Gauging vendor commitment to affinity programs.

This is an age of seemingly endless possibilities in affinity programs. From logo-emblazoned credit cards to discounted insurance plans and member education services, never has the picking been so ripe. Selecting from the myriad vendors offering programs to generate new association revenue and aid in member recruitment and retention is a daunting challenge.

When done right, you are able to add even greater value to your membership and generate a diversified source of nondues income. Take shortcuts and you will likely churn through a series of vendors, wasting valuable time and diluting your member benefits.

Remember, affinity programs are among the purest forms of partnership, and a partnership's foundation determines its success. An African proverb says, "If you want to know the end, look at the beginning." Apply that lesson to affinity relationships; if you want to forecast the results of your program know your vendor.

One of the most common mistakes associations make when choosing an affinity program is forgetting to do due diligence on the vendor. Vendor due diligence is essentially a financial, commercial, and strategic business review to ensure that your affinity partner is a capable, committed, and compatible provider of benefits to your members.

Vendor due diligence does not need to be a lengthy or resource-intensive process. While there is no secret formula for guaranteeing a successful relationship, you can increase your chances for long-term success by taking the following steps as you identify and qualify your affinity partners.

1. Look behind the scenes. Make sure the vendor is not a "fly-by-night" operation. If it is a public company, plenty of financial data will be available for analysis. If the vendor is privately held, ask for references and check to see if it is dedicating sufficient human and financial associations it serves.

2. Don't underestimate what you are bringing to the relationship. Think of yourself as a buyer or a large retailer, with your goal being to stock your association's shelves with the most appropriate products for your customers (members). You deserve and should demand the same high level of customer service as a retail buyer. Find out about the vendor's track record for service and what levels of support it will provide.

3. Ask as many "what ifs" as you can. Affinity programs involve dynamic relationships, and it is almost impossible to foresee at the time of agreement just how underlying conditions might change. Find out what your vendor will do in tough times. More importantly, make sure it has scalable resources for those times when demand greatly exceeds forecasts.

4. Don't assume that if they build it, your members will come. Vendors should be prepared to commit considerable resources to the marketing and promotion of their programs. Ask your vendor for a marketing plan detailing how it will reach your members, with what messages, and through which channels.

5. How will program success be measured? Finally, jointly agree in advance on how and when the program will be evaluated, what countermeasures will be put in place, and how you will celebrate your successes.

Scott Wyatt is director of business development, Jones International University, Ltd., Englewood, Colorado. E-mail: [e-mail].

Contact Information 303-784-8368 www.jonesinternational.edu

Founded in 1993, Jones International University, Ltd., pioneered the practice of providing quality online education for busy adults around the globe, JIU employs the brightest minds from world's leading universities, including Stanford University, Columbia University, and Georgetown University, to create highly relevant and practical learning experiences that help people advance their careers and enhance their lives. As the first fully online, accredited university, JIU offers 3a graduate and undergraduate degrees and more than 50 certificate programs in the fields of business, education, and communication.

Leading associations from around the world have partnered with JIU to bring discounted education programs to their members and a powerful source of nondues revenue to their organizations.