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. Increasingly, associations are opting for non-dues revenue as an alternative or supplemental business model. How to increase non-dues revenue is a conversation we often have. At Amarki, a large part of our business is partnering with State level and local level associations of any size.
The questions we hear are typically the same and always seem to revolve around “As an association, how can we provide more value to our members?” or “How can we increase revenues outside of member dues?”.
Regardless of the questions asked, the answer is the same; you should consider introducing Member Benefits to your association members. It seems obvious to some, but surprisingly a large percentage of associations still do not have programs like member benefits running.
Member Benefits should serve a dual benefit, adding value to the association members while at the same time generating increased revenues for the association and can be broken down as follows:
PROVIDING VALUE: We know associations design their benefits programs with members front of mind. Association can partner with vendors providing value to their members in the form of access to the vendors product(s) and/or services at discounted rates. Program partners are carefully selected and vetted by your association as potentially a useful tool or service for your members. The vendor can package their product(s) and/or service for your members as either a free or discounted offer with special discounted pricing for your members. The messaging to your membership is simple, you’ve carefully selected a vendor who can help them in their day-to-day efforts, and you were able to secure special pricing.
CREATING REVENUE: For associations looking to use member benefits as a revenue stream or looking to create new non-dues revenue, the approach is similar to above. The key difference is the association would work with the vendor establishing financial terms on the partnership. Common arrangements include charging the vendor a monthly fee to market the partnership to their members or introducing a revenue share model from the vendor to cover the administrative and marketing costs incurred by the association. Depending on the size of the association, you can also consider purchasing the product and/or service for your members at a large discount and then re-selling it to your members at a premium.
Regardless of the size of your association or the support staff on your team, launching a handpicked and vetted vendor in either of the above ways does not have to require a lot of effort. An experienced vendor partnering with associations understands how to help. They can provide or create all assets and suggest marketing ideas that resonate with real estate professionals.
New challenges and opportunities for your association and its members will be faced every day. As you explore avenues to drive revenue from multiple sources, not just member dues, look beyond the traditional models. Introducing a member benefit program or adding a new vendor with services unlike any other vendor can help you better engage with your members, build stronger communities, and deliver more value.
If you would like to explore partnering with Amarki and hear how we are working with associations big and small offering our real estate marketing tool to their members, please feel free to book a meeting using the following scheduler HERE.
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About Amarki: Amarki was built by real estate experts for Brokerages and Agents based on years of industry experience and firsthand feedback. We developed a marketing tool accessible to anyone, no matter the experience or marketing budget. By providing an intuitive tool that works “for” the agent, Amarki is able to remove the complexity of marketing tasks making agents more active. We've partnered with some of the largest associations in the country and take a hands-on approach to assist with marketing and support for the greatest benefit of our partners and their members.