IN my post about five years ago on October 5, 2017, “Beyond Traditional Revenue Sources,” I wrote about non-dues revenues (NDRs) which associations are now opting for as an alternative or supplemental business model. Aggravated by the pandemic, the days of associations relying mainly on membership dues to survive is over.
Simply defined, NDRs are monies derived by an association other than membership dues. These fall under two types: revenue earned from vendors, advertisers and suppliers interested in reaching out to associations to promote their products and services; and, revenue obtained from charging members additional fees for conference registrations, webinars, books, professional certifications, publications, merchandise, etc.
For an update on NDRs, we were fortunate to have Teri Carden, founder and CEO of US-based 100Reviews, who spoke recently in our webinar, “Five New Ideas: Not Your Grandma’s Non-Dues Revenue.”
Here’s what’s current in the world of NDRs that I’ve picked up from Teri’s presentation:
Royalty/Affinity Programs. Products or services that members need in their business or personal lives, e.g., discounts on office supplies, car rentals, and an array of insurance products like professional liability, health, and automobile. The association usually receives royalties on the money their members spend on these programs.
Advertising/Sponsorships. Whether for events, printing, website banner advertising, or selling naming rights to an association’s conference rooms, many associations rely on advertising and sponsorships for NDR.
Education/Events. Associations rely on profits from events and education to help drive their budget. Years ago, it was common for association events to just cover their costs. Nowadays, most associations expect their conferences and educational programs to turn a profit and contribute positively to the bottom line.
Products/Services. Some associations sell physical goods such as books, manuals, logo wear, and other items. Others offer services to members and prospects such as consulting and other professional services.
Accelerator Programs.The Independent Community Bankers of America developed an accelerator program that helps community banks directly engage and partner with early-stage or startup companies, focusing exclusively on community bank product development.
Market Intelligence. Selling market intelligence is another good source of non-dues revenue. A report by Avenue M Group found that 25 percent of associations derive revenue from benchmarking data and 19 percent earn revenue from selling market intelligence.
Here are five more “not-your-grandma’s NDR ideas” from Teri:
1. Sponsored retargeting. A form of digital advertising that shows your sponsor.s paid ads to your members who have visited your website or people whose contact information you’ve already acquired, i.e., subscribers to your content.
2. Naming rights. A form of advertising whereby a company, person, or other entity purchases the right to name a facility, object, location, program, or event, for a specific period of time. Think virtual Zoom rooms, online community groups, a section of the website, document forms, etc.
3. Sponsored polls. Association questions or polls generated by sponsors for a period of time with the results being provided after poll/question is closed.
4. Review site. An online review site for products or services within your industry.
5. Virtual events. For your next virtual events, try sponsors-only track, goody box, introduce sessions, one-on-one rooms, cohorts or solution sits, analytics, video ads before and after content, sponsored happy hours, sponsored cameo from someone famous, digital DJ, etc.
Octavio Peralta is currently the executive director of the Global Compact Network Philippines and founder and volunteer CEO of the Philippine Council of Associations and Association Executives, the “association of associations.” E-mail: bobby@pcaae.org
