Principled Innovation

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Overcoming the association value gap: part I

Principled Innovation

According to the most recent edition of ASAE’s Operating Ratio Report ( ORR ), membership dues account for an average of 38 percent of total revenue for all associations. No other single revenue category comes close to reaching that number. Even in 2013, association business models based on membership rely heavily on dues revenue.

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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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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. Additional Thoughts.

Revenue 100
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Associations Unorthodox Shift #1: De-emphasize membership

Principled Innovation

Without question, it is the operative mental model behind the preponderance of association business models, even when member dues are not a major revenue stream. Indeed, the phrase, “membership organization” may well be the most orthodox description of an association’s organizational identity.

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

Principled Innovation

Even when dues payments are not a major revenue stream, the membership mindset still shapes the internal logic of the typical association business model. The typical association business model depends on member relationships that are becoming harder to maintain given today’s sky-high stakeholder expectations for value.

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Asking different questions: MMCC 2013 edition

Principled Innovation

” After all, the association derives the immediate gain of another sale and another buyer it can begin to monetize through both direct and indirect revenue opportunities.

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Associations Unorthodox Shift #4: Go all in on digital

Principled Innovation

No matter how financially successful face-to-face events have been in the past, there is good reason for concern about the long-term sustainability of these revenue streams. The Opportunity.