How to Increase Membership Revenue in an Association
Membership fees are a vital component of any association. It provides the financial resources for members to receive value, to support advocacy initiatives, and to invest in innovation. Increasing membership revenue, on the other hand, is not always straightforward, especially in a competitive and changing economy. Here are some ways for increasing membership revenue and growing your association.
1. Segment your members and prospects. Not all members and prospects are the same. They have different needs, preferences, and motivations for joining or renewing their membership. By segmenting your members and prospects into different groups based on criteria such as industry, role, location, engagement level, or interests, you can tailor your marketing and communication efforts to each segment and offer them more relevant and personalized value propositions.
2. Diversify your membership tiers and benefits. One size does not fit all when it comes to membership. Some members may want more access, recognition, or influence, while others may be satisfied with the basic benefits. By offering different membership tiers and benefits, you can appeal to different segments of your audience and increase your revenue potential. For example, you can create a premium or elite membership tier that offers exclusive benefits such as invitations to VIP events, access to industry leaders, or discounts on products or services. You can also create a lower-cost or introductory membership tier that offers limited benefits but serves as a gateway to higher tiers.
3. Increase your non-dues revenue sources. Membership dues are not the only way to generate revenue from your members. You can also offer other products or services that complement your membership value proposition and provide additional value to your members. For example, you can offer educational programs, certifications, publications, sponsorships, advertising, or affinity programs that generate non-dues revenue while enhancing your member experience and loyalty. Some examples of non-dues revenue are:
* Educational programs: You can offer online or in-person courses, webinars, workshops, or conferences that provide your members with relevant knowledge and skills for their professional development. You can charge a fee for these programs or offer them for free to members and charge a fee for non-members.
* Certifications: You can offer certifications that validate your members' competencies and credentials in their field of expertise. You can charge a fee for the certification exam or the renewal of the certification.
* Publications: You can offer publications such as magazines, newsletters, journals, books, or reports that provide your members with valuable information and insights on industry trends, best practices, research findings, or case studies. You can charge a subscription fee for these publications or offer them for free to members and charge a fee for non-members or advertisers.
* Sponsorships: You can partner with other organizations or companies that share your mission and vision and offer them exposure and recognition in exchange for financial or in-kind support. You can offer sponsorship opportunities for your events, programs, publications, website, social media, or awards.
* Advertising: You can sell advertising space on your website, social media, publications, or newsletters to other organizations or companies that want to reach your audience. You can charge a fee based on the size, location, duration, or frequency of the advertisement.
* Affinity programs: You can negotiate discounts or special offers from other organizations or companies that provide products or services that are relevant or beneficial to your members. You can earn a commission from each sale or referral that you generate through these programs.
4. Leverage your data and analytics. Data and analytics are powerful tools that can help you understand your members better and optimize your revenue strategies. By collecting and analyzing data from various sources such as your website, social media, email campaigns, surveys, or events, you can gain insights into your member behavior, preferences, needs, satisfaction, and retention. You can use these insights to improve your member segmentation, personalization, engagement, and retention strategies and increase your revenue opportunities.
5. Communicate your value proposition clearly and consistently. The most important factor that influences your membership revenue is your value proposition. Your value proposition is the answer to the question: Why should someone join or renew their membership with your association? Your value proposition should clearly articulate the benefits and outcomes that your members can expect from their membership and how they differ from other alternatives. You should communicate your value proposition clearly and consistently across all your channels and touchpoints and demonstrate it through your actions and results.
Here are some tips to increase fees collection:
1. Set clear expectations: Communicate the value of membership dues to your members and prospects and explain how they support your organization's mission and vision. Make sure they understand what benefits they receive in exchange for their dues and how they differ from non-members.
2. Offer flexible payment options: Give your members the choice of paying their dues monthly, annually, or in multiple installments. This can make membership more affordable and convenient for them and reduce the risk of late payments or cancellations.
3. Automate renewals: Use a membership management software that allows you to set up automatic renewals for your members. This way, you can avoid sending manual reminders and invoices and ensure a steady cash flow. You can also offer incentives such as discounts or rewards for opting into automatic renewals.
4. Provide multiple payment methods: Accept different forms of payment such as credit cards, debit cards, debit orders, or cash deposits. This can make it easier for your members to pay their dues and reduce the hassle of processing payments.
5. Remind and follow up: Send timely and friendly reminders to your members before their dues are due and follow up with them if they miss a payment. You can use email, text, phone, or mail to communicate with them and provide them with the payment details and options. You can also use these reminders to highlight the benefits of membership and the impact of their dues.
6. Offer discounts and incentives: Encourage your members to pay their dues on time or early by offering discounts or incentives such as free or discounted events, programs, publications, or services. You can also offer discounts or incentives for referrals, group memberships, or multi-year memberships.
7. Collect feedback and testimonials: Ask your members for feedback and testimonials on their membership experience and the value they receive from their dues. You can use surveys, polls, interviews, or reviews to collect this information and use it to improve your membership value proposition and marketing. You can also showcase these feedback and testimonials on your website, social media, publications, or newsletters to attract new members and retain existing ones.
Increasing membership revenue is a challenge for many associations, but it is not impossible. By following these tips, you can create more value for your members, attract new ones, and retain the ones you have. You can also leverage your data, technology, and partnerships to optimize your pricing and marketing strategies. Remember, your members are your most valuable asset, so treat them well and they will reward you with loyalty and referrals. Thank you for reading this blog post and I hope you found it useful. If you have any questions or feedback, please leave a comment below or contact me at [email protected]