Why charging for online content (mostly) won't work

Judy Shapiro has written a great article about how charging for online content doesn't generally work, but using online content to develop a community can lead to profitable revenue streams ... click here to read more.

Why your sponsorships aren't selling

Sponsorship is hot right now - for those who are providing real value to their sponsors. If your sponsorships aren't selling following could be some of the reasons why:

• The Economic Downturn - Sponsors are still out there. But the economic climate means they are looking at proposals carefully to judge the return they are getting. Are you delivering a real return back to your sponsors?
• Wrong focus - Your proposals should NOT be about what the sponsorship income will help your organisation achieve. They should be about how sponsoring your organisation will help the sponsor achieve their objectives. Trying to guilt the sponsor into partnering with your organisation will only offend.
• All those other organisations competing for the same sponsorship dollar - There are a lot of organisations out there competing for sponsorship income. Competition is part of this industry. Get to work on ensuring that you deliver better value than the rest.
• Too much time in the office - Building relationships is an integral part of generating sponsorship. If you aren't out there networking and engaging with your existing and prospective sponsors then you are creating opportunites for your competitors to get the edge. Get out there!

Feel free to add any other reasons in the comments below.

Tips for those sending "Request For Proposals"

Elizabeth Weaver has put up an excellent post giving guidance on how to put together a good "request for proposal". Well worth a read if you are looking to maximise the effectiveness of this process ... read more.

Sponsorship Spending On Causes To Total $1.55 Billion In 2009

An interesting report has been released from IEG has shown that North American companies are expected to spend a total of $1.55 billion on cause partnerships in 2009. This is a 2.2 percent increase from the $1.52 billion invested in those programs in 2008. They also found that some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest. ... read more.

Membership Marketing Benchmarking Final Report now available

Tony Rossell has released his Membership Marketing Benchmarking Final Report (you need to register on the site to get a copy). This is a US report so the findings need to be considered within the context of the US market.

There are a number of interesting findings and the entire report is worth a read. Those I found more interesting were:

• Direct mail was by far the most popular method of recruiting new members at 46% - with those who market predominately via direct mail more likely to have renewal rates of over 80%.
• The first year dues discount is the more effective recruitment incentive.
• Highly personal new member integration programs has a direct impact on retention.

They have a range of other research reports available on the website as well.

Most common methods of sourcing new members

On his Membership Marketing blog Tony Rossell recently talked about how research has found direct mail to be the most common method of sourcing new members (see: Direct mail is tops for membership). Here is where the Australian, UK and US markets seem to be quite different. In Australia and the UK traditional professional associations and industry bodies have rarely used direct mail to its full potential. Is there an opportunity here we are missing? If you've had any experience with direct mail please comment below. I'd love to hear what you have to say.

What recruitment incentives work best?

Tony Rossell has put up an interesting blog with the results of their research on what member incentives work best to encourage people to join. He's put forward his thoughts and there's been a few interesting comments in response. Well worth a read for the different perspectives. Click hear to read the article.

Articulating the value of membership

I wrote an article recently on "Articulating the value of membership" ...

It's often the same sad story. Some poor sucker asks "What are the benefits of membership". The association representative takes a deep breath and rattles out ... "We have a magazine, a website, an email bulletin, a conference, training and ... blah blah blah" WHO CARES!Those things by themselves mean pretty much nothing. They are just a bunch of features thrown together. Frankly, when it comes to hearing about the benefits of membership I need more information. I'm not making a donation to the organisation. I'm making an investment and I expect to see a return. That's why I join an association ... read more.

Support vs Sales

Brian Birch made an interesting post on the Acronym blog about how assocation management is about supporting members rather than selling membership. I thought he made some really interesting points. Click here to read the article.

Charity membership - is it viable?

For industry bodies and professional associations using membership as a tool to generate revenue, provide an “opt in” customer base for products and to give it a stronger voice when lobbying is a logical step. For charities and other public benefit organisations it is somewhat different. Membership is just one of many tools that can be used to both generate revenue and to gather a database of people interested in supporting your organisation. If you are thinking of a membership structure for your organisation then you may like to consider the following:

• Use appropriate language - If you need members to contribute funds, time or other resources to the cause consider calling them “supporters” rather than “members”. When you use the term “member” it creates the perception that the member will be receiving a personal benefit. If this is not the case then consider using the term “supporter” which more clearly defines their role within your organisation.
• 
  Consider the return from the investment – Membership is an expensive and time consuming tool, but it can reap substantial rewards when structured correctly. Sit down and work out the objectives you wish to achieve (eg: to generate funds, to build a database of potential donors and volunteers, etc). Identify all potential tools that could be used to achieve those objectives and the investment that each requires. In some cases membership may not be the most effective tool. But in others, especially where implemented correctly, it can work beautifully.
• 
  Ensure you have the appropriate back-end support – You can greatly reduce the pressure that a membership structure puts on time and resources by implementing appropriate back-end support. The benefits of a good database that is fully integrated with your website cannot be underestimated. It will greatly reduce the staff time required to manage the database, increase your accuracy and provide you with information to more closely target your messages and generate greater returns from your marketing dollar. If you do decide to invest in a good database then it is essential that you take the time to ensure that it is implemented correctly. After all, a poor database implemented well will outperform a fantastic database implemented poorly.

A fantastic example of members promoting membership to non-members

There is nothing more powerful than a personal referral for membership. One of the difficulties is leveraging this into a larger scale. So I was really pleased to find this example of a member writing a personal article in support of membership of their association. Read the article here.

You don't get the member if you don't ask the question

Membership comes in various shapes and sizes - associations, sporting clubs, gyms, etc - but the basic principle of selling a membership seem to be the same the world over ... if you want the member ... ask the queston! Here is an article that appeared in Fit Commerce on just that topic: You Sell a Health Club Membership…When You Ask.