Principled Innovation

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Five reasons why membership is killing association business models: Part II

Principled Innovation

Many associations are struggling to grow their memberships, while many third-party financial supporters are bypassing associations by establishing direct relationships with buyers and influencers using more cost-effective social and mobile platforms.

Revenue 100
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Five reasons why membership is killing association business models: Part I

Principled Innovation

As a result, most associations tend to offer only “pay-to-play” membership relationships, even though current and future stakeholders often have free or low-cost access to a variety of “good enough” and superior alternatives for building networks, retrieving information and pursuing learning.

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Associations Unorthodox Shift #4: Go all in on digital

Principled Innovation

This kind of digital value creation platform will provide associations with substantial real-time data to inform strategic and operational decision-making, help streamline the cost structure of association business models and increase their long-term profitability through the creation of data-enriched “smart value.”. Additional Thoughts.

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Associations Unorthodox Shift #3:Eliminate budgets

Principled Innovation

Moreover, the inflexible constraints of traditional budgets constantly place association CEOs and C-Suite executives in the difficult position of having to justify to boards how dynamic external forces wreak havoc with fixed internal agreements around both revenue streams and costs. The Opportunity.

Revenue 100
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Five reasons why membership is killing association business models: Part III

Principled Innovation

Reason #5: Membership-centric business models require a significant investment of human effort for an insufficient return. Associations use a variety of high-touch (and often more costly) methods to recruit and retain their members.

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Overcoming the association value gap: part I

Principled Innovation

But the problem with not increasing dues is that, if expenses still rise, every year of static dues digs the association deeper into a hole to be climbed out of later, either through cutting costs, attracting a lot of new members, or raising dues.