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Non-Dues Revenue Discussion By Ron McElhaney, Vice President for - - PowerPoint PPT Presentation
Non-Dues Revenue Discussion By Ron McElhaney, Vice President for - - PowerPoint PPT Presentation
Non-Dues Revenue Discussion By Ron McElhaney, Vice President for Arizona Chamber Executives 56th Annual Conference 2:00 pm, Thursday, July 31, 2014 NON-DUES REVENUES are important for membership organizations ACCE study of member chambers
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ACCE study of member chambers by Chris Mead, Sr. VP of Member & Sponsor Relations:
- Range of member dues support:
48% of revenue for chambers with annual budgets below $450,000 to 27% for the largest chambers with annual budgets over $5 million.
- Other significant non-dues revenues:
Major events (29% at the smallest chambers to 12% at the largest) Economic development activity Advertising Grants & contracts Product sales AFFINITY PROGRAMS
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In the current environment, all chambers will be pressured to diversify revenue streams.
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Positive aspects of AFFINITY PROGRAMS for a chamber:
- Chamber members can obtain products/services at a favorable rate
- Value of the chamber is enhanced in the members’ view by providing "deals"
- Chamber receives a revenue stream
Negative aspects of AFFINITY PROGRAMS to consider:
- Administration of the program can be time consuming
- Resources may not be available to sell the product/service
- Small chambers may face limited returns
- Competition with existing members can create ill will or loss of membership
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Examples of chamber affinity programs:
- Credit card marketing
- E-mail marketing
- Merchant services (credit card processing)
- Energy discounts
- Phone services
- Member-to-member discounts
- Workers' compensation insurance
- Health insurance
- Overseas travel
- Office products
- Discount prescription cards
- On-line commercial real estate listings
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How do you evaluate a proposed affinity program?
- Product or service needs to sell itself
- Avoid conflict with important chamber members
- Minimize chamber staff efforts required to administer the program
- Look for continuing relationship/revenue opportunities, recognize that programs don't last forever
- Take into account promotional resources needed
- Can you reach the end user?
- Is the potential revenue stream worth the startup and maintenance effort?
- Do you have a good partner?
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