Top ways membership organisations are boosting income!
In today's fiercely competitive landscape, most membership organisations depend heavily on subscription fees as their financial backbone, while others depend on income from training, products, and services. Regardless of the direction of income, one fact remains: associations must spread financial risk and reduce the reliance on a single source of income.
Most membership organisations are structured as not-for-profits or charities and this often carries an internal mind-set or stigma of not being seen to be operating in an overtly commercial, or competitive way.
One of the biggest hurdles associations face, when it comes to operating more commercially and the key to new income generation is being able to articulate their commercial third-party value proposition.
For over 17 years, we’ve been working with membership organisations to communicate their value, identify their opportunities to grow, innovate, raise profile, increase impact and as a result generate new streams of income that can be reinvested back into the organisation to deliver on their mission. Here are some of the most effective strategies we are working on with associations.
Online Education and Training
One of the first avenues we look at for income diversification is online education and training. With the increased demand for continuous learning and professional development, offering digital courses, certification programmes, and leveraging existing content to reach a wider audience can be very effective.
Webinars and Virtual Workshops: Host live or recorded sessions on relevant topics, charging a fee for access.
Certification Programs: Develop industry-recognised certification courses that members can complete online.
E-Learning Platforms: Create a subscription-based platform offering a library of courses and resources for members and non-members, or even your employer/corporate network.
Commercial Partnerships, Sponsorships & Strategic Alliances
Strategic partnerships with businesses, educational institutions, and other organisations can provide additional revenue. From sponsorships to strategic alliances, partnerships can be highly profitable, especially since they often align with activities and events you already have planned.
Sponsorship or partnership arrangements across events, webinars, podcast series, content, research/thought leadership and publication/editorial content can generate significant income while offering sponsors exposure to a targeted audience.
Event Sponsorships: Partner with companies to sponsor conferences, webinars, and other events.
Content Sponsorships: Allow sponsors to fund specific publications, research projects, or online content.
Collaborative Programs: Work with partners to create joint initiatives that benefit both parties and also generate revenue.
Content is King – How can you make your IP, content and data work harder for you?
Membership organisations can commercialise their content, intellectual property (IP), and data through strategies like syndication, licensing and data partnerships. We aren’t talking about using/monetising membership data—that's off-limits and central to your business. But by sharing your existing content, professional bodies can leverage your valuable materials, like articles, research, industry insights and reports, out to bigger audiences through third-party platforms. This can help bring in extra cash that can be reinvested back into your business.
Licensing your IP is a smart way to generate alternative revenue off your existing content and information. By letting others ‘use’ your ‘stuff’, under specific terms, your hard-work goes further and has a bigger impact, rather than just being left sitting on your website or being shared in an edition of your magazine. Membership bodies can really take advantage of your data by teaming up with businesses that need insights into any unique datasets you might own. It’s a win-win: you can build a new revenue stream whilst also extending the reach of your content and resources.
Jobs Boards and Career Support
The opportunity surrounding careers and a jobs board can provide significant long-term ‘drip’ revenue for your organisation which leverages your industry expertise and network.
Launching a simple jobs board and charging employers and recruitment agencies for job postings, featured listings, and premium placement options can be a great way to generate significant income. It also helps you grow your non-member community by attracting job seekers and industry professionals to your site. This gives you the chance to showcase your membership benefits, training, events, and other services to a brand-new audience.
Offering extra services like resume reviews, career coaching, and advertising options for recruiters can really boost your revenue streams. If you make sure your platform is user-friendly and well-promoted, you’ll be able to position your job board as a go-to resource in your industry, connecting employers with high quality candidates. Jobs boards also aren’t as expensive and costly as many perceived in the sector. We deliver a few job boards for our clients which required under £5k up-front investment and are resulting in 5-figure income streams per annum and growing!
Membership Tiers and Premium Services
Introducing tiered membership levels can attract a broader range of members and boost revenue. By offering different levels with unique perks, like exclusive content, early access to events, and special bonuses - you can cater to a wider audience and give people more reasons to upgrade.
Freemium and Paid-for content models are also increasing in popularity. Post-Covid, many membership bodies invested in their website, CMS and membership platforms which has enabled stronger gated content options and ability to build new levels of membership/communities. Often there are groups of individuals who may ‘buy’ things from you, but will never be a full ‘member’, so think about these groups and how you can engage with them.
Tiered Memberships: Create multiple membership levels, each with its own set of benefits.
Premium Content: Offer exclusive articles, research reports, and webinars to premium members.
VIP Access: Provide early or priority access to events, special meet-and-greets, and networking opportunities.
An example of this was when we undertook a content strategy project with the Association of Project Management. They had a huge audience of people who purchased ‘project management for beginners’ or needed a short-course in project management for their role, btu they were never going to be come a fully fledged project manager themselves as a career. APM created a unique suite of services, events and information for these types of people who did some elements of project management in their role or wanted to develop those skills, but were never going to become a FAPM or MAPM member.
Consulting Services
Offering a consulting service to your corporate or employer members can be a great way to boost your revenue, especially by tapping into the expertise you already have. If you’re already giving out support or advice, you might as well turn that into a paid service or create a special offer to bring in some extra funds. While many commercial firms offer similar services, you’ve got the advantage of being an independent, not-for-profit organisation with a solid industry reputation, so you can offer something a bit more unique.
For example, NSPCC shaped a dedicated safeguarding service for corporates, building on their brand, decades of experience and standing in the industry which provides a strong revenue stream which they reinvest back into their charity to continue their mission and purpose. Many commercial organisations provided a competing safeguarding service, however NSPCC were able to stand a head above the rest, due to their not-for-profit status, long standing reputation and experience in all the work they do on the coal-face, making their consulting service a much stronger option – especially as a charity and the benefits this brings corporates when purchasing services from a NFP.
Grants and Donations
Looking for grants and donations can be a great way to boost your finances, especially if you're a non-profit. Many foundations and government agencies offer grants for various projects, research, and initiatives, giving you a chance to get extra support for what you’re working on.
Grant Applications: Apply for grants from foundations, government agencies, and other sources.
Fundraising Campaigns: Launch campaigns to solicit donations from members and the public.
Crowdfunding: Use platforms like Kickstarter or GoFundMe to raise funds for specific projects or initiatives.
Digital Products and Services
You can really boost your income by diving into digital products and services! Think e-learning courses, webinars, digital publications, and online communities.
Host webinars with industry experts and charge for access or secure sponsorships. You can sell digital products like e-books and research reports either individually or through subscription plans. Set up exclusive online spaces or forums where members can connect, share insights, and get professional support. Not only can you make money through membership fees or sponsorships, but you’ll also enhance your value and keep members coming back for more.
E-Commerce and Merchandise
Offering branded merchandise and other products can be a lucrative revenue stream, depending on your industry and the relevance to your members and wider community. From apparel to office supplies, members often appreciate the opportunity to show their affiliation with their membership organisation or the industry they work in.
Branded Merchandise: Sell items like mugs, notebooks, calendars or even useable books and resources, with the organisation's logo.
Digital Products: Offer digital downloads such as templates, guides, and e-books.
Exclusive Member Deals: Provide members with discounts on products and services through partnerships with retailers.
Endorsements and Accreditation Schemes
You can tap into a new revenue stream by setting up a solid endorsement and/or accreditation scheme. By offering endorsements, you let your credibility and reputation back products, services, or professionals that meet your standards, often for a fee. This not only brings in money but also boosts the perceived value of the endorsed items and gets your brand in front of new audiences.
Make sure your accreditation scheme has clear criteria and a straightforward process for certifying what meets your standards. You can charge fees for things like applications, evaluations, and renewals. This setup not only creates a steady income stream but also strengthens your organisation’s authority and prestige, making your endorsement or accreditation something people really want.
We worked with the Chartered Society of Physiotherapy to introduce an endorsement scheme for mattresses and office chairs – two areas which are linked directly with spine and back health. They were well placed to create a robust criteria system and organisations could apply to be assessed against strong physio practices and then apply a ‘CSP approved’ badge to their products – but most importantly to their tenders and bids. Many organisations saw a strong interest and uptake based on CSP’s support of their product.
Giving Away Your Value
We observe many associations missing income generating opportunities or giving away what could be an income generating activity for free. We see many examples where an association has a genuine opportunity to generate income, however due to time, resource, capability and confidence, its often easier and quicker to ask a third party to run the activity on your behalf which can often lead to a partner organisation keeping all the associated income from the activity themselves. We advocate commercial partnerships, but not one where the association is being taken advantage of or disadvantaged financially. This links to our earlier point of knowing exactly what your value is a third-party.
Looking Ahead
Diversifying income streams is essential for the sustainability and evolution of membership organisations. By embracing innovative strategies such as online education, content commercialisation, accreditation schemes or new service avenues, membership organisations can reduce their reliance on traditional revenue sources and build a more resilient financial foundation.
Income generation doesn’t sit in silo’s, we can guarantee, from experience, that the highest levels of income happen by planning strategically, joining up the dots and working cross organisationally.
Thinking ‘outside the box’ on both new income opportunities and cost savings will keep your finance team happy, boost your bottom line and will enhance the value you provide to members, your wider customers, boost engagement and increase your influence in the industry.
Ultimately the key to successful income diversification for your association is knowing your organisations worth to members, wider community and external third parties and having the ability to recognise opportunities and ability to negotiate and proceed with your income diversification strategy with confidence.
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