{"id":4206,"date":"2015-04-20T15:08:18","date_gmt":"2015-04-20T19:08:18","guid":{"rendered":"http:\/\/www.naylor.com\/associationadviser\/?p=4206"},"modified":"2018-02-27T21:32:56","modified_gmt":"2018-02-27T21:32:56","slug":"non-dues-revenue-cash-is-king","status":"publish","type":"post","link":"https:\/\/www.naylor.com\/associationadviser\/non-dues-revenue-cash-is-king\/","title":{"rendered":"Non-Dues Revenue: Like it or Not, Cash is King"},"content":{"rendered":"
\"Hank
Hank Berkowitz, Association Adviser<\/em><\/figcaption><\/figure>\n

Jack Welch, the former hard-charging CEO of General Electric, was famous for boiling down business strategy into basic terms. Take one of his favorites: \u201cCash is king.\u201d It\u2019s a simple and elegant philosophy that associations are following more and more whether they admit it or not. As Michael Pennington<\/strong>, EVP of the Healthcare Convention & Exhibitors Association<\/a>, explains in today\u2019s Corner Office profile<\/a>, \u201cMore and more association models are moving away from dues only. You need a diversified portfolio of revenue streams to help you weather any storm.\u201d Those storms include not only economic upheaval, but demographic shifts, technology advances and competitor disruptions.<\/p>\n

In our annual study of association communication trends in 2014, we worried that only half of associations (53 percent) were regularly asking advertisers and sponsors if they felt they were getting their money\u2019s worth. What\u2019s more, just more than half of associations (59 percent) were incorporating the feedback they got from advertisers and sponsors into their pricing considerations, and only 43 percent said they were trying to customize their advertising\/sponsorship programs to a company\u2019s specific needs.<\/p>\n

\"Tweetables\"<\/p>\n

 <\/p>\n

 <\/p>\n

When it comes to sponsored articles and videos, make sure that content leads and the brand follows.\u00a0\"RealLilTweetables\"<\/a><\/p>\n

A diversified portfolio of revenue streams will help you weather economic downturns, demographic shifts and competitor disruptions from within and outside your industry.\u00a0\"RealLilTweetables\"<\/a><\/p>\n

Savvy conference and trade show organizers are taking a year-round view of their events.\u00a0\"RealLilTweetables\"<\/a><\/p>\n

Keep tabs on all the new ways to connect with members, but don\u2019t underestimate the power of legacy channels, such as print, live events and newsletters.\u00a0\"RealLilTweetables\"<\/a><\/p><\/blockquote>\n

Well, the message seems to be getting through. According to early results of an unscientific poll of Association Adviser<\/em> readers, half of respondents (50 percent) said advertising and sponsorships would be their single fastest source of non-dues revenue. Here are some of the trends we\u2019re observing with the help of industry thought leaders. \u201cIf you asked me a few years ago, I\u2019d rate NDR a 6 or 7 on a scale of 10. Today\u2019s it\u2019s at least an 8,\u201d said Pennington.<\/p>\n

Sponsored Content<\/strong><\/h3>\n

Cash may be king, but Karl Ely<\/strong>, VP and publisher of the American Society of Association Executives (ASAE), thinks content should have a seat<\/a> on the revenue throne as well. \u201cWe\u2019re looking to blend the print environment with the digital environment to create sponsored opportunities for our accounts where content leads and the brand follows. That\u2019s going to position those accounts in the sponsored content area as thought leaders in the space,\u201d said Ely.<\/p>\n

From personal experience, I know that sponsored editorials (and later sponsored video) were substantial money makers when I managed a diversified e-newsletter group at a large financial association. As long as clients kept their sponsored content (often abbreviated versions of their white papers) above board and educational, rather than salesy, the clicks and opens on that content was strong and pretty comparable to what our regular articles and videos received. We had a separate review committee, not the regular editorial team, vet the articles, and they had the right to reject any content it deemed too promotional. We also had some other basic ground rules: (a) Don\u2019t trash your competitors and (b) Don\u2019t say that your product or service is No. 1 unless it truly has been deemed so by an independent study.<\/p>\n

Year-round focus on events<\/strong><\/h3>\n

Every year since 2011, our annual association communication benchmarking study finds live events at or near the top of the rankings for associations\u2019 most valuable member benefits.<\/p>\n

\u201cI don’t believe we will ever get away from face-to-face marketing,\u201d said John Gallagher, director business development, events for Naylor Association Solutions. \u201cPeople still want to see the product work, shake your hand and look you in the eye. It’s relationship-selling, and it is powerful. Education is still key, and business on the trade show floor is still important. But it\u2019s the networking aspect of live events that really can’t be duplicated.\u201d<\/p>\n

Pennington agreed. \u201cYou can\u2019t replace the value of face-to-face interaction. There\u2019s no other way to replace body language, eye contact and a firm handshake when you\u2019re standing with someone you want to meet. Even our youngest members tell us that face-to-face is the best way to network and get business done.\u201d<\/p>\n

As the Center for Exhibition Industry Research (CEIR) concluded, nearly all (98 percent) of young exhibitors find that exhibitions deliver unique value that cannot be fulfilled by other marketing or sales channels. One-on-one conversations with exhibit personnel, with and without a product demonstration are the number one face-to-face settings of choice for young people. But, according to CEIR, you\u2019ve got to keep it friendly and inviting. Emphasis on the importance of exuding a \u201cfriendly and outgoing\u201d approach is uniquely Millennial, and at 77 percent, it is a top-ranked trait that young exhibitors look for in booth staff, CEIR research concluded.<\/p>\n

Gallagher observed that organizers of association events are thinking more like for-profit organizers than ever before. \u201cThere used to be the \u2018If you build it, they will come\u2019 philosophy, in which associations viewed their events in a vacuum\u2014a must-attend event. But there are so many alternatives offered today, that associations need to be dialed into their industry and their event needs to be in the marketing budgets of all of their exhibitors,\u201d added Gallagher. \u201cYou\u2019ve got to demonstrate ROI to your exhibitors for each and every event.\u201d<\/p>\n

As Michelle Giles explains, satisfaction with an exhibit experience isn\u2019t defined by just the event itself, but by how the host treats an exhibitor throughout the year. Keep in touch with your exhibitors and let them know how much your association values their participation. Giles advises using surveys, phone calls and other efforts to \u201csteward\u201d your association\u2019s relationship with exhibitors.
\nAccording to Giles, The New York State Association of Fire Chiefs holds its FIRE event yearly. More than 180 exhibitors have consecutively exhibited for three or more years in a row. The association (and its Naylor partners) knows what event activities and setups are important to exhibitors and attendees. NYSAFC intentionally communicates its event improvements and changes to exhibitors throughout the year and, in return, exhibitors reserve booth space year after year.\u201d<\/p>\n

Exchange events<\/strong><\/h3>\n

Gallagher said buyer-seller exchange events (aka appointment-setting events) work well for a variety of industries. They\u2019re a good way for associations to put pre-screened buyers and vendors together at a time that doesn\u2019t conflict with their annual meeting. It’s essentially \u201cspeed dating\u201d for companies and a perfect way for a busy executive to meet with a number of vendors over many different product lines. \u201cThey can knock these meetings out in a few days, which otherwise would take months,\u201d added Gallagher.<\/p>\n

Monetizing social media<\/strong><\/h3>\n

While Facebook, Twitter and LinkedIn get most of the attention, associations are learning to monetize other social media platforms they maintain.<\/p>\n

You don’t need a big promotions budget to boost non-dues revenue through visually-oriented social media, such as Instagram. She suggested taking an inventory of your visual assets to see which types of fee-based items you can promote. For your events, offer a discount on registrations available only through Instagram and showcase event speakers and photos of the venue. These snippets of information might entice members (or non-members) to attend, or to register early, and give you a jump start on estimating attendance numbers.<\/p>\n

For sponsorships, Clark says Instagram\u2019s visual platform can help you perfectly illustrate how visible sponsors could be at your next luncheon or conference, or in association materials. You can also use Instagram to help sell educational materials by posting a photo of what\u2019s up for sale and provide a link to PayPal, AffiniPay, your website or another preferred online transaction system where members can complete the transaction.<\/p>\n

\u201cSometimes a picture sells better than words can,\u201d relates Clark.<\/p>\n

Video<\/strong><\/h3>\n

Our annual research study finds that that nearly half of associations (44 percent) have already integrated video into their communication strategies, and one-fourth (24 percent) plan to integrate video within the next 12 months.<\/p>\n

According to Aaron Weisberg<\/strong>, video sales manager at Naylor Association Solutions, the streaming video platform that we\u2019ve been customizing for our association clients (Association TV) has the highest completion rates of any video clips that he has seen in his career. Weisberg reported that viewers are watching between 80 and 100 percent of [each episode].<\/p>\n

\u201cMetrics like this tell us that the user is committed to the content and interested to learn more about everything it has to offer. After 90 seconds of exposure to the\u00a0content, when that viewer clicks through to your website, he or she is ready to learn more about your product or service,\u201d Weisberg added.<\/p>\n

The Material Handling Equipment Distributors Association<\/a> has seen great success using video to enhance their educational offerings. MHEDA has used its credibility in the industry to partner with companies such as Mitsubishi, Caterpillar, and Toyota to produce a video series<\/a> about the proper use of forklifts in material handling. MHEDA\u2019s Executive Vice President, Liz Richards<\/strong>, said that video offers a \u201cshort, easy and concise way to communicate our messaging across many different types of social and electronic media.\u201d<\/p>\n

Caren Kelly<\/strong>, manager of marketing and trade shows at the Western Retail Lumber Association (WRLA)<\/a>, agreed that \u201cvideos engage people in a way that photos and text alone cannot. They give us the power to visually showcase our products and services as well as provide information in half the time. And, thanks to mobile devices, you can access the content anywhere, on any device, at any time.\u201d<\/p>\n

Career centers<\/strong><\/h3>\n

Year after year, our research shows career advancement and professional development among topics most important to association members across all industries. If you think about it, said Carrie McIntyre<\/strong>, senior director of business development for Boxwood Career Solutions<\/a>, associations have always been a career center for their members, and it\u2019s one of the main reasons people join associations.<\/p>\n

What\u2019s changing is that associations now look toward their career centers to be more than just a member benefit\u2014they\u2019re looking toward their career centers as a key driver of NDR. And employers are looking toward association career centers to find to find top candidates who aren\u2019t actively looking for a new position. Whereas most of the folks posting resumes on Monster.com are actively looking, McIntyre said only 10 to 20 percent of those checking out association career sites are active job seekers at any given time. That gives associations significant leverage in terms of how they charge employers for access to their resume databases, how they charge employers to post jobs to their sites, how much they charge for featured job listings, featured employer status, for employment ads in the association\u2019s e-newsletters and for sponsoring the association\u2019s career center.<\/p>\n

Down the road, McIntyre expects more associations to generate significant revenue through virtual career fairs and by selling salary surveys to employers and professional certification to members.<\/p>\n

AMS\u2014from cost center to profit center<\/strong><\/h3>\n

As we\u2019ll discuss in upcoming issues, many think of an association management system as a cost center, database or efficiency tool, but it can also be a revenue generator with job boards or easy-to-maintain member directors or online buyer’s guides.<\/p>\n

Brian Choate, CEO of Timberlake AMS Solutions<\/a>, told us that both member directories and online buyers guides can be monetized through enhanced listings, sponsorships and solicitations of donations.<\/p>\n

Conclusion<\/strong><\/h3>\n

As Jack Welch would say, \u201cIf you don\u2019t have a competitive advantage, then don\u2019t compete.\u201d Think about that carefully before you develop your next member benefit or send your next member communication.<\/p>\n

Hank Berkowitz is the moderator-in-chief of Association Adviser eNews.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Jack Welch, the former hard-charging CEO of General Electric, was famous for boiling down business strategy into basic terms. Take one of his favorites: \u201cCash is king.\u201d It\u2019s a simple and elegant philosophy that associations are following more and more whether they admit it or not. As Michael Pennington, EVP of the Healthcare Convention & […]<\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31,3],"tags":[612,650,703,704,705,706,50,379,707,708,267,69,709,270,27,23,710,28,711,38,70],"class_list":["post-4206","post","type-post","status-publish","format-standard","hentry","category-features","category-revenue","tag-aaron-weisberg","tag-ams","tag-association-management-system","tag-brian-choate","tag-career-centers","tag-caren-kelly","tag-events","tag-exchange-events","tag-karl-ely","tag-kelly-donovan-clark","tag-liz-richards","tag-mheda","tag-michael-pennington","tag-ndr","tag-non-dues-revenue","tag-social-media","tag-sponsored-content","tag-sponsorships","tag-timberlake-ams-solutions","tag-video","tag-wrla"],"acf":[],"yoast_head":"\nNon-Dues Revenue: Like it or Not, Cash is King - Association Adviser<\/title>\n<meta name=\"description\" content=\"Keep tabs on all the new ways to connect with members, but don\u2019t underestimate the power of legacy channels, such as print, live events and newsletters.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.naylor.com\/associationadviser\/non-dues-revenue-cash-is-king\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Non-Dues Revenue: Like it or Not, Cash is King - 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