Not All Sources of Non-Dues Revenue Are Equal: A 7-Step Guide for Association Leaders to Evaluate NDR

For associations, forging strong connections with members is paramount to their success. In fact, the No. 1 reason members do not renew their memberships is a lack of engagement with their organizations, according to Marketing General’s 2022 Membership Marketing Benchmarking Report.

Consequently, any new NDR solution should provide tangible value for members and help drive deeper engagement.

Associations that successfully engage members offer a host of valuable benefits, such as networking opportunities and the chance to advocate for important industry issues. And with live events still on the rebound, forward-thinking associations are developing more digital content, including professional development resources and educational information.

Beyond driving revenue, associations should consider whether an NDR solution offers unique and actionable intelligence about their industry as well the professional needs of their members. Ask yourself: Does the revenue opportunity help foster a deeper understanding of key issues and reinforce your organization’s status as a thought leader? If not, it may be best to move on.

Opportunities that offer key insights on member needs arm association leaders with intelligence that can influence ongoing member programming and, in the process, add more member value.

Nearly every industry is undergoing rapid change. Associations that stay highly attuned to evolving member needs reinforce their leadership and status as the “voice of the industry.”

Associations are under enough internal strain, including personnel shortages and financial restraints. According to the 2022 Association Benchmarking Report, 43% of member engagement teams feel understaffed. On top of that, one in five respondents to PCMA’s 2022 Salary Survey reports that members of their staff have been furloughed or terminated.

Given these resource constraints, it’s imperative that new revenue initiatives don’t pose an additional burden on internal resources. Ideally, new solutions should not require additional staffing or a significant reallocation of resources. Otherwise, it may detract from an association’s core mission.

A solution that requires an association to tap its savings can be a risky investment. This is especially true now, as organizations are using available funds to launch new member programs to grow engagement and loyalty. The best NDR solutions offer minimal or no up-front investment.

In addition to offering a fair level of income as part of the value exchange, look for solutions that enable you to leverage efficiencies by aligning with current organizational activities.

It’s a competitive market, and sponsors have many options when it comes to how they allocate their marketing budgets. To stand out in such a crowded field, associations must offer sponsors as much value as possible in order to retain their loyalty.

While the traditional strategy of using live events as a way to entice sponsors still has its place, those same companies, especially in today’s economic climate, need programs that serve their year-round business development needs.

As advertisers look for new avenues to reach prospective customers, associations should focus on NDR solutions that offer unique value to sponsors. This enables you to strengthen your connection and engagement with valued partners who, in turn, will benefit by supporting your organization. And members will benefit as well when they have access to cutting-edge solution providers actively participating in your community.

As important as revenue diversification has become for associations, finding an NDR solution that is repeatable is just as critical. Bumps in revenue are tempting, but one-and-done programs are inefficient. You want a recurring revenue stream that can be implemented and managed without constant oversight or undue effort, freeing you up to pursue other opportunities.

In addition, if the revenue source is both recurring and predictable, it can be used to budget for other strategic initiatives that will help strengthen your association and benefit members. Again, an NDR source probably isn’t worth considering unless it helps drive your association’s mission forward.

Technology enables people to work whenever and wherever they want. And COVID-19 only propelled the trend. For many, the idea of punching a clock and sitting in a cubicle for eight hours a day now seems archaic.

Given this fundamental shift in work, associations need to focus on resources that are available to members 24/7/365 when evaluating new revenue opportunities. Leverage the convenience of your organization’s digital channels so that members can access new solutions at their own convenience. Always-on availability in your member programming is no longer a luxury, but a common expectation for professionals interested in professional development and career advancement.

There is no shortage of attractive NDR opportunities, and these solutions are becoming increasingly important in helping associations become less reliant on dues and revenue derived from face-to-face events. The criteria outlined above offer a framework to help you pick NDR solutions that not only drive additional revenue, but align with and support your organizational mission.

As you weigh your options, consider an online Resource Library as a non-dues revenue opportunity. At Lead Marvels, we’ve partnered with more than 100 associations looking for a revenue generator that meets all the criteria for an affordable, reliable, and easy-to-implement NDR solution.