and not working in the NDR trenches. 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