Every association knows that its members are the lifeblood of the organization. On the individual level, members hold office, attend events, recruit other members and represent the overall value of the association. On the corporate level, members' companies support associations through advertising, sponsorship, in-kind services and other means. Since associations also represent a marketing opportunity to these companies, they are considered a valuable marketing channel.

During a strong economy, associations directly benefit in the areas of membership growth and retention, advertising and sponsorship. In fact, during the most recent economic boom, many associations had to become creative in order to be able to satisfy the demand of companies wanting to get access to and in front of their members.

Today, all of us are facing a dramatically different environment. And, while some associations were factoring an already slowing economy into their budgets, no one could have foreseen the September 11th tragedy and the depth of its impact. A year ago, companies that stood in line to offer their services are now reducing all "unnecessary expenses" including sponsorships, advertising, exhibiting and memberships. The resulting effect on associations will be revenue shortfalls, reduced membership rolls and possibly financial losses.

What can associations do to minimize the effects of this economic downturn? The answer comes by exploring two important questions:

• First, what is the association's value proposition?
• Second, how can the association communicate the ROI (return on investment) it will generate?

In determining its value proposition, an association must begin to identify its value by objectively asking:

• What is our buying power or the potential economic impact of our membership?
• What major industries and/or companies do we represent?
• What decision making capability do our members represent?
• What other industries rely on our success for their own success?
• Who are our competitors and how does our value proposition differ?
• What access to our membership do we offer that is unique?

By answering these questions, an association can begin to develop a plan to successfully capture outside support. And, with associations now competing more intensely for these dollars, companies being approached will be further evaluating each association to determine where the best value exists.

The second issue of ROI is of even greater importance. Once a company has identified the value of an association, it will next have to determine where it will receive the greatest return on investment. It is critical that associations understand that their value is greatly enhanced or diminished by their ability to generate ROI.

For an association, increasing ROI does not necessarily equate to having to give anything away. Associations that take a partnership approach and offer creative and flexible solutions will stand a greater chance of earning support than those with a take or leave it attitude. Some examples of increasing ROI through creativity and flexibility and at minimal cost include:

• Pre and post event exposure for the sponsor via complimentary or reduced advertising in print, online or other communication methods such as faxes.
• Increase the number of representatives that the sponsor can bring to an event either complimentary or at a reduced rate or combination.
• Offer discounts to other areas such as exhibiting at a tradeshow, membership or program fees, mailing labels, etc.
• Allow the sponsoring organization to address the membership for 5-10 minutes.
• Include a tagline or sponsor reference on all communications including evaluations, fax blasts, cover sheets and emails.
• Ask the sponsor write a follow up article on the value of sponsoring and publish it in a timely manner.

Lastly, associations can improve their value by using the products and services of their current and potential supporters. Members should always be encouraged to buy from other members. This not only reinforces the benefit of membership but also enhances the overall buying power of the association. Some companies may offer to increase their sponsorships and support for a simple return of the favor. Don't underestimate the impact and prestige an association can generate by using a product or service.

While this article was written in response to a slow economy, associations should look at the above recommendations as good business practices. By implementing them now, your association will be positioned for success at all times.

Through a hands on, consultative approach, Strategic Business Solutions helps organizations improve productivity and maximize results. Barry Wolfert, CMP, founder of Strategic Business Solutions, is an expert in the areas of sales and marketing and strategic planning. An active association member, he currently serves as the Immediate Past President of the Georgia Chapter of Meeting Professionals International where he successfully implemented many of these strategies. He can be reached at 770-587-1787 or bwolfert@compuserve.com.