Non-Dues Revenue Discussion By Ron McElhaney, Vice President for Arizona Chamber Executives 56th Annual Conference 2:00 pm, Thursday, July 31, 2014
NON-DUES REVENUES are important for membership organizations
ACCE study of member chambers by Chris Mead, Sr. VP of Member & Sponsor Relations: • Range of member dues support: 48% of revenue for chambers with annual budgets below $450,000 to 27% for the largest chambers with annual budgets over $5 million. • Other significant non-dues revenues: Major events (29% at the smallest chambers to 12% at the largest) Economic development activity Advertising Grants & contracts Product sales AFFINITY PROGRAMS
In the current environment, all chambers will be pressured to diversify revenue streams.
Positive aspects of AFFINITY PROGRAMS for a chamber: • Chamber members can obtain products/services at a favorable rate • Value of the chamber is enhanced in the members’ view by providing "deals" • Chamber receives a revenue stream Negative aspects of AFFINITY PROGRAMS to consider: • Administration of the program can be time consuming • Resources may not be available to sell the product/service • Small chambers may face limited returns • Competition with existing members can create ill will or loss of membership
Examples of chamber affinity programs: • Credit card marketing • E-mail marketing • Merchant services (credit card processing) • Energy discounts • Phone services • Member-to-member discounts • Workers' compensation insurance • Health insurance • Overseas travel • Office products • Discount prescription cards • On-line commercial real estate listings
How do you evaluate a proposed affinity program? • Product or service needs to sell itself • Avoid conflict with important chamber members • Minimize chamber staff efforts required to administer the program • Look for continuing relationship/revenue opportunities, recognize that programs don't last forever • Take into account promotional resources needed • Can you reach the end user? • Is the potential revenue stream worth the startup and maintenance effort? • Do you have a good partner?
CALL ME if you discover the next big-time Affinity Program!
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