Indirect costs are not directly accountable to something (e.g., a particular project, facility, or product). A robust membership management software system can generate great long-term ROI for associations.
On the other hand, sub-par association membership software can be inefficient. Associations depending on outdated AMS software are often saddled with unanticipated indirect costs.
The direct costs are clear—the amount spent on the association software. The indirect costs, however, can quickly add up. A subpar AMS can result in wasted time, missed opportunities, staff headaches, etc.
Indirect costs are seldom considered when calculating expenses; they are difficult to quantify and are ignored or noticed. Reading online reviews about the best association software can be helpful when shopping for member management options.
A noteworthy excerpt from Wes Trochlil’s blog:
A client told me she was having trouble with staff turnover, especially with younger staff. When I asked her about her technology, her eyes got big, and she said: “The last staffer who left me told me in her exit interview that she was leaving in part because the technology we had made her job so hard to do.”
His client’s experience is the very definition of indirect costs with association management software.
An AMS that appears as less expensive often costs more than a robust, fully functional AMS product. Cheaper isn’t always better.