Last Updated: April 05, 2024
Membership revenue plays a central role in the financial health of associations. When retention rates are high and there is a steady influx of new members, operational costs and other expenses are easily managed.
However, if this revenue dips, things can quickly become unpleasant. Therefore, relying solely on membership dues isn't a wise strategy.
Associations must diversify their income by developing non-dues revenue streams. In this blog, we'll explore 15 innovative ideas for generating additional revenue. Read on to discover how your association can enlarge its financial stability beyond just membership dues.
Key Takeaways
- Associations should not solely rely on membership dues for their financial stability.
- By generating additional income, associations can invest in growing their program offerings, organizing exclusive events, and providing unique member benefits.
- The additional income from non-dues revenue allows associations to reinvest in key areas such as member retention and expansion efforts.
- Associations face several challenges in growing non-dues revenue, including limited staff, budget constraints, too many unfocused ideas, reliance on membership dues, competition, and difficulty proving ROI.
- There are numerous ways to increase non-dues revenue. Starting with a few focused strategies and gradually expanding can significantly boost an association's financial health and member offerings.
What Is Non-Dues Revenue?
Non-dues revenue refers to income generated from sources other than membership pricing or dues. This type of revenue can originate from various streams beyond traditional income sources.
The non-dues revenue stream options can be:
- Event and Conference Fees: Income from hosting events, conferences, workshops, or paid webinars that members and non-members can attend for a fee.
- Sponsorships and Partnerships: Financial support from businesses or organizations in exchange for advertising, endorsements, or co-branded activities.
- Educational Programs and Certifications: Fees collected from educational offerings, certification programs, or online courses that provide additional value to members and non-members alike.
- Merchandising: Revenue from selling branded merchandise, publications, or other products related to the association's mission and activities.
- Advertising and Promotions: Income from selling advertising space in association publications, websites, and events and conferences.
Why Do Associations Need Non-Dues Revenue?
Non-dues revenue is important for the smooth functioning of associations. Associations require non-dues revenue for several reasons:
Diversify Revenue Streams
A diversified portfolio of income streams is fundamentally beneficial for associations in the long term. When associations rely solely on one source of income, they are subject to financial volatility, as revenues can fluctuate, rising in some periods and falling in others.
This variability can present significant challenges for associations, especially those with fixed operational costs. Consider a situation where membership retention dips unusually low for a year, falling to around 30%.
If an association's financial model is built around this single income stream, it would be compelled to reduce its operational costs by 30% to remain financially viable. Adjusting expenses in such a direct response to income variability is challenging and unsustainable over time.
In contrast, having multiple income streams allows an association to counter the impact of such fluctuations. If one income stream underperforms, others can potentially compensate for the shortfall, providing financial stability and reducing the need for drastic cost-cutting measures.
This approach enables associations to maintain operational and programmatic integrity, even during unexpected financial downturns in one revenue area.
Financial Stability
Multiple income streams offer financial stability to associations, empowering them to invest in growth and make strategic decisions without the constant worry of revenue inconsistencies tied to membership retention.
This diversification not only buffers against fluctuations in any single source of income but also opens up opportunities for enhancing services and expanding reach.
A stable financial foundation, helps associations confidently explore new initiatives, innovate, and more effectively respond to their members' needs, driving the organization forward in its mission and objectives.
Growing Your Program Offerings
The power of multiple income streams unlocks your potential to drive a stellar member experience for your members. The financial diversification allows you to expand your program offerings, organize exclusive conferences, and stage premium events.
Additionally, it enables innovative approaches to boost member retention and provides unparalleled benefits that set your association apart. When you have financial freedom, you're not just surviving; you're thriving, and ready to explore the vast possibilities that lie ahead and capture new opportunities.
Attracting New Members
Revenue generated from multiple sources beyond membership dues plays a central role in growing and expanding your membership base. Various strategies, including digital advertising, partnerships, seminars, and webinars, can be used to attract a larger number of members.
Research indicates that over three-quarters of U.S. organizations depend on non-dues revenue for up to 50% of their total annual revenue. Many organizations strategically reinvest this income to maximize membership retention and expand membership.
However, this reinvestment in growth and retention initiatives strengthens the organization's financial health, broadens its impact and reach, and promotes a more vibrant and engaged community.
6 Reasons Associations Struggle to Grow Non-Dues Revenue
Non-dues revenue remains a crucial aspect of financial sustainability for many associations, and achieving growth in this area can be challenging. Six notable barriers may hinder an association's ability to increase its non-dues revenue, which are as follows:
1. Small Staff
Sometimes, associations aspire to diversify their revenue streams but find themselves unable to initiate new projects due to a lack of human resources. A low staff count largely contributes to this hindrance, limiting the organization's capacity to effectively explore and implement alternative revenue-generating initiatives.
2. Low (Or No) Budget
Another common hindrance associations face when relying on a single revenue stream is the lack of budget or budget for investment in alternative income streams. This financial constraint prevents them from pursuing opportunities that could yield a greater return on investment and additional benefits.
Consequently, many associations continue to struggle, unable to break free from this cycle and explore the potential growth that diversification of revenue streams could offer.
3. Too Many Ideas
"Too many ideas spoil the show," rightly describes a scenario where associations, inundated with numerous ideas for additional revenue streams, find themselves immobilized. Rather than progressing, they become stuck, unable to capitalize on any of their potential initiatives effectively.
Despite the overwhelming desire to incorporate each and every idea, this abundance often leads to indecision and stagnation. The challenge lies not in the generation of ideas but in the prioritization and execution, ensuring that ambition does not overshadow actionable strategy.
4. Reliant on Memberships
Associations that generate revenue from membership fees often show little concern about diversifying their income through non-dues revenue sources. This lack of interest often comes from a mindset that does not want to change and wants to keep things as they are.
Such organizations may become overly reliant on their membership dues, believing that their current financial model is sufficient for their needs. This reliance can lead to missed opportunities for growth and development, as these associations overlook the potential benefits of expanding their revenue streams beyond membership fees.
5. Competition
Sometimes, the drive to outperform competitors can cause associations to focus solely on beating the competition. In their efforts to stay ahead, they may concentrate on offering more membership benefits to win the race, neglecting the potential of other non-dues revenue sources.
This single-minded pursuit can prevent them from exploring additional income streams that could strengthen their financial stability and organizational growth.
6. Hard to Prove Value or ROI
No income stream delivers immediate results; it always takes time to see returns, and non-dues revenue sources are no exception. However, associations may become impatient or struggle with tracking the return on investment (ROI) in the short term, which can be a significant barrier to adopting non-dues revenue streams.
This impatience or difficulty measuring early successes can deter associations from pursuing these additional revenue sources, even though they can enhance the organization's financial health over time.
Non-Dues Revenue Ideas
Membership dues alone are not enough to keep most associations afloat, on average they make up only 39% of an association's total revenue. On the other hand, 61% of an association’s total revenue is non-dues revenue. Non-dues revenue is generated by the association through means other than membership dues. There are many different ways to increase non-dues revenue for your association, but here are 15 different sources that we would recommend you try pursuing.
Advertisements
Offering organizations and companies advertising opportunities is a great source of non-dues revenue for your association. According to a report by Avenue M Group in 2017, 49% of associations benefit from revenue from mobile app advertising and 21% from social media advertising.
On Your Website and Mobile App
Your website and mobile app are both great platforms on which you can offer advertising space. Offering digital banners as advertising space is a savvy way for your association to bring in extra revenue.
On Your Social Media
Your social media is another platform on which you can offer organizations advertising space. However, only offer social media advertising if you have a strong following to make the fee you charge worthwhile.
Top Tip. Don’t forget to promote yourself! The most successful associations promote themselves through advertising.
Events and Fundraising
Events and Fundraising are often considered one of the top methods of generating non-dues revenue for your association. Although hosting an event can be expensive, if done well an event will more than break even and with creative fundraising ideas, you are guaranteed to blow past your goal.
Events
Events offer many opportunities to generate non-dues revenue as well as offering a premium membership experience. You can charge for events and make your members feel valued by giving them a discounted rate. You can also charge for advertisements and sponsorships as well as exhibitor booths.
Fundraising
Fundraising ideas will also help your association to generate non-dues revenue. These ideas may include raffles, door prizes or even a tournament. A fundraiser such as a golf tournament allows you to charge an entry fee for those who wish to compete and sell tickets to those who want to attend.
Top Tip. Make sure the events you’re hosting interest your members! Remember your members will be working professionals, so your events should be an opportunity for them to network.
Sponsorships
Due to the fact, your members are highly-skilled professionals, businesses will pay a premium to access them. And lucky for you, you can offer them that access while, simultaneously, generating non-dues revenue for your association. Sponsorship opportunities include events, webinars, and scholarships
Event Sponsorships
Companies will be keen to sponsor your events in order to reach your members. You can offer an event sponsor advertising on your event page as well as at the event itself. You can also offer sponsors an exhibitor booth at the event.
Top Tip. When approaching potential sponsors, remember to choose companies that fit with your values and offer your members a legitimate service.
Merchandise
Another great non-dues revenue generator for your association is selling branded merchandise. Whether you choose to produce branded T-shirts, water bottles, or notebooks, make sure your branding and messaging is clear.
Sales
Selling your merchandise year-round allows you to generate a consistent stream of non-dues revenue for your association. You could either choose to sell your merchandise online or at events. Even better, you could do both!
Marketing
Not only is merchandise an effective way of generating non-dues income, it’s also a form of marketing. Merchandise puts an association’s brand out into the world. So, essentially it’s a form of advertising that just keeps on giving.
Top Tip. Don’t just go for the obvious merchandise ideas! Think of what your members use in their business as well as their everyday life, and brand it.
Job Board
Creating a job board on your website not only gives your association another source of non-dues revenue, it also serves as a member benefit. You can use it to position yourself as a trusted source for professional development. Members then have a place they can trust to find tailored and industry-specific job postings.
But how will this increase non-dues revenue for your association? Simple, businesses will pay to list their jobs on your website. With a job board, you can offer companies access to highly qualified, highly motivated candidates.
Top Tip. Make sure your job board has good SEO, attracts advertising from prominent employers and offers advanced user-experience. Click here for more tips on how to launch a successful job board.
Educational Opportunities
Providing education opportunities for your members is the perfect source of non-dues revenue for your association. Remember your members are career-driven professionals who want to further their career and are prepared to take any opportunity to so.
E-Learning Platforms
According to Madgex Labs, the Online Learning Market is predicted to reach $325 billion by 2025. As an association with access to ambitious professionals constantly looking to improve their career, this is something you should take advantage of. Running online courses with a registration fee is a clever way to generate non-dues revenue while at the same time providing value for your members.
Certification
With the job market becoming increasingly competitive, professionals in your industry want to ensure they have the best credentials. Therefore, offering certifications and accreditation programs is a great source of non-dues revenue for your association.
Courses, Workshops, and Seminars
Courses, workshops, and seminars are another way of generating non-dues revenue. Not only do they offer your members the chance to improve their industry knowledge, they also give them the opportunity to network.
Top Tip. Use these educational opportunities as a way to keep your members up-to-date about the latest in the industry. This will add even more value to the educational courses you offer and encourage more members to sign-up.
Monetize Data
A growing number of associations are monetizing their data to generate non-dues revenue. They are monetizing their data in the form of market intelligence, benchmarking data, data analytics, and custom research.
Market Intelligence
Selling market intelligence is another good source of non-dues revenue for your association. A report by Avenue M Group found that 25% of associations derive revenue from benchmarking data and 19% earn revenue from selling market intelligence.
Data Analytics
Data analytics can also be used to increase non-dues revenue, either from selling them on or using them to improve your association’s marketing. Data such as Members’ past transactions, demographics, and the benefits and content they consume online can give you clues about what your members are interested in and willing to pay for.
Top Tip. All associations already have all their member data, but many don’t know how to organize or use it effectively. The best way to get on top of your data is with membership software. Check out Glue Up’s Event and Membership Management Software to see how we can help you effectively use your data.
Publications
Whether you’re trying to generate non-dues revenue or not, producing a monthly newsletter is a must. So, you’re probably already doing this. But if you have the resources, you may also be able to publish a quarterly or yearly magazine for your association.
Magazine
Having an association magazine is an excellent source of non-dues revenue. You can charge companies for advertising space and, on top of this, you can charge non-members a subscription fee. A magazine is also a key marketing tool for your association as it’s another method through which you can promote yourself.
Top Tip. Although print may be in decline, according to the Association Publishing Survey, 88% of associations still consider publications an important source of revenue.
Premium Content
By posting premium content you can become a go-to source of information for your members. Nowadays, there are many different platforms on which you can post your content and attract new, potential members. However, the platforms that have seen the most popularity in recent years are podcasts and YouTube.
Podcasts
In 2018 at least 112 million Americans were listening to podcasts every month, 11% more than in 2017, with 67 million. Podcasts are an affordable way to drive content and engage members, as well as generate non-dues revenue.
YouTube Channel
YouTube is a great platform that you can use to promote yourself, whether you’re posting interviews with leading experts in your field or how-to videos. Moreover, YouTube allows you to produce a live feed with up to 6 cameras, for little to no cost. This means you can do live telecasts at your events.
Top Tip. Podcasts and YouTube also supply an opportunity to collect new membership leads. End each video or podcast with a way potential members can find out more about your association.
Discount and Savings
Negotiating special discounts and savings for your members is another way to give more value to your members and generate non-dues revenue for your association. Companies you may want to approach for discounts and savings are office supplies and insurance products like professional liability and health. But these are just suggestions, don’t think you have to limit yourself only to these!
Partnerships
Creating partnerships with companies to provide discounts for your members is a great source of non-dues revenue for your association. With partnerships, your association can earn fees for referrals, a percentage of sales, or revenue from advertising.
Top Tip. Partner up with companies that offer products or services that members need in their business or personal lives.
Membership Perks
In addition to included membership benefits, you could offer additional association member services for a fee to boost non-dues revenue. These membership perks can be offered à-la-carte or through a tiered membership.
Tiered Membership
With a tiered membership system, you could offer packages of different prices that include different benefits. Click here for ideas on what tier membership packages could include.
Renting/Leasing Your Space
As an association, if you possess space that can be leased or rented out, consider leveraging this asset to generate extra revenue. Engaging in continuous rental agreements or securing long-term clients can provide a steady stream of income. This approach capitalizes on an existing resource and contributes to the association's financial sustainability and growth.
À-La-Carte Membership Perks
With à-la-carte membership perks, certain services might work well as a free membership perk while others could be offered for an additional fee. Moreover, making these perks member-only will act as an extra incentive for potential members to join your association.
Top Tip. Associations offering tiered memberships or more à-la-carte options tend to attract more millennials interested in association membership.
Back to You
Needless to say, you shouldn't implement all of these methods at once! Start small with one or two methods and then build from there. I'd recommend starting with events, sponsorship, and advertising because it's likely that you already host events, so now make the most of them - get sponsors and find companies who want advertising space. With Glue Up's Event and Membership Management Software, you can easily plan, manage, and carry out your events. You can also track attendee and member data and in time, start using data analytics to create another source of non-dues revenue for your association.
Interested in finding new ways to improve your association's ROI? Book a demo with us, and we'll show you how!
