Are you thinking of raising your membership dues?
Posted on Tue, Nov 30, 2010
By Pete Carter, Senior Vice President
Raising membership dues can be a lucrative – but risky – move for any organization. It’s a big decision, and the outcome will depend upon many factors. Consider them carefully!
Value: It’s generally not enough to simply say – “Our costs are rising, so we need to raise our dues.” Are you planning new benefits? Do you need to step up your advocacy? Multiple surveys report that the number one reason why members decline to renew is “Lack of Value.” A much smaller percentage will cite “Dues are Too Expensive.” So, state your Value Proposition, by convincing members that their membership is worth the new, higher dues amount you’ve won more than half the battle.
Frequency: According to a study published by the American Society of Association Executives (ASAE), 66% of organizations raise dues on an as-needed basis. About 18% raise them annually. And only 3.5% of organizations said they never raise their dues. You aren’t alone in raising your dues.
Amount: According to that same ASAE survey, 59% of groups raised dues by 10% or less. About 21% raised dues by 11%-20%. 15% of groups raised their dues by more than 20%-49% and just 5% raised dues by 50% or more. The impact of these increases varies. What’s really interesting is this: groups raising dues by the moderate amount, 11% to 20%, showed the highest percentage of revenue increase, no reported revenue decreases, and the lowest percentage of stagnant revenue. And nearly a fifth of these associations saw their membership files grow in number after raising dues!
But there is a limit. Dues increases over 20% showed a diminishing rate of return. With these more substantial increases, 35% of groups experienced a decline in overall membership, and many saw a decrease in revenue.
Special Offers/Incentives: If you’re afraid that your dues increase might be too steep for some members, have some special offers in your back pocket. Consider allowing members to break up their dues into monthly or quarterly installments. Or institute a lower rate for seniors or students. Finally, many organizations offer a lower dues amount to new, first-year members as an incentive for joining.
Listen: Once the dues increase is implemented, listen to how your members react. Monitor comments made on social media. And if you have a member services line, tally comments that are phoned in. If members have accepted your Value Proposition, then you’ll have very few complaints.
If you’d like to share the results of your membership dues increase, or any thoughts you have on the topic, please add your comment below or email me directly at pcarter_at_ahadirect.com
