Nondues revenue roundup: eighteen creative idea-starters for executives who want more bucks for the budget.

WHAT ARE ASSOCIATIONS DOING TO BOOST THEIR BUDGETS WHILE strengthening their services for members? Loads of things. Associations are doing everything from providing one-stop shopping to helping their members generate new business, train their staffs, fill jobs, and find jobs. One ambitious organization even lends its name to a stylish home furnishing collection.

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Following are nondues revenue idea-starters that ASSOCIATION MANAGEMENT gathered from organizations throughout North America. The information comes from a range of sources: informal surveys, queries to several ASAE listservers, an Internet search, and leads that our editors gathered from conferences. The mini-profiles, arranged in seven different categories, show you how your fellow executives are thinking creatively--and how you can, too.

Providing products and services

[IDEA 1]

E-mail protection service: Members and other customers of the AMS Users' Group, Irving, Texas, can contract for an anti-spam and virus protection service that's been evaluated and approved as part of the AMS Users' Group Endorsed Products Program.

Benefits to members: The service costs less than $1 per user per month. (Actual price is based on volume.) AMS Users' Group members receive an additional discount. Members can evaluate the service for 30 days for free, and set-up requires no changes to an organization's existing e-mail structure. The service provider is AppRiver, LLC, of Gulf Breeze, Florida.

Benefits to the association: In addition to providing a marketing Web site at no charge, the service provider pays the association a percentage of sales--and makes sure AMS Users' Group e-mails are not blocked by the spam filters.

Bottom line: Estimated net revenue: $25,000 for the first year. Start-up and maintenance costs: None. Staff time: Due diligence on potential service providers took approximately 30 hours.

Contact: Cindy Peebles, CAE, director of member services, AMS Users' Group, Irving, Texas. E-mail: [e-mail]. Web site: Go to www.amsug.org, and click on "Endorsed Products."

[IDEA 2]

Online store: The International Association for Exhibition Management (IAEM), Dallas, offers TradeshowStore.com as a one-stop shop for the event and exposition industry. The online store sells discounted event-related products such as badge holders, lanyards, ribbons, roll tickets, travel and exposition insurance, promotional products, and books. The site is part of IAEM Services, Inc., the for-profit corporation of IAEM.

Benefits to members and customers: They can learn about products targeted to their needs and buy them at a discount.

Benefits to the association: In addition to raising revenue, the store reaches both members and nonmembers.

Bottom line: 2004 projected net revenue: $396,000. Start-up and maintenance costs: Minimal, since the Web site is sponsored by an IAEM member. Staff time: One full-time staff person.

Contact: For more on products: Pamela Rodgers, sales coordinator, International Association for Exhibition Management, Dallas. E-mail: [e-mail]. For more on the program: Cathy Breden, CAE, executive director, IAEM Services, Inc. E-mail: [e-mail]. Web site: www.tradeshowstore.com.

[IDEA 3]

Automation services: The North Dakota Association of Counties (NDACo), Bismarck, provides automation services to members, including automation planning, network design, purchasing, configuration, installation, maintenance, and support. The services, first offered 10 years ago, are provided through a central office (with help desk) and five regional offices. Users pay monthly or can set up an annual contract with a guaranteed level of service.

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Benefits to members: They get accessible, affordable services from trained staff who are knowledgeable about the specific automation needs of county governments, including in rural areas. NDACo also cultivates a close relationship with the State of North Dakota Information Technology Department so that the association can serve as an advocate for members dealing with state technology issues.

Benefits to the association: In addition to providing nondues revenue, the automation service acts as a constant reminder of the value of membership.

Bottom line: Annual net revenue: $255,000. Annual cost to maintain the service statewide: About $1,145,000 for salary, benefits, training, and travel. Staff time: One full-time program manager plus a full-time equivalent dedicated to managing contracts and developing new business.

Contact: Mark A. Johnson, CAE, executive director, North Dakota Association of Counties, Bismarck. E-mail: [e-mail]. Web site: www.ndaco.org/automation.

[IDEA 4]

Discounted purchasing: The Carolina Pharmacy Network's Endorsed Vendor Program gives product and service discounts to independent pharmacy owners. CPN is a for-profit subsidiary of the South Carolina Pharmacy Association (SCPhA), Columbia. Vendor offerings range from generic pharmaceuticals (a major draw) to office services and supplies--anything to help members operate their businesses.

Benefits to members: In addition to receiving discounts, members save time and get peace of mind because the CPN board of directors recommends the vendors and products.

Benefits to the association: Vendors pay SCPhA an administrative fee for each member purchase. In addition, participating vendors provide a pool of potential associate members, exhibitors, and sponsors of other association programs.

Bottom line: Estimated net revenue: 2003 revenues were in the low six figures and on track for a 35 percent increase in 2004. Start-up and maintenance costs: Most come down to staff time. Staff time: CPN's executive director devotes about 20 percent of her time to contract negotiation, vendor requests and member calls, financial management, and so forth; other staff pitch in. Vendors do most of their own marketing.

Contact: Tracy R. Russell, executive director, Carolina Pharmacy Network, Columbia, South Carolina. E-mail: [e-mail]. Web site: www.scrx.org.

[IDEA 5]

Branded products: To bring world cultures to the home front, the National Geographic Society (NGS), Washington, D.C., has created the National Geographic Home Collection, a line of 2,500 branded products manufactured by seven licensees. The launch collection consisted of two lines of living room, dining room, and bedroom furniture (organized into the West Indies Collection and Tropic Winds Collection) plus bedding, accessories, lighting, and of course, photographs.

Benefits to customers: As the Web site notes, "National Geographic's Home Collection is inspired by more than a century's worth of world travels by the society's own explorers and photographers, the treasures they have discovered and collected, and the cultures they have celebrated and documented. It embodies an eclectic mix of indigenous crafts, handmade products, and fine furnishings, which together have become an aesthetic literally inspired by the world."

Benefits to the association: Net proceeds go to the society's World Cultures Fund, which supports archaeologists, cultural anthropologists, artists, and others.

Bottom line: Estimated net revenues: A spokesperson for the National Geographic Home Collection says that NGS does not release financial information. However, a Washington Post article reported, "Industry experts say the collection has the long-term potential to bring in millions of dollars." Staff time: Approximately 20 people at NGS worked on the National Geographic Home Collection.

Contact: Krista Newberry, vice president of licensing, National Geographic Society, Washington, D.C. E-mail: [e-mail]. Web site: www.nghome.com.

[IDEA 6]

Gift certificate program: To generate new business for its members, the Ohio Bed and Breakfast Association, Columbus, sells gift certificates that the public can purchase and use at member B & Bs throughout the state.

Benefits to the members: The program makes OBBA a marketing partner with its members, serves as a strong incentive for membership recruitment and renewal, and raises new revenue for the association.

Benefits to the association: OBBA uses the gift certificates as giveaways to promote both the industry and the organization.

Bottom line: Annual net revenue: $6,000. Start-up and maintenance costs: Less than $250. Staff time: Less than an hour weekly for clerical and fulfillment tasks.

Contact: Sammi Soutar, CAE, president of the Ohio Bed and Breakfast Association's management group, Able Management Solutions, Columbus, Ohio. E-mail: [e-mail]. Web site: www.ohiobba.com.

Generating business for members

[IDEA 7]

Ad placement service: To streamline the process of advertising for both member newspapers and advertisers, North Carolina Press Services (NCPS), Raleigh, has acted as an advertising representative service since 1985. The service is a for-profit subsidiary called Simplified Newspaper Advertising Placement, or SNAP.

Benefits to members and customers: On behalf of newspapers, SNAP develops new business, collects research, handles all insertion orders, collects proof of publication, does invoicing, and pays the newspapers. SNAP enables agencies to make one call to order and write one check to place display ads in any paper in North Carolina or elsewhere in the United States. The one-stop service is free to advertisers. (An additional service sells classified ads.)

Benefits to the association: Newspapers pay NCPS a commission to represent them. Because NCPS is owned and operated by its members, the service represents their interests and is held accountable by them. Many other state newspaper associations offer a similar service (some dating back 60 years), but NCPS's is one of the largest in the country.

Bottom line: Net annual revenue: $1.6 million in commissions paid by the newspapers. Start-up costs: $44,000. Annual costs for the for-profit subsidiary, including staff: $1.45 million. Staff time: A seven-person ad department plus part-time help from NCPS's two-person business office, receptionist, and executive director.

Contact: Teri Saylor, CAE, executive director, or Kathy Vitale, marketing director, North Carolina Press Association, Raleigh. E-mails: [e-mail] and [e-mail]. Web site: www.ncpress.com.

Helping fill jobs and find jobs

[IDEA 8]

Online job bank: The CFA Institute, Charlottesville, Virginia, offers JobLine, a Web-based posting service on which more than 3,700 employers have posted 8,400-plus job openings since May 2000. About half of CFA Institute's 72,000-plus members are registered on JobLine, which is the second-most-visited area of the institute's Web site. JobLine offers employers a choice of package prices, ranging from $150 for one job posting for one month to $4,000 for unlimited postings for a year. Coming soon: A full career-development resource center.

Benefits to members and customers: The service is free to job seekers and available for a fee to employers posting help-wanted ads. Both groups can enter criteria and search the site themselves or receive e-mail alerts when there's a match.

Bottom line: Estimated net annual revenue: $175,000. Start-up costs: About $10,000. Maintenance: About $50,000 is paid annually to Boxwood Technology, which does system development, enhancements, and ongoing operation and maintenance. Staff time: One employee spends about half of his time on marketing and some customer service.

Contact: Chip Deale, CAE, vice president--member and society division, CFA Institute (formerly Association for Investment Management and Research), Charlottesville, Virginia. E-mail: [e-mail]. Web site: Go to www.cfainstitute.org, and click on "JobLine."

Providing education in diverse formats

[IDEA 9]

Specialized training schools: To help members set themselves apart from competitors, the Credit Union Executives Society (CUES), Madison, Wisconsin, offers the School of Sales and Service plus follow-on consulting assistance called ServiStar.

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Benefits to members: The three-day school offers targeted instruction developed in partnership with Michael Neill and Associates of Atlanta, which specializes in sales and service training for credit unions. An outgrowth of the school is ServiStar, a sales and service "culture implementation program" that offers onsite consultation and training for members.

Benefits to the association: The programs reach a new market segment (non-executive staff) and help members see how CUES helps them grapple with strategic issues.

Bottom line: Annual net revenue: $75,000 in fiscal year 2004. Start-up costs: $40,000 (primarily marketing expenses). Annual maintenance costs: $25,000. Staff time: Less than one-half full-time equivalent; most functions are outsourced to Michael Neill and Associates.

Contact: George Hofheimer, CAE, vice president of professional development and product research, Credit Union Executives Society, Madison, Wisconsin. E-mail: [e-mail]. Web site: Go to www.cues.org, and select "Executive Education."

[IDEA 10]

Conferences on CD-ROM: The American Society for Parenteral and Enteral Nutrition (A.S.P.E.N.), Silver Spring, Maryland, offers CD-ROMs of its live conference programs, complete with digitally recorded audio, PowerPoint slides, and continuing education credits. To provide the material, the association collaborates with two partners. Digitell, Inc., records sessions free of charge, produces the CD-ROMs, and ships the final products to purchasers a few weeks after the conference. A.S.P.E.N. receives a royalty on each on-site sale and a larger royalty on post-conference sales. Beginning in 2005, Marsupial Innovative Technologies will track and handle payment for continuing education credit, again with a revenue-sharing arrangement rather than an outlay of money by the association.

Benefits to members: Similar to many health care professionals, A.S.P.E.N. members are required to have a minimum amount of accredited continuing education each year, and often employers will only pay for a course if credits can be obtained. By capturing the educational material so that members can use it at conferences or afterward, the CD-ROMs make the continuing education process more convenient and less expensive.

Benefits to the association: The CD-ROMs provide revenue, let A.S.P.E.N. broaden the impact of the educational program beyond the live conference, and promote future conferences, all without expenses.

Bottom line: Net revenue in 2004: More than $10,000 from CD-ROM sales; related sales of credits continue to earn money for the association and are expected to grow as A.S.P.E.N. automates this process in 2005. Start-up costs: $500 for table space on site at the live program. Staff time: Approximately 10 hours to coordinate requirements with the vendors.

Contact: Debra S. Ben Avram, director of professional development and research, American Society for Parenteral and Enteral Nutrition, Silver Spring, Maryland. E-mail: [e-mail]. Web site: www.nutritioncare.org.

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[IDEA 11]

Online training: The Credit Union Executives Society offers more than 125 online training courses for credit unions' entire employee base (not just CUES's traditional market of senior executives). CUES Online University is promoted as a tool that credit union human resources and training executives can use to deliver training efficiently and cost-effectively.

Benefits to members: Courses offer targeted content and use a learning management system that tracks course usage, exam scores, and other relevant information. The courses are text-based to suit members' varied technological capabilities and budgets. To make the courses too economical to pass up, CUES offers a yearly sliding-scale fee based on the number of employees in the credit union (with no per-course, per-exam, or per-student fee).

Benefits to the association: In addition to being a financial success, the program gets professional support from its vendor-partner, Digital University, which was already competing in the financial-services online education market and brought its existing client base of 50 credit unions.

Bottom line: Fiscal year 2004 net revenue: About $400,000. Start-up costs: $42,000 (primarily Web design/customization, marketing, and business process expenses). Annual maintenance costs: $25,000. Staff time: One-half full-time equivalent; many duties are outsourced to Digital University.

Contact: George Hofheimer, CAE, vice president of professional development and product research, Credit Union Executives Society, Madison, Wisconsin. E-mail: [e-mail]. Web site: www.cuesu.org.

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Providing published resources

[IDEA 12]

Reasonable reprints: Despite the Internet's popularity for distributing information, the American Society for Parenteral and Enteral Nutrition makes its corporate partners happy and generates substantial nondues revenue with paper reprints from its books, journals, and magazines.

Benefit to customers: Because they look to A.S.P.E.N. for third-party validation for their products or services, companies are eager to provide potential clients with reprints in the field and through their exhibit booths and mailings. Since 2003, A.S.P.E.N. staff have automatically sent copies of relevant articles to appropriate companies upon publication. Interested companies then order reprints for a price that includes printing, permission fees, and shipping. Even when they don't order, corporate partners are delighted to be kept informed of news affecting their businesses.

Benefits to the association: Reprint revenues have grown 900 percent, and the increased availability of the information has boosted the visibility of the publications and of A.S.P.E.N. The project is easy for journal staff, because they're already aware of the content and send standard, pre-written letters to the companies.

Bottom line: Average annual net revenue: $90,000. Start-up and maintenance costs: None. Staff time: An hour a month.

Contact: Adrian S. Nickel, director of communications, marketing, and corporate relations, American Society for Parenteral and Enteral Nutrition, Silver Spring, Maryland. E-mail: [e-mail]. Web site: www.nutritioncare.org.

[IDEA 13]

On-site bookstore: Proving that even small associations can sell books, the North American Nature Photography Association (NANPA) launched a bookstore at its annual meeting to feature works by member-authors.

Benefits to members: They get to buy specialty books and meet authors at book signings. And member-authors receive peer recognition.

Benefits to the association: NANPA adds a new attraction to its convention and gets positive feedback from meeting participants.

Bottom line: Annual net revenue: $10,000. Start-up costs: About $20,000 for the books at wholesale. Annual maintenance costs: None. Staff time: 60 hours, including staffing the bookstore at the convention, wrap-up, shipping, and paying the bills.

Contact: Francine Butler, CAE, executive director, North American Nature Photography Association, Wheat Ridge, California. E-mail: [e-mail]. Web site: www.nanpa.org.

[IDEA 14]

Relevant monographs: To provide nonprofit staff and their volunteers with timely, relevant, and objective information, the Canadian Society of Association Executives (CSAE), Toronto, produces one or two monographs annually on topics ranging from revenue diversification to positive staff-board relations.

Benefits to members: They receive targeted information from recognized experts in the field.

Benefits to the association: Monographs are "multipliers"--associations buy them in bulk each year for new board members and other volunteers. In addition, the publications help CSAE increase its brand awareness among both member and nonmember buyers.

Bottom line: Average net revenue per monograph in its first year: About $15,000 Canadian ($11,375 U.S.). First-year start-up costs: About $10,000 ($7,583 U.S.), mainly for editing, publishing, marketing, and author royalties. Staff time: A senior staff member spends about 25 percent of his or her time producing the publications; an administrative assistant spends about 10 percent of his or her time fulfilling orders.

Contact: Robert MacKenzie, director of publications and content development, Canadian Society of Association Executives, Toronto. E-mail: [e-mail]. Web site: www.csae.com/bookstore.

Selling sponsorships and advertising

[IDEA 15]

Bundled sponsorship options: The North Carolina Association of Realtors, Greensboro, has consolidated its sponsorship solicitations so that it no longer seeks funds for an unpredictable mix of events throughout the year. Instead, NCAR asks sponsors for annual support at their choice of four levels, from $1,500 to $10,000. NCAR's Business Development Department handles the sponsorships plus the trade show, advertising, and affinity program.

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Benefits to sponsors: They much prefer being asked for money once, which makes for less confusion and simpler budgeting.

Benefits to the association: Staff finds once-a-year solicitations easier and more efficient.

Bottom line: Net annual sponsorship revenue: $75,000 (compared to $15,000 four years ago). Start-up costs: $3,000. Staff time: The business development director spends about half of his time on sponsorships.

Contact: Jim Thompson, director of business development, North Carolina Association of Realtors, Greensboro. E-mail: [e-mail]. Web site: www.ncrealtors.org/about/market.htm.

[IDEA 16]

Online advertising: The Web site of the National Court Reporters Association (NCRA), Vienna, Virginia, features a Professional Services Locator, where members of the legal community or general public can search geographically or by other criteria for a court reporter, captioner, or other professional.

Benefits to users: Searching the 18,000 listings is free. The service draws 137,000 visitors a month.

Benefits to advertisers: The service offers worldwide reach and greater visibility than print ads. Each NCRA member receives a free basic listing, similar to a membership directory listing. But advertisers can also choose upgraded listings at a range of options and prices. These include large-scale, more expensive display ads or state-specific ads; premier listings that link to a corporate Web site; or enhanced listings that feature phone number and e-mail address. Ad sales are outsourced to Naylor, Inc., Gainesville, Florida.

Benefits to the association: NCRA provides a desirable service and earns nondues revenue.

Bottom line: Average net annual revenue: $35,000 to $40,000. NCRA has a revenue-sharing agreement with Naylor through which NCRA receives a minimum guaranteed figure and then a percentage of the income across a mutually contracted sales point. Start-up costs: Approximately $30,000 across four years, most for a search engine and upgrades. Annual maintenance costs: Varies, depending on programming changes and system upgrades. Development costs average $3,000 per year. Staff time: Project management requires about two hours a week from the Web manager and marketing and communication staff.

Contact: Marshall Jorpeland, director of communications, National Court Reporters Association, Vienna, Virginia. E-mail: [e-mail]. Web site: Go to www.ncraonline.org, and click on "Find a reporter or captioner."

Seeking donations for a good cause

[IDEA 17]

Fundraising enhancement: As a 501(c)(3) organization, the National Association of Housing Co-ops, Washington, D.C., raises charitable contributions from the public through the Combined Federal Campaign and similar workplace giving programs. To make this possible, NAHC joined the Human and Civil Rights Organizations of America, one of several large federations of charities that can help eligible organizations gain entrance to the Federal Campaign, state employee campaigns, and the United Way.

Benefits to the association: Having signed up with the Human and Civil Rights Organization, NAHC is automatically included in the annual fund drive and doesn't have to do anything to receive the money. Being part of the drive also puts NAHC's name in front of millions of federal, civil, postal, and military personnel.

Bottom line: Annual donations: $2,000-$4,000, but Executive Director Doug Kleine, CAE, reports that other associations he has entered into the program receive up to $15,000 a year. Start-up costs: One day of staff time. Annual maintenance costs: None. Staff time: Four hours a year to complete the renewal application.

Contact: Doug Kleine, CAE, executive director, National Association of Housing Co-ops, Washington, D.C. E-mail: [e-mail]. Web site: www.coophousing.org.

[IDEA 18]

Online auction: To help its members learn more about a potential money-making technique while raising funds itself, the National PTA, Chicago, conducted its first online auction in February 2004. The auction included items ranging from school supplies to tropical vacations--all available at lower-than-retail prices. The staff collected more than 170 donated items to be auctioned primarily to PTA members nationwide, who had two weeks to place their online bids. An outside vendor, C-Market of Boston, hosted the auction.

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Benefits to members: Bidders saved money and had the opportunity to see how an online auction works before they tried it as a fundraiser for their local PTAs.

Benefits to the association: The National PTA collected the net proceeds, strengthened relations with vendors and sponsors who made donations, and will use the lessons it learned at a second online auction in November.

Bottom line: Net revenue: $13,000. Start-up costs: $7,000. Staff time: 300 hours across six months.

Contact: Vicki Loise, development director, National PTA, Chicago. E-mail: [e-mail]. Web site: www.pta.org.

Want more information on this topic? Check out the "Outtakes and Exclusives" and "Link to Learn" areas at www.amonline.org.

RELATED ARTICLE: Revenue Resources

If you're revved up to find out more about nondues revenue sources for your association, here are a few more places to look for ideas and advice.

* ASAE Services, Inc., an ASAE subsidiary, offers 12 programs that you can sponsor for your members. All provide quality products and services while generating nondues revenue for your association. You'll find everything from conferencing services and credit-card processing to broadcast fax and e-mail programs. For more information, go to www.asaenet.org/services, and click on "Sponsored Programs for Your Members."

* Review the variety of articles on nondues revenue that are posted at www.nonduesrevenue.com. Written by Nancy Frede, president of MarketSense, Wethersfield, Connecticut, the articles focus on generating revenue from sponsorships, advertising, and booth sales.

* Apply corporate principles to your association's nondues revenue efforts by reading Rivers of Revenue: What to Do When the Money Stops Flowing (2004, Smokin' Donut Books), by Kristin Zhivago. A consultant and presenter to many associations, Zhivago focuses on techniques for truly knowing your customer and products that solve your members' problems. For more information about the book, go to www.riversofrevenuebook.com.

COMPILED BY KARLA TAYLOR

Karla Taylor is a contributing editor of ASSOCIATION MANAGEMENT. E-mail: [e-mail].