Associations and Dot Coms: What Each Wants the Other to Know
By Robert A. Floyd, CAE

At The Dot--Com Phenomenon: The Present and Future of Association Internet Strategy, part of GWSAE’s Technology Solutions Series, association executives joined Dot Com representatives to learn together how to achieve successful partnerships.

During various breakouts and panel discussions at the Reagan International Trade Center consensus was reached on at least one critical issue: there are vast culture differences between the average association and a Dot Com. In some instances these differences have led to unrealistic expectations on both sides, as well as misunderstanding and mistrust.

To try to better understand these cultures differences and find a smoother path to successful partnership, there are some thoughts that each partner wants the other to know:

What Associations want their Dot Com Partners to know:

  • Our governance structure is cumbersome and causes us to be slow in reaching decisions, particularly financial ones.
  • We rely on networking and relationships to assist us in our major purchase decisions.
  • Many of our members and even our Board members are afraid of technology—some of us are too.
  • Our resources are tight—both financial and people—and we’re already on over load. We need you to help us, not just sell to us.
  • The Dot Com bubble has burst for many companies, what assurances do we have that you will be around next year? How strong is your financial backing?
  • Our Boards (and often staff) are risk adverse, how can we minimize and share risk?
  • Our Boards expect us to get up-front money for endorsements as well as sponsorships. Are you prepared to do this? If not, why?
  • Above all, we must be accountable to our members.

What we also need to know:

  • How do you (the Dot Com) make your money?
  • Is your business plan based on fees, revenue sharing or a combination?
  • What experience have you had working with associations and nonprofits?
  • How committed are you and your staff to the mission of the association?
  • Does your organization have sufficient technical support for our staff?

What Dot Coms want their Association Partners to know:

  • Our investors expect a rapid return on their investment.
  • We understand that you must do your due diligence, but you need to speed up your decision-making.
  • If we are to be true partners, we need to share the risk.
  • While we know you have leverage with your members, it is unrealistic to expect large upfront cash outlays as a condition of the partnership.
  • Many of the Dot Coms that imploded did so because of bad judgment and poor financial management.
  • We’re not here to replace you but to be your partner—seamless and invisible.

Before an association approaches a Dot Com, according to Kathy Krajewsiki, Krajewski & Associates, Inc., it should first identify its own Unique Value Propositions (UVPs). Your UVPs are what one else does or provides. What adds value to your members and customers?

Dot Coms, on the other hand, obviously know their product well, but they really must be knowledgeable about their association audience. The culture differences are vast and not simple to bridge.

Most association executives agree that they must find ways to speed up the decision-making in their organizations. But in the meantime, Dot Coms must be willing to exercise patience if they are committed to a long lasting partnership.

Robert A. Floyd, CAE, is a consultant specializing in strategic planning, leadership training, facilitating strategic alliances and association mergers. He was formerly the President/CEO of the Texas Society of Association Executives (TSAE). He can be reached at 512.970.9708 or robertafloyd@aol.com

Copyright Ó Robert A. Floyd

Home | Get to Know SASAE | Membership | Upcoming Meeting | Info Central | Job Bank | Directory of Related Links | Contact SASAE

This website maintained by Bray Communications

To contact SASAE:

Phone: 210-408-1699
Fax: 210-408-1799
Email: lbray@satx.rr.com