While most associations rely heavily on member dues as their main source of revenue, we will continue to see a shift toward adding non-dues and passive revenue streams in the coming years. Diversifying your revenue stream will assist with financial stability, especially in uncertain economic times, post-pandemic.
Profit-Share Partnerships
One way to bring in new sources of revenue is to seek out professional service providers that you can market to your members. Services you can partner with that can drive passive revenue for your association include white-box career centers, branded merchandise stores, continuing education libraries and other services that would be beneficial to your members. Depending on the provider, you can typically expect to secure a 25-40% profit share. Some are tiered based on performance, increasing as more revenue is generated, and some profit share splits flip, meaning if you generate the sale conversion based on your marketing efforts, you receive the larger profit share.
High-Visibility/High-Impact Sponsorships
The number two revenue source for most associations is annual conference/meeting registrations and sponsorships. As we continue to move further and further beyond the pandemic, vendors are more than eager to get back in front of your members, in-person. But what about the rest of the year after the conference is over? Associations should take this opportunity to enhance their sponsorship packages to include deliverables that are year-round. A few ideas that you can add to your packages include dedicated/sponsored social media posts and email campaigns; banner ad placement on your association homepage; or sponsored content in your digital newsletter. Adding highly visible benefits to your packages also adds value to your sponsors and revenue to your bottom line via increased sponsor fees.
Higher Member Dues a Non-Starter
A common misconception made by boards is increase member dues and our bottom line will increase. This may be true in the short-term, but if you increase dues, you risk pricing out members in tight financial situations or members that have multiple association memberships. Also, if you don’t add value to your membership program, you risk creating negative sentiment among your members, which can impact member retention.
Revenue generation and diversification is not a one-size fits all strategy. What works for one association may not work as well for another. If your members require continuing education (CE) and you add a CE provider, you’ll likely see a revenue boost. But if your members do not value or need CE, adding a CE partner will not be as beneficial. You know what your members value, so do what makes sense for your association. Lastly, be flexible and be willing to adjust your strategy.