CO-BRANDED or Private Label?

Choosing the most effective approach to portal partnering.

When outsourcing Web applications, associations can choose cobranded or private-label partnerships. In a cobranded relationship, the provider's logo and name are prominent on your site, whereas in a private-label relationship the provider stays behind the scenes. Put some thought into which option you choose.

Associations already have what commercial businesses spend a lot of money building: brand recognition, a loyal customer base, and credibility. Before the Internet, these strengths prompted companies to develop cobranded affinity programs whereby an association offered benefits or services to its members and received nondues revenue by promoting a particular company's product or service.

In the Internet age, the affinity program model is still an option (see www.dash.com, www.beyondwork.com, and www.ibelong.com), but not all Internet partnerships need to follow this model. Select such partners the way you would your off-line affinity programs: by choosing programs that your members want, rather than adding programs just because they're there. Cobranding should not be a substitute for the development and funding of a strategic Internet plan, or your site will simply be an advertising platform for commercial sites, and the real value you offer your members can become lost in a confusing mosaic of corporate logos.

Some companies allow you to outsource core functions of your site on a cobrand basis, such as with online communication forums, job boards, virtual trade shows, and publication sales--common elements of association sites. However, these are prime examples of applications that can and probably should be integrated on a private-label basis. Your customers should recognize your association as a rich source of information related to your-particular industry. Keeping your name on as much of your site as possible is a good way to reinforce your brand and your members' reasons for paying dues.

When choosing a private-label partner, make sure they do more than just put your logo on their product. The point at which your site ends and their product begins should be transparent to the visitor. To view seamless private-label products, visit the site of the American Society of Training and Development, Alexandria, Virginia (www.astd.org), and look at its buyers' guide, or go to the home page of the Professional Convention Management Association, Birmingham, Alabama (www.pcma.org), and click on "E-Forums."

A final word on cobranding: Be wary of commercial sites that offer products or services that target your members. If they have applications or information you want to offer your members, why not do it yourself? For instance, if a competitive commercial site offers news your members could use, then consider contacting Lexis-Nexis or other news providers and cobrand with them, rather than with your competitor.

How real is the threat from these commercial competitors? In response to the emergence of WebMD, On-Health, and other commercial health sites, the American Medical Association, Chicago, and six other medical societies joined forces--and $6 million in funds-to create a for-profit site, www.medem.com. Visit Medem and check out its FAQs (frequently asked questions). The response to question 30 helps to explain why these associations have made such a substantial investment in the Internet. Clearly, most associations do not have Medem's financial resources; however, all associations can take away valuable lessons from this model, such as the willingness to establish partnerships with other associations to combat the resources of commercial sites and- most important-development of a strategic approach to your Internet presence.

Carrie McIntyre is business development manage; career centers and communities, Boxwood Technology, Inc., Washington, D.C.