In the ever-evolving landscape of nonprofits, chambers, and associations, the focus often shifts to attracting new members. However, a crucial mindset shift is essential: your primary goal should be serving your existing members, not just acquiring more. While new member recruitment is important, effective service and engagement will naturally lead to growth. Lowering barriers to entry—especially financial ones—is critical. This is where non-dues revenue comes into play, enabling organizations to enhance their value proposition without overburdening their membership.
- Serving Over Selling
The best way to demonstrate commitment to your members is by offering services and opportunities that are accessible and valuable. Non-dues revenue provides a means to reduce costs for your members while maintaining organizational viability. Crucially, this revenue does not have to—and in many cases shouldn’t—come from members themselves. By diversifying income streams, you can focus on initiatives that genuinely serve your members’ needs. This approach fosters loyalty and engagement, creating a thriving community rather than just a list of names.
- Mission Alignment
When exploring non-dues revenue opportunities, ensure they align with your mission—or are at least mission-adjacent. For instance, a food and beverage or hospitality association might find success with a “bake sale” type effort. An arts council might host an art auction or coordinate sponsored public art installations. An environmental advocacy group could organize a “Trash Fashion Show,” where participants create outfits from recycled materials and pay an entry fee. A chamber of commerce might consider hosting a “Business Olympics” where local businesses compete in quirky challenges—like a paper airplane contest or a relay race while balancing office supplies. Aligning revenue-generating activities with your core mission not only enhances authenticity, but also reinforces trust with your members. If your efforts feel disconnected, members may question your priorities and commitment.
- Financial Prudence
A critical rule for non-dues revenue initiatives is to aim for at least double the return on investment (e.g., 2 x Expense = Revenue). Whether it’s a conference, a workshop, event, or a product launch, ensure that the revenue generated significantly outweighs the costs incurred. This financial discipline is vital for sustaining your organization’s overall health. It’s not just about bringing in funds; it’s about creating a sustainable model that supports your mission and enhances member services.
- Building Brand and Revenue
Non-dues revenue should not merely be about increasing income; it must also bolster your brand and expand your audience. As your brand grows, so does your influence and reach. However, the primary focus must remain on serving your members, rather than chasing an ever-expanding audience. By enhancing your reputation through relevant offerings, you create a virtuous cycle: strong brand perception leads to increased engagement, which in turn attracts new members organically.
- Embrace Innovation—Both Micro and Macro
Lastly, don’t get bogged down by the pressure to innovate on a grand scale. Innovation comes in many forms. Macro innovation involves ideas that are entirely new to the industry, while micro innovation refers to adaptations and improvements that your organization hasn’t tried before. Both types of innovation are valuable; the key is to identify opportunities that resonate with your members and enhance their experience. Experimenting with new ideas—even small ones—can lead to significant improvements in how you serve your members and generate revenue.
Conclusion
Incorporating non-dues revenue strategies is not just about financial gain; it’s a transformative approach to serving your members effectively. By prioritizing service over sales, ensuring mission alignment, maintaining financial prudence, enhancing your brand, and embracing innovative thinking, you can create a sustainable model that not only supports your organization’s goals but also enriches the member experience. This holistic approach will position your organization for long-term success in a competitive environment, ultimately benefiting both your members and your mission.
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.
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