Article by Membership Manager Mike Swan
For many associations, a credentialing or certification program is their leading offering – the piece of the organization that sets them apart from the competition and gives them credibility in the field that they serve. This not only can strongly drive an association’s mission, but can create significant revenue opportunities including fees for applications and renewals, CEUs, study materials, study courses…the list goes on.
As our client associations consider these credentialing and certification programs, we work with them to do a cost-benefit analysis. Among many factors, we suggest they consider both costs that may be significant including marketing, psychometrics, program development, program maintenance and implementation, as well as the benefits including furthering their mission, a potential increase in membership (especially these credentialing offerings are discounted for paid members), and the revenue generated through study materials, the programs themselves, and other areas of support for the program.
The MHQ team recently supported the expansion of a client’s credentialing program. We were able to guide the development of a program where we budgeted very conservatively on both income and expenses, estimating a 32% profit margin in the first year and increased profitability in future years.
When we proposed this expansion, however, financial benefits were not the key driver. This program engages new professionals about to graduate from their college programs in the associations’ profession.
Our goal is for the client association to be one of the first professional relationships for these new professionals, where they can earn a “badge of honor” and begin their careers with a strong advantage. We aim for the client association to provide a professional home from the outset.
This new credentialing program is as much, if not more, about building community through healthy member retention, engagement, and ensuring a continuous pipeline of new leaders with diverse perspectives committed to a united standard of excellence.
For the long-term strategic outlook of an association, that’s priceless.
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About MHQ
Management HQ (MHQ) is an accredited, full-service association management company. Our diverse team does our work through a lens of equity. We support boards so boards can focus on mission. MHQ manages the full business of client membership-based organizations, including providing each client an executive director and a full management and operations team. MHQ serves associations and their members in these sectors: Government, Information Sciences / Education, Human Services, and Identity-based Associations.
For more about MHQ, visit https://www.management-hq.com/.
