If increasing HBA membership is important to you I hope you will take just a minute or two to read the information that I am about to share.
I’m calling it Membership Drive “Myths and Realities” and I think it’s pretty important to understand them in the “new economy”.
If you are an email “scanner” just go straight to the HEADLINES below.
This is not a “commercial” for the Direct Drive process that we have shared with HBA’s across the country – although we are working on what I’ll call Direct Drive 2.0 for now that I hope you will take a look at later in the week.
Feel free to reply and share any comments that you have. I do value and appreciate your comments!
Kate and I have had the privilege to work with State and Local HBA’s in about 45 states across the country on membership, retention and non-dues revenue.
We have seen two-day membership increases of anywhere from 5% to over 160% at least 400 times in the last six years or so.
20% - 25% increases are common when a HBA membership is done correctly – and fast!
Below are some of the common “myths” about membership drives that I think you will find interesting.
The “realities” I am sharing come from our own experiences and the experiences of the HBA’s we have worked with.
Here you go:
#1 Membership Drive “Myth and Reality”
Myth: Slow and steady membership growth is the only “healthy” way to grow.
Reality: Of course, steady membership growth is important to any HBA. Steady growth is equally as critical for your member companies.
The “dilemma” with only choosing the “steady” path to growth is that it often goes unnoticed by your members. The membership “numbers” do go up and down a little on a monthly basis but don’t make much of a “ripple” when it comes to generating enthusiasm, excitement and optimism with your current members. Don’t get me wrong here; I am a huge supporter of steady membership growth!
But, when you have a “surge” in membership at least once a year or so and have a ten, twenty, thirty or more percent increase in membership in a short period of time it gets NOTICED!
Imagine the impact of mailing out a list of 100 “brand new” members could have on your current members. They will know that they are part of a HBA that is growing and thriving! They’ll even get a chance to see some of their “business” friends and associates on the list. In some cases they will also recognize some of the new members as their competitors and will want to “protect their turf” at the HBA.
When you have a fast and strong boost in membership, attendance at your HBA events and functions will spike as well – with new people that bring new ideas, excitement and enthusiasm with them. If you are seeing most of the “same old” people at your general membership meetings over and over – a fast increase in membership can and will really “shake up” your events immediately following your membership “drive”!
Oh, and the fast increase in revenue to your HBA won’t go unnoticed either – imagine the level of service you could provide to your current members with a quick influx of tens of thousands of dollars to your HBA budget in just a few days!
Yes, grow slow and steady – but make a plan to have at least one big “surge” in membership every year or so. You will be amazed at the level of pride, excitement and enthusiasm it will have on your HBA and your members!
#2 Membership Drive “Myth and Reality”
Myth: The “quality” of members drops when you have a membership drive and add a lot of new members all at once.
Reality: It can happen, but only if the membership drive process consists of “cold calling” strangers and “twisting their arms” to get them to join the HBA.
When membership drives are conducted this way there are no “filters” in place and you really have no control over who is invited to join your HBA. Although the “numbers” can be OK, quality of membership and retention can become real challenges.
In a properly organized membership drive your current members will be the enthusiastic “recruiters” and will typically “self filter” who actually gets invited and joins your HBA.
Your members have an incredible “sphere of influence” in your business community. If they participate in your membership drive and are coached properly about how to invite their friends and business associates the quality of your new members will likely be that same as your current members. Your odds of turning these new members into long-term members will also go up significantly.
We call this “self filtering” process “like attracts like”.
Your members that participate in your membership drive will invite potential members to join that are a lot “like” themselves. Most of your members spend time with and associate with other business people with similar interests, ideas and business goals.
Your members are the best recruiting tools. If you give them the tools and information they needed in a simple, step by step program that encourages them to leverage their own “sphere of influence” you shouldn’t have to worry about the “quality” of members they will attract and your retention rate for new members will be much higher.
Membership Drive – Myths and Realities
#3 Membership “Myth and Reality”
Myth: “Our HBA is too small to have a membership drive”
Reality: We have had the opportunity and privilege to work with Associations with over 4,000 members and as few as 37 members – the results are always amazing. Membership increases of 50% to over 150% are actually commonplace with Associations that have anywhere from 37 members to 250+ members.
The key factors that drive membership success in smaller organizations are enthusiasm, optimism and a strong commitment by a relatively small group of members to share the true value of HBA membership with other business people in their own sphere of influence.
There is real value in the thought “everybody knows everybody” that is common in smaller communities. When you can combine that kind of familiarity with a set group of steps and action items designed to “leverage” local influence in the “world” of HBA membership the results are typically astounding!
If you have been searching for a way to increase membership fast but believe membership drives are only for the “big guys” – think again.
What would a 10%, 20%, 30% to over 100% increase in membership do for your HBA in the “new economy”? Think about the possibilities and then set “outrageous” goals to increase membership.
When it comes to increasing membership fast – size really doesn’t matter. It’s all about attitude, optimism and TAKING ACTION NOW!
#4 Membership “Myth and Reality”
Myth: It takes way too much time and energy to put a membership drive together.
Reality: Yes, it takes time and energy to have a successful membership campaign. But, not TOO much time. A well run, properly managed membership drive shouldn’t take more than forty-five days from inception to completion. In fact, long and drawn out membership campaigns can be a lot more “painful” and in many cases far less successful than a fast, focused and almost “laser” like approach.
Successful membership campaigns or drives also let your members help with the details and even some of the “heavy lifting”. Finding ways to get your members onboard in a “win-win” situation is crucial to a successful drive.
I’m not suggesting that membership drives are the only way to increase membership but if the efficient use of time and energy (and money) is a concern consider some of the alternatives like:
-continually trying to come up with new ways to get your members, committee members and board members to “recruit” new members
-setting up and monitoring (and managing) year long campaigns that you have to remind people about over and over again
-discounting dues to get people to join – I recommend you never use a dues “discount” as a sales tool
-sitting in meeting after meeting resetting membership goals (usually lower) and looking for quick fixes
-spending hours and hours motivating and cajoling people to help with membership
A fast, successful and fun membership drive not only boosts membership. It FREES UP TIME to concentrate on retention, non-dues revenue, member services and other important things at the HBA.
It also doesn’t hurt to get a big “influx” of cash in addition to your usual membership dues. Some of the new cash generated from a membership drive can be used to invest in ways to increase the value you can offer your current members.
As I mentioned above, your comments are always welcome and I do read each and every one of them.
We will be releasing information later this week about Direct Drive 2.0. We’re pretty excited about releasing it but it will be available for just a short time and for a limited number of HBA’s across the country. I think we will be able to get you the details this Thursday.
Tuesday, April 12, 2011
Tuesday, October 13, 2009
Are you Ready for a Challenge in the "New Economy"?
Shhhhh – don’t tell Rob but I (Kate) am filling in this week!
This week’s Renegade HBA Tip will be just a little bit different. I have a challenge for every association staff person who wants to take this “New Economy” on with both feet forward.
Are you ready for an easy challenge that will (if you aren’t already) get you on the path to doing business different then you did in the “Old Economy”?
Do you want to stand out in the community, keep the members you have and even get new members?
Do you want to make your current members feel appreciated and motivated to refer new members to your association?
Click here to read more…
Quick Update: We are currently getting ready to leave for Florida and New York. We have had an amazing fall schedule sharing with Home Builders Associations across the country how to increase membership, keep the members they have and even increasing non-dues revenue. In the last five weeks or so we have been to 17 States, met with 74 Local Home Builders Associations and their staffs . MOTIVATED staff people who are all waking up everyday with the same goal of growing their association and keeping their current members motivated to renew their membership. After talking to so many of them I wanted to give you a “Renegade HBA Direct Marketing Challenge” this week. And this will be easy enough that you can start today, spend a quick ten minutes doing this easy to accomplish task and begin to see results NOW. Are YOU Ready?
If you know me, you will know how passionate I am about the “written note”. NOT emailing – really writing a note – do you remember handwritten notes?
So, when was the last time you really sent a thank you note or any note of appreciation to someone in your association or your community?
Challenge: Start today and write one note.
Write one note a day each day this week. That is four notes to start (if you are ready this on Tuesday).
IF you start this new habit you may even continue next week, and send five more. Don’t get caught up in how it is written or the paper it is written on. Just start by getting out a note card or even a yellow tablet and write a note from your heart in your words. The person receiving this note will know it is from you by how you write it and will be pleased that you took the time to do it. Here are some ideas of who you could send a note to:
Past member – maybe someone who dropped in the past year
(I hope you have not lost your way – we want you to find your way back to us.)
Current member – thanking them for being in the association and for what they do for you
(We appreciate your membership and know that it is members like you that keep our association growing)
Employee/staff person – for doing all that they do to help keep your association growing
(Times get busy in our work day and I wanted you to know I noticed you going the extra mile to make our association a success)
Vendor – for taking care of your association and providing you with their service
(We know how busy your day is and we appreciate you going the extra mile to provide our association with excellent service)
Potential member – someone you want to join your association
(You are someone our association wants as a member with and we have a special offer for you to join now.)
Last Tips For the best results:
Hand address the envelope
Put a real stamp on it – CROOKED!
Put your first name above the return address
Put your business card inside with a short note on the back
And if you want to really go the extra mile – make the envelope “Lumpy”.
There is your challenge! If you really want to grow your association in this “New Economy” you will have to do things different to stand out and be noticed.
Let me know how you did!
Shhhhh – don’t tell Rob but I (Kate) am filling in this week!
This week’s Renegade HBA Tip will be just a little bit different. I have a challenge for every association staff person who wants to take this “New Economy” on with both feet forward.
Are you ready for an easy challenge that will (if you aren’t already) get you on the path to doing business different then you did in the “Old Economy”?
Do you want to stand out in the community, keep the members you have and even get new members?
Do you want to make your current members feel appreciated and motivated to refer new members to your association?
Click here to read more…
Quick Update: We are currently getting ready to leave for Florida and New York. We have had an amazing fall schedule sharing with Home Builders Associations across the country how to increase membership, keep the members they have and even increasing non-dues revenue. In the last five weeks or so we have been to 17 States, met with 74 Local Home Builders Associations and their staffs . MOTIVATED staff people who are all waking up everyday with the same goal of growing their association and keeping their current members motivated to renew their membership. After talking to so many of them I wanted to give you a “Renegade HBA Direct Marketing Challenge” this week. And this will be easy enough that you can start today, spend a quick ten minutes doing this easy to accomplish task and begin to see results NOW. Are YOU Ready?
If you know me, you will know how passionate I am about the “written note”. NOT emailing – really writing a note – do you remember handwritten notes?
So, when was the last time you really sent a thank you note or any note of appreciation to someone in your association or your community?
Challenge: Start today and write one note.
Write one note a day each day this week. That is four notes to start (if you are ready this on Tuesday).
IF you start this new habit you may even continue next week, and send five more. Don’t get caught up in how it is written or the paper it is written on. Just start by getting out a note card or even a yellow tablet and write a note from your heart in your words. The person receiving this note will know it is from you by how you write it and will be pleased that you took the time to do it. Here are some ideas of who you could send a note to:
Past member – maybe someone who dropped in the past year
(I hope you have not lost your way – we want you to find your way back to us.)
Current member – thanking them for being in the association and for what they do for you
(We appreciate your membership and know that it is members like you that keep our association growing)
Employee/staff person – for doing all that they do to help keep your association growing
(Times get busy in our work day and I wanted you to know I noticed you going the extra mile to make our association a success)
Vendor – for taking care of your association and providing you with their service
(We know how busy your day is and we appreciate you going the extra mile to provide our association with excellent service)
Potential member – someone you want to join your association
(You are someone our association wants as a member with and we have a special offer for you to join now.)
Last Tips For the best results:
Hand address the envelope
Put a real stamp on it – CROOKED!
Put your first name above the return address
Put your business card inside with a short note on the back
And if you want to really go the extra mile – make the envelope “Lumpy”.
There is your challenge! If you really want to grow your association in this “New Economy” you will have to do things different to stand out and be noticed.
Let me know how you did!
Tuesday, September 22, 2009
Don’t Stop Believing
We’ve been contacting some of the HBA’s around the country about some of the tools that we offer to help increase membership, retention and non-dues revenue. It’s a pretty interesting environment out there as you might guess. We have had limited success, but that’s really not the point here. The real point is that in challenging times there is a reflex to just kind of “freeze” everything and “wait it out”.
We hear things like:
“It doesn’t really matter what we do, no one is going to join right now”.
Someone forgot to tell that one association – they increased their membership by 10% in two days last month.
“No one is sponsoring anything right now”.
“It’s really hard to get people to part with money right now”.
Side Note: I personally generated about $15,000 dollars last fall for a first time business event our company is producing in the giant metropolis of Wenatchee, WA (population about 30,000 including the surrounding areas).
AND: We just helped a Humane Society in a very small and depressed area of Washington State generate about $24,000 in a three-day period.
Now I know that the business climate is a real challenge right now, but there are millions of business people that get up every day and look forward to getting more customers, keeping more customers and generating more revenue per customer. These motivated business people actually “believe” they can succeed.
I heard someone say at a NAHB event that “non-profit” is a tax classification – not a goal.”
In business, if the times get tough and the solution becomes just to “wait it out” the consequences can be dire. Smart businesses look at their processes and systems, products and services, performance and productivity and then look for ways to become more efficient, innovative and productive while watching the income and expenses like a hawk. They take control of their destiny and don’t commiserate about the lack of business and just “hole up” for the winter.
If your HBA were a “for profit” business would you act differently?
If you are reading this article you have already set yourself apart as someone that is not going to just sit around and wait for something to happen, so I know that I am sort of “preaching to the choir”. You have already decided to take action and continue to learn, implement and execute the plans and strategies that are necessary to “compete and win” in the world HBA’s.
Don't just take our for it, there are thousands of resources on the web that you can access to get new ideas, tools and strategies. Type “member retention” or “non-dues revenue” or “increase membership” in a search engine and you will be amazed at what you can find. Get about four or five pages deep in the search and you will see retention plans for health clubs, Lions Clubs, Rotary Clubs, churches and more. I recommend that you take some time and do a little “surfing” and stretch your mind even a little bit more.
And most importantly, continue to do SOMETHING! Don’t fall into the “wait and see” trap.
Think like a business and implement like a business…and “don’t stop believing”
We’ve been contacting some of the HBA’s around the country about some of the tools that we offer to help increase membership, retention and non-dues revenue. It’s a pretty interesting environment out there as you might guess. We have had limited success, but that’s really not the point here. The real point is that in challenging times there is a reflex to just kind of “freeze” everything and “wait it out”.
We hear things like:
“It doesn’t really matter what we do, no one is going to join right now”.
Someone forgot to tell that one association – they increased their membership by 10% in two days last month.
“No one is sponsoring anything right now”.
“It’s really hard to get people to part with money right now”.
Side Note: I personally generated about $15,000 dollars last fall for a first time business event our company is producing in the giant metropolis of Wenatchee, WA (population about 30,000 including the surrounding areas).
AND: We just helped a Humane Society in a very small and depressed area of Washington State generate about $24,000 in a three-day period.
Now I know that the business climate is a real challenge right now, but there are millions of business people that get up every day and look forward to getting more customers, keeping more customers and generating more revenue per customer. These motivated business people actually “believe” they can succeed.
I heard someone say at a NAHB event that “non-profit” is a tax classification – not a goal.”
In business, if the times get tough and the solution becomes just to “wait it out” the consequences can be dire. Smart businesses look at their processes and systems, products and services, performance and productivity and then look for ways to become more efficient, innovative and productive while watching the income and expenses like a hawk. They take control of their destiny and don’t commiserate about the lack of business and just “hole up” for the winter.
If your HBA were a “for profit” business would you act differently?
If you are reading this article you have already set yourself apart as someone that is not going to just sit around and wait for something to happen, so I know that I am sort of “preaching to the choir”. You have already decided to take action and continue to learn, implement and execute the plans and strategies that are necessary to “compete and win” in the world HBA’s.
Don't just take our for it, there are thousands of resources on the web that you can access to get new ideas, tools and strategies. Type “member retention” or “non-dues revenue” or “increase membership” in a search engine and you will be amazed at what you can find. Get about four or five pages deep in the search and you will see retention plans for health clubs, Lions Clubs, Rotary Clubs, churches and more. I recommend that you take some time and do a little “surfing” and stretch your mind even a little bit more.
And most importantly, continue to do SOMETHING! Don’t fall into the “wait and see” trap.
Think like a business and implement like a business…and “don’t stop believing”
Tuesday, September 15, 2009
Your Newsletter is a Powerful Recruiting Tool
Nearly every HBA produces a monthly or at least quarterly Association Newsletter. I have copies from at least 100 locals that we have actually worked with. In many cases we have been to their offices and met the staff and some of the members. The interesting thing about the newsletters that we get is they really do reflect the values, enthusiasm, excitement and commitment of the staff and the membership. When we get a newsletter from a HBA that we haven’t built a relationship with yet or have not visited their office, we can get a pretty good idea of the “culture” of the local by reading the newsletter.
How many potential members do you send your newsletter to? If you are already using your newsletter as a recruitment tool – congratulations! If you are not you should consider it. Your newsletter contains nearly all of the things you want a potential member to know. Your newsletter tells a potential member what projects and issues you are currently working on. It also contains names and in most cases, photos of current active members that a potential member may recognize. Typically, there is a list of upcoming classes and educational opportunities that you are offering. There is always a list of new members and renewals. Some of these are either business associates or competitors of your potential member. But, most importantly your newsletter lets a potential member get a real “taste” of what your association represents and the value you add to your member companies.
Here’s a sample “plan of attack” to put your newsletter to work recruiting for you.
Step One: Make a “hit list” of five, ten, fifty or even one-hundred companies that your association can add value to that are not current members. Brainstorm with staff, committee members and board members to make the list.
Step Two: Print the extra copies you need and bring them to a membership committee meeting or board meeting. During the meeting have each member present “autograph” the newsletter with a signature and even a short note.
Step Three: Create an “abbreviated” application form and include it in a hand-addressed,
9 X 12 envelope using real stamps.
Step Four: Do the same thing every month for three months and mail your newsletter to the same “hit list”. Always get the autographs and always include the application. Do not short cut the process as you will also lower the response.
Step Five: Make a follow-up call and send a “sales letter” after you have sent at least three autographed newsletters in the special hand-addressed envelopes with real stamps. Include a special “enhancement” if they make a decision by a specific date. (See “Direct Marketing 101” in this issue for more information)
Step Six: Continue sending the potential member your newsletter for three more months and repeat Step Five. If they join, you win. If they choose not to join, at least they know about your HBA and may support you on important issues in the future.
Step Seven: Add new potential members to the “system” as you remove others.
Note: The key to success using this system is consistency and persistency. In most sales situations the highest level of success usually happens after at least five contacts. Don’t give up to fast and make sure to get those “autographs”.
Nearly every HBA produces a monthly or at least quarterly Association Newsletter. I have copies from at least 100 locals that we have actually worked with. In many cases we have been to their offices and met the staff and some of the members. The interesting thing about the newsletters that we get is they really do reflect the values, enthusiasm, excitement and commitment of the staff and the membership. When we get a newsletter from a HBA that we haven’t built a relationship with yet or have not visited their office, we can get a pretty good idea of the “culture” of the local by reading the newsletter.
How many potential members do you send your newsletter to? If you are already using your newsletter as a recruitment tool – congratulations! If you are not you should consider it. Your newsletter contains nearly all of the things you want a potential member to know. Your newsletter tells a potential member what projects and issues you are currently working on. It also contains names and in most cases, photos of current active members that a potential member may recognize. Typically, there is a list of upcoming classes and educational opportunities that you are offering. There is always a list of new members and renewals. Some of these are either business associates or competitors of your potential member. But, most importantly your newsletter lets a potential member get a real “taste” of what your association represents and the value you add to your member companies.
Here’s a sample “plan of attack” to put your newsletter to work recruiting for you.
Step One: Make a “hit list” of five, ten, fifty or even one-hundred companies that your association can add value to that are not current members. Brainstorm with staff, committee members and board members to make the list.
Step Two: Print the extra copies you need and bring them to a membership committee meeting or board meeting. During the meeting have each member present “autograph” the newsletter with a signature and even a short note.
Step Three: Create an “abbreviated” application form and include it in a hand-addressed,
9 X 12 envelope using real stamps.
Step Four: Do the same thing every month for three months and mail your newsletter to the same “hit list”. Always get the autographs and always include the application. Do not short cut the process as you will also lower the response.
Step Five: Make a follow-up call and send a “sales letter” after you have sent at least three autographed newsletters in the special hand-addressed envelopes with real stamps. Include a special “enhancement” if they make a decision by a specific date. (See “Direct Marketing 101” in this issue for more information)
Step Six: Continue sending the potential member your newsletter for three more months and repeat Step Five. If they join, you win. If they choose not to join, at least they know about your HBA and may support you on important issues in the future.
Step Seven: Add new potential members to the “system” as you remove others.
Note: The key to success using this system is consistency and persistency. In most sales situations the highest level of success usually happens after at least five contacts. Don’t give up to fast and make sure to get those “autographs”.
Wednesday, September 9, 2009
Sales 101 – Features and Benefits
Increase non-dues revenue by “changing the ask”
I am on a lot of email and newsletter lists for HBA’s around the country so I get the opportunity to see just how “offers” are made for things like sponsorships, publication advertising, event participation and a whole variety of other non-dues revenue generating items.
Here is a typical sample email soliciting sponsorship for an event. I’m keeping it generic just for this example but it’s pretty similar to dozens of offers I have received.
“Sponsorships available for upcoming Parade of Homes”
Show your support for your HBA by becoming a Presenting Sponsor
Your donation will be greatly appreciated – call for details
What do you think? Sounds like a little “begging” to me. For what it’s worth, these types of “asks” have worked OK over the years but in a tighter economy where member companies are searching for tools to increase their revenue and bottom line words like “support” and “donation” just do not have quite the same impact that they used to.
Your Association is one of the most powerful marketing tools a member can use to improve their business. The key is to show your members the value in terms that they can understand. Making comparisons to other marketing tools they use can really open their eyes to the “bargain” they are getting when it comes to Association dues.
When offering sponsorships for events compare the benefits your event offers to other types of media.
Let’s say you are selling a sponsorship for your upcoming Annual Banquet. This might sound a little over the top but it really is the truth. For example, if the attendance at your Annual Banquet is 150 business people you might consider presenting your sponsorship offer like this:
“Make One Sales Presentation and Reach 150 of the most Powerful, Successful and Influential Business People in the Community in Just 5 minutes!”
As the Presenting Sponsor of our most attended business event of the year you will have the opportunity to present your company to an audience of 150 business decision makers that directly or indirectly influence the buying decisions of literally thousands of employees, co-workers, family members and friends.
Calculate the lifetime value of just one or two new business relationships based on using this event as a powerful marketing tool and you will see that the marketing value far exceeds the investment of just $2500.00.
In addition to reaching 150 business decision makers and fellow members all at once in a gala setting, you will also receive a list of all attendees that you can follow up on in the coming year.
Compare this marketing tool to running an ad in the paper for a day or two or any other “mass media” advertising. By choosing this sponsorship as a marketing tool for your company you will get “face-to-face” with a specific, targeted audience that you can continue to work with to build business relationships long after the initial investment.
Since this sponsorship is an “exclusive” marketing tool you are assured that other businesses in your category will not be able to share in this one-time marketing opportunity.
Your HBA looks forward to working with you to help increase your bottom line.
It will be a pleasure to offer our support to your company.
The above is not just a sample of a sales letter or sales script. It is also a thought process. Your HBA offers tremendous “bang for the buck” to your members. Remember – “you have the carrot”. Use this same thought process for other sponsorships and non-dues revenue opportunities. Take a look at your current offers a make a list of all of the “features and benefits” and make sure your member “prospect” is aware of the real value you are offering.
Note – I have used and taught this “thought process” personally and it has generated literally millions of dollars in revenue for HBA’s around the country as well as other Associations and Organizations. For information on a custom Non-dues revenue sales and marketing process, send me an email – rob@theolivergroupllc.com.
Increase non-dues revenue by “changing the ask”
I am on a lot of email and newsletter lists for HBA’s around the country so I get the opportunity to see just how “offers” are made for things like sponsorships, publication advertising, event participation and a whole variety of other non-dues revenue generating items.
Here is a typical sample email soliciting sponsorship for an event. I’m keeping it generic just for this example but it’s pretty similar to dozens of offers I have received.
“Sponsorships available for upcoming Parade of Homes”
Show your support for your HBA by becoming a Presenting Sponsor
Your donation will be greatly appreciated – call for details
What do you think? Sounds like a little “begging” to me. For what it’s worth, these types of “asks” have worked OK over the years but in a tighter economy where member companies are searching for tools to increase their revenue and bottom line words like “support” and “donation” just do not have quite the same impact that they used to.
Your Association is one of the most powerful marketing tools a member can use to improve their business. The key is to show your members the value in terms that they can understand. Making comparisons to other marketing tools they use can really open their eyes to the “bargain” they are getting when it comes to Association dues.
When offering sponsorships for events compare the benefits your event offers to other types of media.
Let’s say you are selling a sponsorship for your upcoming Annual Banquet. This might sound a little over the top but it really is the truth. For example, if the attendance at your Annual Banquet is 150 business people you might consider presenting your sponsorship offer like this:
“Make One Sales Presentation and Reach 150 of the most Powerful, Successful and Influential Business People in the Community in Just 5 minutes!”
As the Presenting Sponsor of our most attended business event of the year you will have the opportunity to present your company to an audience of 150 business decision makers that directly or indirectly influence the buying decisions of literally thousands of employees, co-workers, family members and friends.
Calculate the lifetime value of just one or two new business relationships based on using this event as a powerful marketing tool and you will see that the marketing value far exceeds the investment of just $2500.00.
In addition to reaching 150 business decision makers and fellow members all at once in a gala setting, you will also receive a list of all attendees that you can follow up on in the coming year.
Compare this marketing tool to running an ad in the paper for a day or two or any other “mass media” advertising. By choosing this sponsorship as a marketing tool for your company you will get “face-to-face” with a specific, targeted audience that you can continue to work with to build business relationships long after the initial investment.
Since this sponsorship is an “exclusive” marketing tool you are assured that other businesses in your category will not be able to share in this one-time marketing opportunity.
Your HBA looks forward to working with you to help increase your bottom line.
It will be a pleasure to offer our support to your company.
The above is not just a sample of a sales letter or sales script. It is also a thought process. Your HBA offers tremendous “bang for the buck” to your members. Remember – “you have the carrot”. Use this same thought process for other sponsorships and non-dues revenue opportunities. Take a look at your current offers a make a list of all of the “features and benefits” and make sure your member “prospect” is aware of the real value you are offering.
Note – I have used and taught this “thought process” personally and it has generated literally millions of dollars in revenue for HBA’s around the country as well as other Associations and Organizations. For information on a custom Non-dues revenue sales and marketing process, send me an email – rob@theolivergroupllc.com.
Tuesday, September 1, 2009
“Get ‘em off the fence” using Direct Marketing 101
Are you ever frustrated waiting for people to make a decision about participating in an event, sponsorship, advertising in the newsletter or buying a ticket to a big function? Do people tend to wait until the last minute to make a financial commitment to something you are promoting or supporting?
Direct Marketing 101 is a simple, effective and very powerful tool to get people “off the dime” and get a decision from them. Businesses that use this “tool” properly increase sales and profits almost instantly…so can you.
Here’s the #1 Rule in Direct Marketing:
Always have an offer
Always enhance the offer
AND always have deadline for the offer
I know that it sounds way too simple but let’s take a closer look and see how we can apply it at the HBA.
The goal in using this three step process – “offer, enhance it, deadline” is to eliminate one of the toughest responses to overcome and you know what it is – “I’ll think about it”. How many times have you heard that phrase? How do you respond? Don’t you wish you get a simple “yes” or “no” and move on?
Before we go on it’s important to understand something. There are two kinds of manipulation. There is “negative” manipulation when trying to get someone to take an action or make a decision that is not in their best interest. I don’t ever recommend using Direct Marketing 101 for that purpose. But, there is also something called “positive” manipulation. Some people need to be “nudged” in the right direction to make a decision even if it is clear that it will be in their best interests. Other people (like me) tend to put decisions off until the very last minute. If you know that the offer you have (sponsorship, membership, event participation, etc.) is a good one and will be valuable to the person or company you are presenting it to, it’s OK to use a little “positive” manipulation.
Here is a quick overview of how to use Direct Marketing 101 when presenting a sponsorship offer:
When selling sponsorships you must always have a clear offer. An easy way to create an offer is to write a “top 10” list. Just make a list of ten ways (more or less) the sponsorship you are offering will benefit the “prospect”. Note: In future issue of this newsletter we’ll go into deep detail on how to make and present your offers.
Once you have your offer, the next thing that you need to do is “enhance” the offer (make it even better). The way to do this is to create a special “bonus” package that includes extra benefits that have a high perceived value but a low “cost” of goods. This package may include a free ad in your newsletter, a “seasons pass” to your General Membership Meeting, an additional smaller sponsorship (create one if you need to) to another non-related event or even waiving membership dues for a year (depending on the sponsorship investment). The goal is to create a package of “extras” that make the value of the sponsorship “far exceed the price”…kind of like a “but wait, there’s more!”
Lastly, here is the “key” to this whole process. You have to have a definite deadline for a response in order to give them the “enhancements”. Creating the deadline is a way of applying gentle “positive” manipulation and getting a decision much faster. All you have to do is follow these three steps:
1.) You present your sponsorship offer and the necessary financial investment with your “Top 10” list of benefits…not just features. Make sure the value exceeds the price and explain why.
2.) Present the additional “bonus” package in detail and the true value in dollars that it represents.
3.) Explain that in order to receive the additional “bonuses” that you must have a decision by a specific date and explain why. Your reasons will vary from offer to offer.
If you are offering a sponsorship, the reason for the deadline to get the bonuses can be as simple as “by getting your commitment early we can focus our energy and resources on creating the best event possible instead of on selling sponsorships so we are offering the “extras” to get a faster decision”. Isn’t that the truth? Another reason could be that “the faster we get our sponsors in place the faster we can start producing marketing materials and avoid last minute “rush charges” from suppliers”.
Be completely honest about why you are willing to offer “enhancements” for a quicker decision.
If you apply the Direct Marketing 101 Tool consistently to your offers you can not only get faster decisions and “eliminate” the “I’ll think about” response, in many cases you can raise the “investment” as well.
Make a list of other things you “sell”. Then think of ways to use Direct Marketing 101 to make the process faster and more profitable. Whether it’s selling ads in the newsletter, event tickets, golf event participation, Parade of Homes builder participation, PAC fundraising or anything else – Direct Marketing 101 is a great tool that you can use to get the results you want.
“Make the offer, Enhance the offer, Put a deadline on the offer” – Direct Marketing 101
Are you ever frustrated waiting for people to make a decision about participating in an event, sponsorship, advertising in the newsletter or buying a ticket to a big function? Do people tend to wait until the last minute to make a financial commitment to something you are promoting or supporting?
Direct Marketing 101 is a simple, effective and very powerful tool to get people “off the dime” and get a decision from them. Businesses that use this “tool” properly increase sales and profits almost instantly…so can you.
Here’s the #1 Rule in Direct Marketing:
Always have an offer
Always enhance the offer
AND always have deadline for the offer
I know that it sounds way too simple but let’s take a closer look and see how we can apply it at the HBA.
The goal in using this three step process – “offer, enhance it, deadline” is to eliminate one of the toughest responses to overcome and you know what it is – “I’ll think about it”. How many times have you heard that phrase? How do you respond? Don’t you wish you get a simple “yes” or “no” and move on?
Before we go on it’s important to understand something. There are two kinds of manipulation. There is “negative” manipulation when trying to get someone to take an action or make a decision that is not in their best interest. I don’t ever recommend using Direct Marketing 101 for that purpose. But, there is also something called “positive” manipulation. Some people need to be “nudged” in the right direction to make a decision even if it is clear that it will be in their best interests. Other people (like me) tend to put decisions off until the very last minute. If you know that the offer you have (sponsorship, membership, event participation, etc.) is a good one and will be valuable to the person or company you are presenting it to, it’s OK to use a little “positive” manipulation.
Here is a quick overview of how to use Direct Marketing 101 when presenting a sponsorship offer:
When selling sponsorships you must always have a clear offer. An easy way to create an offer is to write a “top 10” list. Just make a list of ten ways (more or less) the sponsorship you are offering will benefit the “prospect”. Note: In future issue of this newsletter we’ll go into deep detail on how to make and present your offers.
Once you have your offer, the next thing that you need to do is “enhance” the offer (make it even better). The way to do this is to create a special “bonus” package that includes extra benefits that have a high perceived value but a low “cost” of goods. This package may include a free ad in your newsletter, a “seasons pass” to your General Membership Meeting, an additional smaller sponsorship (create one if you need to) to another non-related event or even waiving membership dues for a year (depending on the sponsorship investment). The goal is to create a package of “extras” that make the value of the sponsorship “far exceed the price”…kind of like a “but wait, there’s more!”
Lastly, here is the “key” to this whole process. You have to have a definite deadline for a response in order to give them the “enhancements”. Creating the deadline is a way of applying gentle “positive” manipulation and getting a decision much faster. All you have to do is follow these three steps:
1.) You present your sponsorship offer and the necessary financial investment with your “Top 10” list of benefits…not just features. Make sure the value exceeds the price and explain why.
2.) Present the additional “bonus” package in detail and the true value in dollars that it represents.
3.) Explain that in order to receive the additional “bonuses” that you must have a decision by a specific date and explain why. Your reasons will vary from offer to offer.
If you are offering a sponsorship, the reason for the deadline to get the bonuses can be as simple as “by getting your commitment early we can focus our energy and resources on creating the best event possible instead of on selling sponsorships so we are offering the “extras” to get a faster decision”. Isn’t that the truth? Another reason could be that “the faster we get our sponsors in place the faster we can start producing marketing materials and avoid last minute “rush charges” from suppliers”.
Be completely honest about why you are willing to offer “enhancements” for a quicker decision.
If you apply the Direct Marketing 101 Tool consistently to your offers you can not only get faster decisions and “eliminate” the “I’ll think about” response, in many cases you can raise the “investment” as well.
Make a list of other things you “sell”. Then think of ways to use Direct Marketing 101 to make the process faster and more profitable. Whether it’s selling ads in the newsletter, event tickets, golf event participation, Parade of Homes builder participation, PAC fundraising or anything else – Direct Marketing 101 is a great tool that you can use to get the results you want.
“Make the offer, Enhance the offer, Put a deadline on the offer” – Direct Marketing 101
Tuesday, August 25, 2009
How to Better Communicate with your Members
Your members pay their dues and belong to the Association. There are certain benefits they expect to receive with their membership. They look to you to provide valuable information – information that will help better their business, ensure that they’re operating up to code or industry standards, info that could increase productivity and maybe increase networking opportunities that will ideally generate revenue possibilities.
When members first join, many are eager for information from their association. But by the end of the year, many may have become less enthused and even disenchanted with correspondence from their Association. Why does this happen? Because the information that they have received is often uninteresting or worse yet, completely irrelevant to them.
When Nick’s Painting received the 4th fax about plumbing classes, the 5th email blast recruiting volunteers for the economic affairs committee, or the 6th email about WHATEVER, you’ve lost him. Just like the boy who cried wolf, when the Association really does have pertinent and valuable information for Nick, he’s going to miss it. There has been so much irrelevant information sent to him that Nick has become weary of the “junk mail” and now, he just ignores or deletes all incoming emails from his association.
The only way to rectify and prevent this from happening is to make every message count. Segment your members. I know that this may take some time, but once you’ve categorized your members into “niches” the end result will be significant. If only builders received faxes about building code updates, only painters received information about painter networking round tables and only plumbers received coupons or special offers from a plumbing supplier, more of your messages will be read. That is a retention tool.
If a member feels that the Association really knows who they are and cares about them because they really do receive valuable information, then they will be more apt to renew. Sharing pertinent information with your members shows that you know them and care about them. By communicating with your members on a personal or “individual” basis, you are demonstrating that you “know” them and that they are not just one company out of 800 member companies - they are special. Creating this type of bond is a powerful and effective retention tool.
Make your message matter. Sending “blast” emails and faxes to your entire membership is ineffective, impersonal and borders on spam. Yes, your members provided their email addresses when they joined, but it wasn’t to get bombarded with irrelevant information. All day long we are continuously hit with marketing messages. If your association is part of that flood, there is no way the message is getting through unless you figure out a way to stand out and make it matter. Sending out useless information 8 out of 10 times is not the way to break through the clutter.
When they joined, your members gave you permission to communicate with them to build relationships and provide valuable information that will help them. It is your job to deliver these services.
Side Bar: From Kate O
Having been a part of associations and having heard from so many leaders and staff talk about how busy your day gets and how fast the day goes by I have a couple of fail safe tasks to make sure that you really are sending what "They - Members" will benefit from and stay away from wasting their time. And if you are the EO and have staff sending out these members make sure everyone is on the same page here - It's ALL about the renewals - RIGHT!
STOP before you press end, fax, or mail and ask yourself:
1. Is this the right group or groups to receive this message?
2. Will I be wasting a members time by sending this message or could it beneficial to their business?
3. Have I segmented the list to verify the needs and interests of our members before mass-blasting information?
Your members pay their dues and belong to the Association. There are certain benefits they expect to receive with their membership. They look to you to provide valuable information – information that will help better their business, ensure that they’re operating up to code or industry standards, info that could increase productivity and maybe increase networking opportunities that will ideally generate revenue possibilities.
When members first join, many are eager for information from their association. But by the end of the year, many may have become less enthused and even disenchanted with correspondence from their Association. Why does this happen? Because the information that they have received is often uninteresting or worse yet, completely irrelevant to them.
When Nick’s Painting received the 4th fax about plumbing classes, the 5th email blast recruiting volunteers for the economic affairs committee, or the 6th email about WHATEVER, you’ve lost him. Just like the boy who cried wolf, when the Association really does have pertinent and valuable information for Nick, he’s going to miss it. There has been so much irrelevant information sent to him that Nick has become weary of the “junk mail” and now, he just ignores or deletes all incoming emails from his association.
The only way to rectify and prevent this from happening is to make every message count. Segment your members. I know that this may take some time, but once you’ve categorized your members into “niches” the end result will be significant. If only builders received faxes about building code updates, only painters received information about painter networking round tables and only plumbers received coupons or special offers from a plumbing supplier, more of your messages will be read. That is a retention tool.
If a member feels that the Association really knows who they are and cares about them because they really do receive valuable information, then they will be more apt to renew. Sharing pertinent information with your members shows that you know them and care about them. By communicating with your members on a personal or “individual” basis, you are demonstrating that you “know” them and that they are not just one company out of 800 member companies - they are special. Creating this type of bond is a powerful and effective retention tool.
Make your message matter. Sending “blast” emails and faxes to your entire membership is ineffective, impersonal and borders on spam. Yes, your members provided their email addresses when they joined, but it wasn’t to get bombarded with irrelevant information. All day long we are continuously hit with marketing messages. If your association is part of that flood, there is no way the message is getting through unless you figure out a way to stand out and make it matter. Sending out useless information 8 out of 10 times is not the way to break through the clutter.
When they joined, your members gave you permission to communicate with them to build relationships and provide valuable information that will help them. It is your job to deliver these services.
Side Bar: From Kate O
Having been a part of associations and having heard from so many leaders and staff talk about how busy your day gets and how fast the day goes by I have a couple of fail safe tasks to make sure that you really are sending what "They - Members" will benefit from and stay away from wasting their time. And if you are the EO and have staff sending out these members make sure everyone is on the same page here - It's ALL about the renewals - RIGHT!
STOP before you press end, fax, or mail and ask yourself:
1. Is this the right group or groups to receive this message?
2. Will I be wasting a members time by sending this message or could it beneficial to their business?
3. Have I segmented the list to verify the needs and interests of our members before mass-blasting information?
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