Potential non-dues revenue streams

If I were to offer you a 24 carat diamond ring for $5 what would you think? My guess is you would wonder what was wrong with it. Your members will do the same thing when you offer a quality product as a ridiculously low price.If you want to create a strong, sustainable association then you need to be generating income from as many sources as possible.
Consider revenue sources such as:

• Training courses and workshops
• Conferences and trade shows
• Networking events and services
• Third party programs (such as insurance deals that give your members a discount and you an income stream)
• Online and hardcopy publications (including magazine advertising, directory listings, etc)
• Consultancy services (including industrial relations advice)
• Sales and marketing assistance
• Merchandise
• Referral fees
• Sponsorship of your events and other activities
• Advertising in your online and hardcopy publications
• Fundraising
• Grants

The key consideration when adding non-dues income streams is to ask the question – will this product or service help our members to be successful in their careers or businesses. If that link isn’t immediately obvious then you may wish to consider other services.Also, you need to leverage from each thing you do.
For example, if you run a conference you can generate income through delegate registrations, trade booths, sponsorship, sales of conference materials to those who didn’t attend, merchandise, sale of publications through a bookshop at the event, etc.

And don't forget to market your income producing products and services to non-members. It's a great way to get them engaged with your organisation with a view to becoming members. Of course, for any product or services being offered to non-members they should always be charged at a higher rate so they offer another opportunity to generate the surplus that enables you to deliver even higher levels of service!

Four common mistakes in third party programs

A popular way to generate income while also providing your members with a benefit are third party programs – such as discounts on motor vehicles, phone bills, etc. However there is a large variation in the success that organisations have had with these programs. Following are the four most common mistakes and how to avoid them:

Selecting inappropriate products –Some organisations are promoting far too many programs, under the mistaken belief that quantity of offerings will guarantee their success. If that were the case then those with the biggest programs and the most discounts would “win”. This isn’t what happens – quality will always win of quantity. Organisations with successful programs are those that have made a considered selection of a few quality products/services that they know will be of interest to their members.

Selecting inappropriate partners – Some organisations go with the first organisation that comes along. Successful organisations recognise that they are an equal partner in the arrangement and seek a partner who has a similar culture and who they know they can work well with. Your organisation has a powerful value proposition for the right partner – never underestimate how important your organisation could be in assisting your partner to achieve their corporate goals.

Creating unbalanced arrangements – In order for a program to be successful it must deliver a clear Win-Win-Win situation where you, your partner and your members all benefit from the arrangement. A clear and sustained delivery of value to all parties is integral to a successful long-term arrangement.

The organisation and the supplier don’t work together to achieve success – Some organisations sign the agreement, file it away and believe that their work is done. Getting an agreement is just the beginning. Great long term programs need an ongoing commitment to promoting the program and ensuring it works for all parties. This includes having pre-agreed update meetings throughout the term to pick up any issues and make sure that all parties are getting the outcomes they require.