Nondues revenue is increasingly important to associations. As more companies recognize the potential of the association market, we find ourselves evaluating proposals on a dizzying array of programs. Here are six questions to ask about any nondues revenue program:
1. Do my members really need this?
Do your members really need another credit card or another long-distance program? Maybe, but you better ask them. The most successful programs are driven by member need.
2. Does it support our mission?
The program should help you advance your association's mission. Just being "consistent" with the mission is too low a standard. Members today want their associations to focus their energy and resources on benefits that are truly important. Don't clutter up your association with low-value programs.
3. Is this a company we want as a partner?
In your members' eyes, any company you authorize to provide a benefit is an extension of the association. Get references, preferably from other associations, and be sure that the vendor will live up to your standards for quality, ethical behavior, member service and responsiveness.
4. Is there sufficient market potential to support this program over the long term?
You don't want to launch a program with great fanfare this year only to see it die next year. Do your homework to understand how large the potential market is and how much penetration you can realistically expect.
5. Can we structure an agreement that gives the association the control it needs?
Standard agreements are written from the vendor's perspective and may not give the association the information and authority it needs to control the program. Consider what type of reports you receive and how often. Be sure that the marketing will not be offensive to your members. (No telemarketing at home during the dinner hour, for example.) Retain all rights over your member list and its use. Of course, your legal counsel should review the agreement.
6. Can we make enough money to make this a worthwhile investment of association time and resources?
Even if the vendor does "everything," there is still staff time involved in monitoring the program and responding to the inevitable member questions and problems. Ensure that revenues to the association more than cover these sometimes hidden costs.
If you can't answer "Yes" to all of these questions, then say "No thanks" to this nondues revenue program.
