Principled Innovation

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

Principled Innovation

Most association business models operate on a “two-sided market” pattern in which one side of the market (the membership) receives a subsidized value offer, with the subsidy coming from the more robust revenue streams provided by the second side of the market, typically advertisers, exhibitors and sponsors.

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Overcoming the association value gap: part II

Principled Innovation

Even so-called non-dues revenue streams are not the answer, as they too rely almost entirely on buyers from within “the member market.” The problem for associations is that the member market does not really exist. It is an invention designed to create artificial predictability and a sense of security for risk-averse organizations.

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Serious Questions: Are associations dead?

Principled Innovation

Unfortunately, even with this kind of focused effort, it is hard to escape the conclusion that some associations will die over the next decade and beyond, either because of a rapid and unrecoverable surge of market events, the irreparable harm inflicted by entrenched denial and nostalgia among leaders or some combination of the two.

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Asking different questions: MMCC 2013 edition

Principled Innovation

If you’re interested in joining this conversation and you are attending ASAE’s Marketing, Membership and Communications Conference in Washington, DC on Tuesday, June 4, 2013, I will be speaking on the topic, “Why Membership is Killing Association Business Models” from 10:15 am-11:30 am in Room 150B of the Walter E.

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Associations Unorthodox Shift #4: Go all in on digital

Principled Innovation

Without question, it is sensible for associations to go fully digital in all other areas of their work, including communications, finance, governing, marketing, publications and research.

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Why business model thinking matters to associations

Principled Innovation

Business model innovation demands that associations identify imaginative ways to create and deliver radical new value to their stakeholders, begin building future market share and capture sustainable revenue streams back into their organizations.

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Associations Unorthodox Shift #1: De-emphasize membership

Principled Innovation

They must be organized around a flexible combination of compelling value propositions supported by strong brand equity, robust organizational capabilities and meaningful tangible and intangible incentives that combine to create new revenue streams and grow future market share.

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