Unlocking Non-Dues Revenue Potential through Affinity Programs
While membership dues are a major income source for most associations, diversifying your revenue streams is key for organizations to grow and maintain a stable budget.
One of the best ways to achieve this is by utilizing non-due revenue programs, and that’s where setting up a solid affinity program comes into play!
In today’s blog, we’ll take a closer look at affinity programs, what they are, and how they can benefit your organization. So, without further ado, let’s dive right in!
How Do Affinity Programs Work?
An affinity program is simply a partnership between a membership organization/association and another non-competing company so that the latter can offer products or services that are deemed relevant to the organization’s members.
For instance, a professional association might partner with a travel company to offer the members exclusive discounted rates on specific trips. Affinity programs can also take a variety of forms, such as:
- Point-based loyalty programs
- Insurance programs with exclusive or discounted coverage
- Co-branded credit cards
How Can Affinity Programs Benefit Associations?
A good way to understand the advantages of affinity programs is by having a real-life example like the one mentioned above.
In this example, the association uses the affinity program to offer its members valuable benefits and services, which can help it retain members in the long run while increasing the overall value of the membership.
On the other hand, the travel company reached new customers who will be eager to utilize their discounts, expanding their revenue in the process. All in all, affinity programs are usually a win-win situation for all parties involved.
Affinity programs also come with additional perks for your association, including:
- Attract new members, increasing the membership dues revenue indirectly.
- Establishing trust with existing members.
- Improving the brand value/affinity of the association against competitors.
Essential Tips to Consider While Setting Up Affinity Programs
Now that you know more about affinity programs and how they work, here are some essential tips to keep in mind while setting up your own.
Determine the Main Goal of the Affinity Program
Since affinity programs have various advantages, you have to pick the ones that relate to your goals the most.
To achieve this, you need to first consider the needs of your members and the goals of your organization as a whole, then base your potential partners on those benchmarks.
Pick the Right Partner
Make sure that you negotiate partnerships with multiple companies and brands to get the best deal possible.
Remember to also listen to your members through surveys and partner with companies that have similar values and interests.
Track Your Performance
Besides overall revenue, you should also monitor other trends and statistical data to assess the value of the affinity programs.
In some cases, the program may not achieve immediate revenue increase but it attracts more members, which expands your potential revenue in the long run.
Wrap Up
Affinity programs can be a great way for associations to unlock non-dues revenue potential and provide more value to their members. It’s also a great way to attract new members and rise head and shoulders above the competition.