05/26/2020

How to Diversify Your Revenue Streams

Relying solely on membership dues will have limited impact

Meeting members’ needs and their organization’s financial stability: this is what many association leaders are always working on, especially at times when the economy seems to be quite volatile. When well-managed, private companies are constantly expanding their product offerings, adding sales and marketing infrastructure, and looking for ways to increase revenue from existing sources, while at the same time seeking new customers. It is safe to say that associations have to think the same way.

By definition, associations earn most of their revenues from yearly membership fees and from services sold to members, starting with congresses, seminars and other events. In other words, association’s budget depends heavily, not to say exclusively, on members. Therefore, it is preferable to diversify alternative sources of revenues.

Membership dues are well and good, but sometimes they aren’t enough. It’s impossible to get things done without alternative association revenue sources – the ongoing financial health of your organization is at stake. Our partner PCMA has, for instance, a 7,000-member base, but they reach an audience of 50,000 – they call them their ‘customers’ – with their events. Few non-profit organizations live off the interest of a large endowment or have guaranteed sustainable multiyear revenues from any source. Thus, diversifying revenue streams is all about reducing risk and making your organisation durable. Medical associations, with their specific regulations and need for compliance, are a particular case.

Please select this link to read the complete blog post from Boardroom.