UNA

Affinity programs are a great source of diversified, non-dues revenue for associations and a useful tool for recruitment and member retention –  if done properly. Without thorough research and consideration though, an affinity program could end up bleeding your association of resources.

The resources (time and relational upkeep) it takes to implement and maintain a quality affinity program are only worth what your members can take from it. To avoid losing out on the full spectrum of added benefits an affinity program has to offer to both an association and its’ members, we have three tips to look out for when selecting and implementing the perfect affinity program for your association.

1. Form a partnership

When you chose an affinity program, more than cost-efficiencies are available to you. Most vendors offer their expertise with strategy and industry research as well as a host of other potential value adds.

In a recent article, David Frankil writes that sometimes vendors are treated unfairly. “In other words, we want your money but don’t really want you to bother our members,” Frankil writes. “That sort of one-sided approach would be toxic to any kind of business arrangement, much less an affinity relationship whereby definition you’re looking to work together closely.”  They are providing benefits to members and helping organizations generate revenue—and in so doing, contributing to the growth, success, and productivity of the association at large.

As with most partnerships, the relationship can be beneficial in both directions. Help your vendor grow and see value in your channel by allowing them insight into your association and the needs therein.  The better your provider understands your organization, the more they can adapt their program to generate revenue for your association (either with a formal partnership or in the form of increased participation at events and conferences, etc.).

When selecting your vendor, make sure it is an organization you can see yourself readily working alongside for years to come. Their program offerings, staff, and industry expertise should lend itself to advance your association’s mission.

2. Pick your supplier benefit programs carefully

This is one of the biggest pitfalls we see when associations rush to implement an affinity program, resulting in a waste of time and energy. Luckily, this loss can be easily avoided. Simply don’t settle for generic or unrelated supplier programs.

The needs of another association and its’ members can vary drastically from what you and your members need. Your affinity program should reflect that. Do some polling and research on the spend your members currently invest in the most, and cater to that need. To prevent wasting time and effort peddling programs your members do not want or need, you should carefully consider whether members find the discounts enticing or useful. When you’re looking into affinity partnerships, make sure that you’re aligning yourself with vendors that benefit your association’s vision and the needs of your members, who are at the heart of your association.

3. Market well

Similarly to Tip #1, cost-efficiencies are a definite bonus of the affinity relationship but not the only one. Some partners will offer help with marketing their programs, recruitment initiatives, and other added benefits. If an association sets up a stellar affinity program but does a lesser job telling their members about the use and allowances of the program, then it may never yield the benefits and bleed you of resources.

To avoid losing in an affinity relationship, take advantage of whatever help your partner is offering and market your program well. Consider an email campaign announcing your program and social media posts. Include highlights in your newsletters to your members. Don’t let your members miss out on the programs you have provided to help them!

At UNA Purchasing Solutions, we are dedicated to becoming a strategic partner to our associations and their members. Aiding them in the marketing process by providing them with customizable membership program packages and personalized email/social media campaigns for you to send to your members is one such benefit of our partnership, along with a host of others. All of this is included in the affinity program, for free, for any association wanting to grow and be more productive with their members.

Associations, like any other organization or business, need to make money. However, the financial landscape of Associations is much more elaborate than what meets the eye.

There is a significant segment of revenue streaming in from membership dues, but beyond that, there are several other avenues that can help bring in additional revenue. For example, revenue can come from the sale of programs or services to members and their constituents. This is known as non-dues revenue and allows Associations to be less dependent on membership dues.

Whether or not your Association hosts webinars, publishes books or has staff devoted to fundraising, there are ways to bring in the non-dues bacon. According to ASAE’s Operating Ratio Report, “associations rely most heavily for non-dues revenue on meeting and convention registration fees, exhibit and trade show booth fees, and educational program fees. Associations also conduct fundraising, often through an affiliated foundation, to support initiatives that advance their strategic plan. A commitment to fundraising means that Associations can create new programs, produce research, and fund scholarships and other initiatives that they might not otherwise carry out.”

*data source from ASAE

Alternative Association Revenue Streams

For the average Association, membership dues are the largest source of revenue, but surprisingly not by much. According to the ASAE Foundation’s Association Operating Ratio Report, 15th Edition, an average of 45.4 percent of trade association revenue flows from membership dues, while professional Associations report an average of just 30 percent. That leaves over half of the total revenue to be made up by alternative methods. These alternative sources of income can include revenue from tradeshow booth fees, event registrations, and other service offerings which are making up large shares of the revenue stream. Two emerging alternative revenue streams for Associations are affinity programs and fundraising.

#1 Affinity Programs

An increasing number of Associations are turning to affinity programs to generate non-dues revenue. An affinity program allows Associations to offer customizable discount programs to their members, at no cost to the Association. Their ability to leverage cost efficiencies as well as aid in the institutional knowledge about industries and member retention makes them a valuable asset for any Association.

Certain affinity programs offer additional support in targeted advertising and marketing. This can not only add to your non-dues revenue; it can add more value to your members and therefore make you more relevant and necessary. Steven Worth of Plexus Consulting Group notes that “once you know more about your membership, you’re able to design more ways to serve them. That’s where you’re putting yourself on the path to growth and relevancy.”

Beyond cost efficiency, implementing an affinity program can boost membership engagement and retention by offering members no-strings-attached savings that they cannot find anywhere else. UNA Purchasing offers its Association members a no-cost, easy-to-use benefits program, providing savings that can easily offset the cost of membership dues. It’s a quick and easy process to get rolling, so you can offer discounts to your members in as little as one week.

#2 Foundations, Sponsorship, and Fundraising

Another emerging option for Associations with a healthy revenue is fundraising through a growing relationship with foundations. There are many foundations out there open to investing in the right place. Approach donors with sincerity and robust data for your best chance at wooing donors to invest in your Association. Look at places like DonorsChoose.org for more inspiration on fundraising or becoming a donor.

Applying to foundations to raise funds for your Association is often easier and more profitable than one might think. Offer sponsorship options at booths or events, implement a fundraising program that helps generate additional monies, host a gala or special dinner to raise funds. In addition to any fundraising efforts that your Association may already participate in, consider opening up high-traffic areas (such as your website, social media, or newsletters) to display promotional material.

Non-Dues Revenue: The Basics for Underfunded Associations and Chapters by Bob Jonas, Managing Director at Association Revenue Solutions, cites some great ideas for sponsorship and fundraising on behalf of your Association.

Key takeaways

There are alternative methods to create additional non-dues revenue to your Association. You do not have to live in dues dependency nor do you have to strategize on your own. Partnering with a group purchasing organization can add a marketing and procurement lifeline to your Association, and with the right partner, you can find a one-stop-shop for an affinity program and member insights that will get your Association on the fast track to a healthier bottom line.

For associations, managing your member organizations and trying to maintain high satisfaction comes with plenty of challenges. If you have run into any of these hurdles, it may be a sign your association could use a high-powered member benefit affinity program:

1. Need Some Marketing Help?

Not only is implementing an affinity program entirely customizable by supplier partnerships, but we’ll also create a tailored, white-labeled landing page, ready to onboard your members. The landing page will be specific to your Association and will be accompanied by automated emails marketing the new benefits to your members. We know marketing is an ongoing process, so let us help you put your best foot forward.

2. Lagging member engagement

Having a hard time getting members to engage? Give them something to talk about. Think about implementing a program that will cut back on the costs associated with their day-to-day business expenses, from travel to office supplies. Nothing get’s people engaged like saving money on a regular basis!

3. Benefits block

Continually coming up with new benefits for your members is hard. Let us take some of the burdens. By offering your members an affinity program, you are offering them a consistent stream of savings from a list of top-rated suppliers. Implement an affinity program now; they’ll thank you later.

4. Low non-dues revenue

It’s not just the members that save money with an affinity program. Some GPOs or affinity partners, such as UNA Purchasing, can return a portion of its administrative fees paid by the vendors back to the association. Your association will enjoy an additional source of revenue that can be applied back to the association– or you can return it directly to your members based on their participation volume. The savings potential is endless!

5. High member turnover

Tired of saying goodbye to members? Start building loyalty by saving your members money. By adding value to your members through a trusted discount program, you are basically putting money back in their pockets. Earn their confidence through consistent saving opportunities, making them more likely to stick around long-term.

6. Enrollment plateau

If you see a lull in membership enrollment, it might be time to spice up the value-added offering.  The more services your association offers, the more attractive your association will become to new members. Providing an affinity program to your association members will save them both time and money. This will build trust and rapport with your members in a way that can lead to significant enrollment growth.

7. Lacking leverage

Associations cannot force their members to buy products from certain suppliers. Therefore they do not have high committed volume. Without committed volume, it’s nearly impossible to negotiate an effective discount program with a vendor, from not only a pricing standpoint but also a service standpoint. An affinity program can guarantee your association committed volume by combining your orders with thousands of other businesses orders to negotiate the lowest possible rates for your association’s members.

8.Value In Question?

There is a lot of competition out there, and with the state of the economy, people are evaluating their bare-bones budget to see where cuts can be made. Don’t let your Association slip to the wayside. Prove your worth by providing a valuable overall membership package. Offer discounts on nationally-recognized providers that they can’t get anywhere else.

9. Member Satisfaction

If you find your members are hard to satisfy, maybe it’s time to implement an affinity program. From the customizable package to the extensive options, no one can keep a frown when they are saving cash!

10. Want To Save Money?

Associations and their members want to save money. Who doesn’t? By collecting the buying power of thousands of other companies’ orders, you are ensuring savings for your members. While you might not have the connections to combine all these orders, GPOs and association affinity partners do. They use the collective purchasing power of their clients to negotiate the best programs with their suppliers. If you want your Association and its members to save money, it may be time to implement an affinity program.