How to Scale Sponsored Content to Build a Recurring Non-Dues Revenue Stream

Associations looking to balance revenue generation with member satisfaction and retention face a delicate task. Most association CEOs and executives (70%) report they don’t raise dues on a regular basis. Not surprising when association leaders are concerned about members’ willingness to pay, according to McKinley Advisors — not just for dues but also for conferences, certifications, educational programs, and more.

Although raising the fees associated with these activities would generate revenue for associations, it could also put membership levels at risk. With this potential obstacle in mind, it follows that generating non-dues revenue (NDR) is the primary challenge cited by association leaders in Association Adviser’s 2023 Associations Communications Benchmarking Report.

But there is a path forward in the form of a more strategic and scalable approach to sponsored content. Most associations are already familiar with providing paid opportunities for sponsors, like native articles and sponsored webinars. The key now is to elevate and broaden these initiatives, transforming them into a significant source of revenue. Here’s how to grow non-dues revenue with sponsored content.

Sponsored content, also known as “native content” or “branded content,” is produced by an advertiser that pays for the exposure to an association’s membership. It is typically editorial-style content and appears alongside an association’s content, though, according to best practices, it is labeled as “sponsored content” or something similar.

Companies seek sponsored content opportunities like articles, white papers, ebooks, videos, and more to gain exposure when members view their materials.

Unlike other forms of advertising, sponsored content done well doesn’t have a sales-focused approach but instead strives to provide value built around brand awareness and education. This type of content can help associations build a solid, long-term and sustainable non-dues revenue stream.

Sponsors are looking for more ways to directly engage members beyond traditional advertising placements, such as print and digital display ads. Eager to leverage their subject-matter expertise, sponsors see the opportunity to showcase their expertise and position themselves as thought leaders in the eyes of an association’s members as one of the key benefits of association sponsorship, according to a recent Partnership Professionals Network/Dynamic Benchmarking study.

They often pursue the thought-leader mantle through event speaking engagements, but limiting sponsorship to these one-time opportunities is short-sighted, says Jeff Schottland, CEO of Lead Marvels. “Organizations pursue speaking arrangements at association events because they want to be perceived as thought leaders. Rightly so. These organizations do have valuable expertise they can share with members,” he says. “Sponsored content drives the same level of thought leadership but can reach a significantly larger audience online, and the opportunity exists year-round as opposed to a few days at an association event.”

Sponsored content also gives companies an edge over their competitors, says Lori Zoss Kraska, founder and CEO of Growth Owl. “Corporate sponsors know that thought leadership opportunities offering the chance to provide strategic insight for association members and stakeholders ultimately generate a competitive advantage,” she says.

It’s also mutually beneficial, adds Bruce Rosenthal, founder of Bruce Rosenthal Associates. “Thought leadership is the ideal solution for both sponsors and the association. Sponsor companies are featured for their expertise, and members benefit from this useful information,” he says.

Still, some associations are reluctant to offer sponsors paid content opportunities, fearing it may undermine their influence as “the voice of the industry,” and that their members may feel the association has “sold out” by allowing sponsored content.

These concerns are not baseless. Associations that don’t maintain ownership of sponsored content diminish their authority, and consumers who read or view paid content and find out after the fact tend to feel deceived.

Rosenthal notes, “Associations are concerned that content from sponsors will be commercial and salesy. Furthermore, if the sponsored content is in the form of a webinar or session for education credits, the association can provide guidance to sponsor companies on maintaining an educational focus.”

However, these concerns surrounding sponsored content can be readily addressed by following standards to preserve members’ trust. Keep the following three best practices for sponsored content in mind:

Historically, the most common types of sponsored content have included articles published in an association’s newsletter, print magazine, or website, as well as sponsored virtual and in-person events such as webinars, podcasts, and “lunch-n-learns.”

However, these types of sponsored content are often limited in how and when they are available and accessible to members. More systematic ways exist to leverage sponsored content at scale to achieve a more comprehensive and longer-lasting reach.

By offering a complete library full of relevant and timely sponsored content, associations can provide easy access to high-value materials that not only align directly with sponsors’ needs but offer members a tangible benefit as well.

By creating a members-only library of exclusive sponsored content, associations can drive non-dues revenue growth and enhance member experience. Lead Marvels makes this process easy and profitable for all stakeholders with its turnkey online Resource Library program.