04/25/2024

New Paths to Profit

Smart approaches can help associations manage revenue and mission well

Profitability of products and services at associations can be a tricky business. Not every offering is meant to be a revenue driver—some simply serve essential member needs—but losing money or breaking even on some parts of the ledger can impact how you manage pricing around others. And there can be knock-on benefits to efforts that lose money on paper.

"You might have a product that's going to operate at a negative five- or 10-percent margin, but it’s critical to your mission," said Caroline Baugher, practice director at McKinley Advisors. "You have to make sure you're looking at the totality of your portfolio. [Some products are] not going to make money, but it's going to generate a pipeline to a super-strong meeting or growing your membership."

Because data about engagement is critical to assessing a product’s value, associations should think holistically about the factors that contribute to that engagement.

Please select this link to read the complete article from Associations Now.