Evaluating Advantages and Risks of Various Dues Schedules

There are basically three types of dues schedules:

1. Dues based on full-time employees (FTEs);
2. Dues based on an overall budget of the business; and
3. Dues based on tiers.

The trend over the past ten years has been moving to a tiered dues system and I'm a fan of that trend.

The first two set you and your members up for an adversarial relationship!

With a tiered dues system your members can pay for exactly what they want based on your tiered dues structure and there is no going back and forth with the business leader on how many employees they have at any given time or what their current budget is for that given year.

Get out of that game!

Work with your members to give them what they want and what they are willing to pay for based on your tiered dues structure.

The key is to be transparent on what the different levels will deliver for their dues point.

That's a win win for both the chamber and your members or potential members.

For more on a tiered dues structure from Kyle Sexton go HERE.

Membership Dues Points

What are your dues points?  What works best for you?

Studies suggest the following three models to be the most widely used in order of popularity:

1.  Tiers - Gold, Silver, Bronze
2.  Full-time employees
3.  Annual budget/sales

There are pro’s and con’s to each, it’s your responsibility to find out what works best for your organization.

Do you have the following membership categories in addition to your current membership?

• Students
• Retirees
• Lifetime members

Also, do you have a minimum dues point?  Have you ever sent money back because they didn’t pay the minimum?  While I’m not an advocate of sending checks back, there are costs to membership.

Again, something to think about!

For more information on membership tiered dues models from Kyle Sexton go HERE.

Discounting and/or Negotiating Dues: Don’t Do It!

Under no circumstances should you discount dues.

If you do, you are making a statement that you’re not worth the regular price of admission.

In tough times, members need you more than ever. They should fully support the organization. A weak chamber translates to a weaker community.

If you’re delivering value, members will pay the dues point.

Also, once you discount, you can never go back. Members will always want to negotiate their dues.

You don’t negotiate your principles do you? Same deal with membership. Don’t negotiate your dues points.

You want full participation from your members - their intellect, their time and their financial support.

Don’t negotiate. You’re worth it!

Golden Handcuff: Do You Have One?

If you’re not familiar with the term, a “Golden Handcuff” is essentially a program, product or service that your member can’t do without.

It compels them to send in their dues check year after year after year.

If you are familiar with the term, the attached list is nothing new.

What program, product or service are you providing that is your golden handcuff?

• Insurance Programs (Workman’s Comp, D&O, etc)
• Credit Cards
• Certification
• Affinity deals with office supply stores
• Etc.

Let me give you one that you’ve probably never thought of – “Your Board of Directors.”

By show of hands, how many of your board members are non-dues paying members. That’s right, they’re all dues paying members. That goes for all your volunteers – committees, task forces, etc.

So the next time you’re asked if you have a "Golden Handcuff" – you can proudly say, YES, we have one, it’s my board.

Lifetime Value of a Member

In my previous post I asked the question "are all members important?" Are some members more important than others?

Let’s all say out loud “Lifetime Value of a Member."

You know the Lifetime Value equation:

(Average Dues + Average Non-Dues) x Average Number of Years of Membership

If you’re a numbers person, you’ll want to track this number on a regular basis. It’s all about retention. The better your retention rate the bigger the ROI will be when it comes to your lifetime value.

Are you incorporating engagement campaigns, especially for 1st year members, to raise your retention rate? We all have the challenge of a low first year retention rates vs. our base members.

If you don’t have a strategy in place to improve your retention rate, now is the time to start.

For a previous blog post on membership equations go HERE.

Members: Are They All Equal?

Are all members important? Are some members more important than others?

The answer to both of those questions is yes.

When I make this statement, I get push back. The argument I hear, all members are important. They’re all equal.

From my vantage point, I don’t think so! That’s just trying to be nice.

Let me give you a few examples of what I mean.

1. Is your chairman of the board more important then a first year member?
2. Do all your members pay the same dues point?
3. You get 10 phone messages from 10 members while your were on business travel. I bet you prioritize that list before you make your first call.

I’ve said it before, your board members should be your biggest supporters financially and the leaders in the community.

And yes, these members are more important than your first year members.

Let me put it another way, lifetime value of a member!

More on that later…