A common challenge your chamber of commerce, trade association or other group may face is determining the benefits that are included in membership or at each membership level.
It can be a combination of art and science to figure out the appropriate fee. For example, you can offer dozens of benefits, but if prospective or current members feel the fee is too high, they won’t join or renew regardless.
Various studies have shown that members consider a modest and acceptable increase to be 5-10%. Increases above that will typically cause high churn rates.
Another issue your association could face with a dues increase is members opting to purchase your offerings à la carte instead of joining as a full member.
For example, an association raises all three of its membership levels by $1,000 and no longer includes a $1,500 booth at the annual tradeshow. Instead, the lowest/bronze level of $3,500 (was $2,500) now includes a 50 percent discount to a booth, among a few other nominal perks.
Consequently, the member decides it is not worth paying an extra $1,750 ($1,000 dues increase + $750 for the discounted booth) for what they received last year. Instead, they decide to forgo membership and pay full price for the booth, and your association loses $2,750 ($3,500 dues + $750 discounted booth – $1,500 full-price booth).
Thus, keep these recommendations in mind:
- If you plan on increasing dues by 5-10%, you may remove a nominal benefit, but it’s best not to remove or reduce any of the offerings.
- If you plan on increasing dues by more than 10%, you may keep the offerings the same, but it’s best to add at least 1-2 more offerings.
- In either case, do not remove any major benefits.