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The Importance of Non-Dues Revenue for Associations
The global pandemic has been challenging for associations, and for many, the main challenge was maintaining and building new non-dues revenue (NDR). The most successful adapted and embraced innovative sources beyond their typical revenue streams.
While member dues are certainly a dependable and steady form of revenue for professional associations, a report by the American Society for Association Executives says membership fees make up only 39% of an association’s total revenue. The other 61% of income comprises non-dues revenue, which forward-thinking associations use to grow their organizations.
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The Two Types of Non-Dues Revenue
There are two types of non-dues revenue associations can use to increase their bottom line: external and internal NDR.
- External sources of NDR come from outside an association’s membership. This can include outside vendors, advertisers, sponsors, or any value-add available to those who don’t have memberships in the organization. An example would be an association job board charging businesses a fee to post their jobs there.
- Internal NDR is generated by charging members additional fees for professional development opportunities, events, certifications or courses, branded merchandise, etc. An example of internal NDR would be if an association charged members an upcharge for using their association job board.
Best practices are to create a healthy balance of internal and external NDR. Remember that NDR should always serve a dual purpose: adding value to your members while generating revenue for your organization.
Four Sources of Innovative Non-Dues Revenue for Associations
In addition to ensuring your NDR adds value to your members while generating revenue for your organization, remember to make sure NDR initiatives fit with your organization and brand.
Job Boards
An association-specific (and thus, industry-specific) job board is the perfect NDR addition for 2022. Hiring was the top challenge facing businesses in 2021, which experts forecast will continue through 2022—we’re living in a charged recruiting environment and businesses need all the help they can get with hiring.
Your job board will be a place organizations know their ideal candidates will search for jobs—businesses will pay to list their jobs on your job board in exchange for a pool of highly qualified, motivated candidates.
Job boards are also an incredible value-add for your members.
Monetizing Your Job Board
Associations have a couple of options when it comes to monetizing their job boards. You may want to charge a monthly subscription fee (which is also recurring revenue), so that employers can pay a flat fee to post as many jobs as they want. Another option is a “per posting” fee, where employers don’t pay a monthly fee, but one for each job they post. A combination is another option if you want to give employers more choice.
Many job boards make additional revenue by including “upgrade fees.” An example of this would be a feature-listing fee. This fee gives employers the opportunity to pay additional money to have their listings posted as a “featured” listing or remain on the top of the job listings for an agreed-upon period of time. Social media promotion, newsletter mentions, or cross-posting to other job boards or associations are other add-on options you can utilize when monetizing your job board.
Back to TopApplicant Tracking Systems
If you’re going to offer your own job board for members to post job postings, why not offer a full recruiting solution in the form of an applicant tracking system? Applicant tracking systems (ATS) are recruiting software built to automate and streamline the hiring process.
Applicant tracking systems are a smart investment for associations as they’re:
- What today’s job seekers want.
- Widely used by organizations of all types.
- Help strengthen businesses’ (aka association members’) recruiting.
- In high demand.
Savvy associations will strategically use an ATS to generate revenue. We've created a report Applicant Tracking Systems: A Strategic Guide to Revenue Generation for Associations, that goes into more depth on the economics behind this choice.
Applicant Tracking Systems are a Growing Market
Applicant tracking systems are an in-demand solution businesses will pay to use. According to Reports and Data, the ATS market is expected to reach $2.22 billion by 2027. While the market is growing, it hasn’t hit peak saturation yet. While almost all large organizations and Fortune 500 companies are currently using applicant tracking systems, only 35% of SMB have adopted ATS use—65% of that market is still up for grabs.
Additionally, an HR.com study found 57% of recruiters at large organizations aren’t satisfied with their applicant tracking system. Many ATS users are in the market for a stronger hiring solution.
Monetizing Your ATS
Like job boards, applicant tracking systems can be monetized with subscription-based pricing that sets clear expectations around monthly packages. You can also do usage-based pricing for applicant tracking systems—users pay for what they use. Location-based pricing is ideal for franchises or multi-location businesses that offer a fixed operating cost at each location.
HiringThing offers an ATS monetization model called Flex Pricing. With Flex Pricing, all your members automatically get access to your ATS—it’s just a matter of them deciding to utilize it. This subscription-based plan is designed so that your members can quickly scale up or down to meet their recruiting needs and only pay for what’s being used. Read here how one of our customers used Flex Pricing, also known as the QuickStart program, to grow ATS usage and drive revenue.
Private Labeling Your Applicant Tracking System Takes Hiring Solutions to the Next Level
Private-label software is purchased by a company from a SaaS provider and customized with robust, user-friendly solutions, including tailored workflows and single-sign-on capabilities. Associations that partner with a private label SaaS provider work with the provider to meet their specific recruiting needs. The strength of private labeling is that consumers who buy or use the end product are not aware it was developed by the private-label provider, strengthening the brand of the purchasing partner. Competitive private label applicant tracking systems can be purchased, customized, and launched almost immediately, making them an excellent choice for organizations looking to launch their in-demand product quickly.
Check out our post What is a Private Label Applicant Tracking System? for a deeper look at the benefits of a private label solution, or schedule a demo if you’re ready to get things started.
Learning and Development Opportunities
The 2021 Member Marketing Benchmarking Report highlights the products and services that increase association member engagement and participation. Associations overwhelmingly found that learning and development opportunities drove member engagement over the last year—83% of associations report having higher participation in their webinars, compared to 53% the year prior, and 57% of associations report seeing increased attendance at professional development meetings.
Association members are more engaged than ever in learning and development opportunities, making them a great NDR opportunity. Learning and development solutions can include:
- Webinars
- Synchronous and Asynchronous Online Courses
- Networking Events
- Conferences
- Speaking Engagements
- Certification Opportunities
- Self-Learning Modules
- Guides
- Accreditation Opportunities
Monetizing Learning and Development Opportunities
Learning and development is a great value-add for association members, but we’d caution against charging members for every professional development opportunity—some learning should be included with membership dues. However, there are still innovative ways to make learning and development a significant source of NDR:
- Upsell Premium Content: Offer premium content in the form of add-ons for certain learning and development opportunities, while membership includes the foundational solution. An example would be offering a webinar to all your members but upselling a Q&A session with experts afterward.
- Product Bundles: Selling multiple learning and development solutions for one fixed price is an effective way for organizations to increase their revenue while letting members feel like they’ve got a great deal (which they have!).
- Sell Professional Development Opportunities to Non-Members: You may want to open your learning and development solutions to those outside your member base. This is an opportunity to monetize your solutions while simultaneously showing value to potential new members. Selling to non-members also allows you to package some of your learning solutions as “member exclusive,” which increases the membership value.
Buyer's Guide or Marketplace
Did you know that as of 2021, there were approximately 15,000 SaaS solutions in the United States? Your members are undoubtedly looking for the best professional solutions to help them, but shopping around for those can be overwhelming.
You can help your members by creating a buyer’s guide—vetted recommendations by you, the industry experts, to help make the buying process easier. Take this a step further by offering a marketplace where your members can find expertly curated SaaS solutions and other products that solve their professional challenges.
Monetizing Your Buyer's Guide/Marketplace
For a buyer’s guide, you can charge members or nonmembers a fee to use or purchase it. You can also use sponsorship opportunities for organizations whose products are featured in the guide to grow revenue.
Similarly, you can charge members or nonmembers a fee to use your marketplace and charge vendors for sponsorships, featured listings, or marketplace inclusion.
Remember to Lead With Value
Savvy organizations are always figuring out how they can add more value for their members. Lead with value when you’re coming up with ideas with both internal and external NDR. There’s always a market for solutions that add value to customers’ lives.
About HiringThing
HiringThing is a modern recruiting platform as a service that creates seamless hiring experiences. Our private label applicant tracking system and open API enable technology and service providers to embed hiring capabilities from sourcing to onboarding. Approachable and adaptable, the platform empowers anyone, anywhere, to hire their dream team.
