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Introduction
If you’re like other small staff associations, improving non-dues revenue is a top priority— the latest Momentive Software Study found that 76% of small staff associations ranked generating non-dues revenue as most important. However, you might be wondering how to diversify your current revenue streams while adding member value.
To boost your association’s long-term financial stability and increase membership benefits, read our blog for seven non-dues revenue best practices.
What is non-dues revenue?
Non-dues revenue is any form of funding your association receives from sources beyond membership dues. Non-dues revenue typically comes from internal sources, like charging your members additional fees for events, certifications, or merchandise. Non-dues revenue can also come from external sources like sponsors, advertisers, or vendors in your community.
Why your association needs non-dues revenue
Why should your small staff association invest in non-dues revenue? When you choose to diversify your revenue streams, you’ll have more ways to reach new members, pay your staff, run events, invest in software, give back to the community, and grow your organization.
Why associations struggle to grow non-dues revenue
Associations often face challenges when driving non-dues revenue. Here are the top reasons why:
1. Over-reliance on membership dues
Many associations have historically depended on membership dues as their primary source of income and may not have a strong strategy for diversifying revenue streams.
2. Limited staff and resources
Non-dues revenue initiatives require dedicated staff, time, and investment. Many small associations operate with lean teams that are stretched thin managing core member services.
3. Slow decision-making and risk aversion
If your association is like others, it’s governed by a board of directors or committees. This can lead to slower decision-making on new revenue-generating initiatives because of a lack of alignment on priorities and risk aversion.
7 steps to drive non-dues revenue
Now that you understand why it’s so important to drive non-dues revenue, it’s time to begin building a strategy for your organization. The strategy behind growing non-dues revenue can be adapted to meet your association’s unique needs.
Here are seven ideas to get started:
1. Invest in sponsorships
Sponsors are more likely to return each year if they trust your organization and feel a personal connection to your program. Sponsors should feel comfortable picking up the phone and reaching out to you, and vice versa. Strengthen these relationships by engaging in meaningful conversations beyond sponsorship agreements.
Here’s how to get started:
- Ask about your sponsor’s professional interests outside of the sponsorships.
- Show genuine interest in your sponsors’ personal lives. For example, ask about hobbies, weekend plans, or travel.
- Keep track of these details and follow up with relevant questions to show you care about your sponsors.
Understanding your sponsors’ needs is crucial to offering them valuable sponsorship opportunities and to driving non-dues revenue. Begin by conducting surveys to gather insights about your sponsors’ pain points, goals, and interests. By listening to your sponsors’ feedback, you can tailor sponsorship packages that align with their business objectives, making them more appealing and effective.
2. Host revenue-generating events
Your association can host events that provide networking and learning opportunities for your members while also generating revenue. Try offering the following:
- Annual conferences or summits with paid registrations
- Workshops and training sessions with expert speakers
- Webinars with tiered pricing for members and non-members
- Virtual networking events with sponsorship opportunities
3. Offer continuing education and certifications
Momentive Software research found that 51% of members prioritize certifications and credentials as the top member benefit. Besides being a desired member benefit, educational content is a valuable asset. Creating courses, webinars, or certification programs can establish your association as an authority while generating revenue.
Try providing the following:
- Develop online learning content for your members
- Offer continuing education courses, certification or credentialling programs
- Partner with an industry expert to create premium educational content
4. Sell association merchandise and branded products
Selling branded merchandise can help strengthen your association’s identity while bringing in additional revenue. You can advertise items like t-shirts, mugs, notebooks, and industry-specific tools through an online store or at events.
5. Leverage job boards or career services
46% of members report job opportunities as a top priority, but only 14% of association professionals report the same. Investing in a job board is a great way to offer tangible membership benefits and drive non-dues revenue.
Many associations serve as industry hubs, making a job board an excellent non-dues revenue source. Employers can pay to post job listings, and the association can offer career services such as resume reviews or coaching sessions for an additional fee.
6. Offer premium membership tiers
To drive even more non-dues revenue, consider offering a tiered membership model where members can access exclusive benefits for an additional fee. Premium tiers can include the following:
- Exclusive content, such as industry reports, white papers, or learning courses
- Priority registration for events and programs
- One-on-one mentorship opportunities
7. Grants and fundraising campaigns
Another way to drive non-dues revenue? Associations can apply for grants from foundations or government organizations to support special initiatives. Additionally, crowdfunding or targeted fundraising campaigns can help fund specific projects or causes that align with your association’s mission.
