Joining a chamber of commerce is more than just being part of a business group; it’s entering into a collective of growth-minded entities committed to mutual success. The benefits that come with this membership are varied, ranging from networking to exposure to critical resources. What makes this even more valuable is that many of these benefits are directly fueled by the membership fees. These fees act as an investment, ensuring that the chamber can continually deliver on its promise to foster a thriving business community. A membership site can be a great way to monetize your site or create an additional revenue stream, but you’ll need to choose the right pricing model for this strategy to work. For example, you might offer a standard subscription fee or a fixed lifetime rate.
Decide when and how the increase will happen
According to Hubspot, an organization that reviews and updates its pricing structures twice a year earns almost double the ARPU (average revenue per user) as one that only adjusts it annually. The model is useful if you need to charge a high fee but know that your customers cannot afford it all at once. However, The Lifetime Membership program offers an opportunity to the alumni associations as they keep members in the loop even after they’ve graduated from college, or retired from a job. In cases where most of the value is delivered within the first three months of a membership, it is smart to charge a one-time upfront payment. Choosing a membership price that generates significant revenue without not driving away your potential members is often challenging.
Sometimes, the thought of renewing their membership simply slips their mind. In fact, it’s better for everyone if you offer a grace period of some sort. Members are more likely to renew in the grace period than after the period has completely lapsed. The right AMS lets you create these personalizations automatically by pulling relevant data from a contact database you set up.
Then we budgeted according to our offerings and expenses.” – Carol Emmett, Greater Orlando Organization Development Network. By adopting a mix of these strategies, chambers can ensure they remain financially robust, agile, and prepared for unforeseen expenses or opportunities. Furthermore, a diversified revenue stream ensures longevity and resilience, enabling chambers to continuously serve their members and the wider community. Often overlooked, there exists a plethora of financial support mechanisms facilitated by governmental and non-governmental bodies. Depending on the region and the chamber’s objectives, it might be eligible for local government grants or funding programs designed to support business communities. Actively researching and applying for these avenues, perhaps even hiring a dedicated resource for this purpose, can uncover significant financial opportunities.
Types of Membership Pricing Models
When determining these costs, make sure to be meticulous and take note of everything. As you might have guessed, it allows members to choose between free and premium plans. American Association for State and Local History (AASLH) has over 15 subscription types grouped into four categories.
Here are some of the member pricing strategies that you can use to get the most out of your offerings. The number one rule of pricing your subscription is that it should reflect the value that you are providing. An easy way of determining this is to assign points to each benefit/experience and add them all together.
This makes it accessible to many people, making it available to individual members, institutions, and academic programs. Regularly survey your members about the perceived value of their membership. Ask specific questions about which benefits they find most valuable and whether they feel the pricing is fair. Get a demo to discover how more digital solutions for improving all the stages of your membership cycle including registrations, engagement, and renewals. Provide a breakdown of where your membership fee will be used so that your members know where their hard-earned money is going.
The Easiest Way To Collect and Track Membership Dues
Community Association Institute offers four types of membership, with fees ranging between $35 to $625. Its potential members include students, management companies, and businesses. This model is popular in nonprofit organizations where the people you are serving cannot afford to pay accounts receivable job description a higher subscription fee. Get in touch to learn more about MemberClicks – software designed for the unique needs of associations, chambers and nonprofits. Membership dues also form part of operating revenue or the revenue an organization generates from its primary activities.
Many organizations think that competitive price is the only revenue driver, which is not true. The model you ultimately decide to use should thus be driven by true data. You can easily underprice or overprice a membership if you don’t rely on solid evidence. Regardless of your industry, you can use a flexible subscription model for your membership site.
The free trial might entice people to join and hopefully, by the time their trial is over, they’ll decide that the value you offer is worth paying for. You can also offer group discounts, encouraging members to convince their friends to join at the same time. Though you will be making less revenue per person than you normally would, it can ultimately lead to more paying members than you’d get otherwise. The reason why you want to do your research on a local basis is that prices vary greatly between regions.
Monthly dues are paid either at the beginning or end of the month, 12 times per year.
Managing all this while trying to get your members to pay is a recipe for disaster. Not to mention, any of your staff members can go into your spreadsheet and accidentally delete or rearrange data, causing even more headaches for both you and your members. If you decide to go ahead with an increase, never make it a drastic one. A few dollars every now and then is much more manageable for your members and will be unlikely to upset them. Plus, if you have a fair number of members, a few dollars from each of them can quickly add up and go a long way.
- This research can help you position your fees competitively within your region, ensuring you neither undersell nor overcharge.
- They will not only help you determine how much they are willing to pay for your memberships but what type of pricing model will appeal to them most.
- Furthermore, a diversified revenue stream ensures longevity and resilience, enabling chambers to continuously serve their members and the wider community.
- This solution may work if you have members, but can get very problematic as your organization grows.
- Highlight your membership benefits and the value you offer to compensate for the increase.
The beauty of membership levels is that the price you set doesn’t have to be permanent. You can start with one structure and prices—and if it’s not tax year 2013 quite working, change things up and increase prices. Everyone pays the same amount and receives the same benefits and level of access. Flat rate memberships are common among smaller organizations or organizations with members who have similar budgets and seek the same value. Dues are structured in one of several models based on what makes the most sense for each organization.
Membership Pricing Examples from Real Membership Businesses
Whether you’re a brand new nonprofit or an established one, just starting to charge member dues or looking to re-evaluate your current pricing model, there are a few things to consider. Examine the pricing strategies of other chambers of commerce to gain insights into reasonable fee ranges. This research can help you position your fees competitively within your region, ensuring you neither undersell nor overcharge. For instance, you could offer a tiered pricing plan that gives members access to certain features and charge them a flat monthly fee. Companies that have the resources to offer custom pricing will want to prioritize their highest-paying members.