I recently attended a webinar on “How to Diversify and Increase your Revenue Stream?” organized by the Answers for Associations, an Australian online community of associations. It was presented by Deanna Varga, managing director of Mayvin Global, a consultancy specializing in the delivery of commercial and revenue generation solutions for associations, tourism, business events and the arts.
As I expected, there were many webinar attendees since revenue generation and diversification are among the most challenging aspects of association management. Typical revenue generators for associations include membership subscription, member and non-member purchases, education and accreditation, sponsorship, networking events, awards and recognitions, donations and grants, and others like publication sales, and advisory service fees.
The pandemic, however, disrupted the revenue intake of almost all associations as many meetings and events were cancelled, postponed, or became virtual; membership dues were delayed, paid in instalments or unpaid; sponsorships and grants reduced or withdrawn, among others.
And so it was interesting to note Deanna’s use of the phrase “navel gazing,” which she referred to as “looking from within” your association and asking your Board, members and staff for ideas and solutions on revenue generation. Indeed, starting from within provides an association the impetus to learn and solve problems first by themselves before looking for solutions elsewhere.
Here are eight tips Deanna gave on increasing and diversifying revenue streams via navel gazing, with my own inputs based on my experience with associations in the country:
1. Ask your members. Do a survey, assemble a focus group, or make interviews, as your members have ideas and can provide suggestions on what to do. They can also become donors to your association when asked.
2. Listen and act. Do something with the information you got from your members. Leverage on this data, mine it, and use it to develop other sources of income.
3. Engage your members. Are they actively engaging with your association? Volunteering for the board or committees? Participating as experts? Speakers? Doing project work?
4. Consider giving out free options. Options such as webinars, publications, articles, blogs may be used to derive data as an opportunity to develop a lead pool and incremental revenue.
5. Advocating for members. This is not necessarily for lobbying, but building loyalty and a community.
6. Data analytics. Use your association’s data on members to know them better and serve them well.
7. Partnership/sponsorship. Tap collaboration opportunities with members, donors, subscribers, vendors and other stakeholders.
8. Budgets. Ensure resources (people, technology, funds) are managed appropriately and that there is sufficient excess of revenue over expenses (net profit).
Navel gazing, in some respects, may connote excessive preoccupation, self-absorption, or contemplation on a single issue. Taken in the context of harnessing internal capacities, however, it could be a good thing.
The column contributor, Octavio ‘Bobby’ Peralta, is concurrently the secretary-general of the Association of Development Financing Institutions in Asia and the Pacific, Founder & CEO of the Philippine Council of Associations and Association Executives and President of the Asia-Pacific Federation of Association Organizations. The purpose of PCAAE—the “association of associations”—is to advance the association management profession and to make associations well-governed and sustainable. PCAAE enjoys the support of Adfiap, the Tourism Promotions Board, and the Philippine International Convention Center. E-mail: obp@adfiap.org.
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