Conceptually Divorcing Membership and Revenue

A man showing financial reports in a conference room. July 19, 2024 By: Avi S. Olitzky

Revenue and membership may be going their separate ways, but that can be a benefit to associations, allowing them to put the focus back on their missions.

A Shifting Paradigm

In a world where membership and revenue were historically inseparable, associations thrived on a model where dues were the primary financial lifeline. This direct correlation between membership fees and operational funding framed the fundamental understanding of value for members, who typically assessed their investment through a straightforward cost-benefit analysis. Questions such as, “Is the fee nominal, worthless, or exorbitant?” often dominated their evaluation, shaping their perception and engagement with the association.

However, today’s landscape compels us to rethink the very essence of membership. We find ourselves at a critical crossroads, challenged by evolving expectations and values of our members. It is time for associations to align with the cost-benefit driven society and redefine membership to transcend mere financial transactions.

Exploring New Models: Open and Freemium Memberships

This reevaluation suggests the potential of open or freemium membership models. By adopting these models, associations can focus on inclusivity and accessibility, broadening their base and enhancing engagement without the immediate barrier of a fee. Such approaches democratize access to the resources and networks that associations provide and reposition these organizations to leverage diverse and innovative revenue streams beyond traditional dues.

Imagine an association that embraces the power of voluntary contributions, tiered memberships, or revenue from specialized services that cater to the unique needs of different segments within its community. These strategies encourage members to contribute based on perceived value, leading to a more engaged and satisfied membership base. This shift can stimulate the development of alternative revenue vehicles, such as partnerships, sponsorships, and both product and digital offerings.

The Benefits of a New Perspective

Adopting a freemium or open membership model does more than just alter financial dynamics; it fundamentally changes how associations view their members. Members are seen not merely as sources of revenue, but as vital contributors to a shared mission. This perspective aligns more closely with the original purpose of associations—to serve a community united by common interests and goals. We can return to being in the business of serving our mission, as opposed to the rabbit hole of being in the business of being in business. By focusing on mission over money, associations can reinforce their relevance and value in the eyes of current and potential members. They can create a community that is actively engaged, deeply committed, and aligned with the association’s long-term goals and values.

Leveraging Technology for Enhanced Engagement

Moreover, this shift offers associations the opportunity to innovate in how they serve their members. Free resources such as webinars, white papers, and forums can introduce non-members to the association’s value, leading to deeper engagement and potentially converting them into paying members or contributors.

Associations can use advanced analytics to better understand which topics or services resonate most with different audience segments. This data-driven approach can guide the development of targeted content and programs, increasing relevance and value perception among members. Additionally, employing technologies like AI and machine learning can offer personalized learning paths, career guidance, and networking opportunities that are uniquely suited to each member’s professional development goals.

Embracing Change for Future Relevance

As we navigate these changing tides, the associations that will thrive are those willing to critically assess and adapt their membership models. By breaking away from the traditional dues-centric framework and moving toward a model that emphasizes value and mission, associations can ensure they remain relevant and vital in an increasingly competitive and diverse landscape. This evolution is not just about survival—it’s about redefining success in a way that respects both the heritage and the future potential of our associations.

The call to action is clear: Evaluate your association’s needs, consider pilot programs that test new models, and take deliberate steps toward a more inclusive and mission-driven future.

Avi S. Olitzky

Avi S. Olitzky is the president and principal consultant of Olitzky Consulting Group, based in Minneapolis, Minnesota. He can be reached at avi@olitzkyconsulting.com.