Voices from across the association spectrum are talking up the idea of non-dues revenue. Now, while few associations have completely done away with dues as a revenue stream, and some (think trade associations) may always be reliant on dues, there is no doubt that many associations can achieve much greater levels of financial success by developing mission-driven non-dues revenue programs.
All associations exist to support and enhance the success of their membersThe way individual associations enhance their members’ success will vary – in some cases it may be through market development or lobbying congress, while others may provide credentialing or other forms of training to build the skills and credibility of members — as individuals and collectively.
It is the collective “good” done by an association that defines its mission. By growing the number of members served, an association’s mission is elevated and made more valuable. It is all about brand and market. And, it’s also why the most effective non-dues revenue programs are mission-driven.
In the article “Six Honest Associations Execs: Part II” in Associations Bisnow, they included a story about Bisnow’s Association CEO Roundtable, held in Washington, DC, where there was much talk about generating non-dues revenue.
Building Owners and Managers Association president Henry Chamberlain says one way his association has grown revenue is through the launch of a building rating program — the BOMA 360 Performance Program — for members to demonstrate the sustainability and high performance of their properties.
American Moving and Storage Association CEO Linda Darr says the number of moves between 2002 and 2012 has dropped 25%. (Yet it still seems like our friends are always asking.) The association looked at its biggest challenge: rogue players that had entered the market. The organization launched a mover program with a code of ethics certification to help members bring in more customers.
American Land Title Association CEO Michelle Korsmo says her organization set up some industry standards that can be used by lenders who have to follow complicated regs. It’s allowed the organization to create value for members and grown the organization by generating products around those set of standards.
These are all great examples of how associations are employing mission-driven approaches to growing non-dues revenue.
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Published by Arj Devadas, VP of Sales & Marketing, ACGI
