Running Your Association Like a Successful Business

2

• Mi l l ions of do l lars so ld in membership and sponsorship

• More than 250,000 sa les and market ing contacts annual ly

• Advisor to nat ion ’s top associat ions for bus iness growth and management

Moery Company Background

Why Associations Hire Us

Turning our experiences in selling sponsorships and memberships for associations into intelligence and insights for associations seeking growth.

Review membership models and sponsorship platforms for revenue optimization.

Compare associations with competitors to better understand the context of their membership growth efforts.

Initiate valuable conversations with members to provide candid insights about the awareness and relevance of the value proposition.

Provide actionable and achievable recommendations based on our experience “doing the work” – articulating association value proposition to prospects every day.

“Associations Like a Business” Consulting Services

The Moery Company c l i en ts began to ask us to ass is t w i th deeper unders tand ing o f the va lue p ropos i t i on o f membersh ip and sponsorsh ip sa les .

In response , we ac t i ve ly began bu i ld ing our consu l t i ng se rv i ces and ana ly t i c capab i l i t i es .

Our c l ien ts have rece ived da ta -d r i ven recommendat ions • Bo ls te r membersh ip g rowth• Benchmark aga ins t compe t i to rs• F ine - tune dues p r i c ing• Repackage o r bund le p roduc ts w i th

membersh ip leve ls• Redes ign sponso rsh ip campa igns

Client Question 1.How do We Compare to

Competitors?

Solution 1 – Competitor Review

• Analysis of each competitor• Comparison of major areas of

revenue and industry benchmarks• Comparison of dues schedules• Comparison of sponsorship plans

Deliverable – custom view of competition in client’s space

Example Competitor ABCDComparing Revenue to Mission

$4,532,162$613,669

$11,992

$1,765,000

$2,369

Dues

Meetings

Publications/Products

Sponsorship/Ads

Other

Mission is to ensure industry growth and focus as determined by members

ABCD TOTAL REV-ENUE

• Primary activities• Regulatory affairs to aid

members• Capitol Hill Day with legislators• Annual meeting w/ trade show• Robust sponsorship program

Competitor ABCD Membership

• Primary Members – Industry Manufacturers – Dues $750 to $9500– Can ho ld leadersh ip pos i t i ons– Compl imenta ry a t tendance a t CEO con fe rence and cop ies o f

magaz ine

• Associate members - Service Providers– Dues $1 ,500-$50 ,000– St ra teg i c Leadersh ip and Governance Oppor tun i t i es a t

reserved fo r h ighes t dues leve ls– Access to Execu t i ve Summi ts and Peer Group Par t i c ipa t ion a t

h ighes t dues leve ls– Adver t i s ing , sponsorsh ip , and exh ib i t i ng oppor tun i t i es inc lud ing

bus iness par tnersh ips (endorsement p rogram)

Staff Size vs. IndustryN

umbe

r of S

taff

Annual Association BudgetBased on ASAE data

<1M $1M to $2M $2M to $5M 0

2

4

6

8

10

12

14

16

18

20

AverageCLIENT

ABCD

EFG

Made case for more staff based on data for Client

Reported Lobbying Expenditures

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2012 2013 2104

ABCD

EFG HIJ KLMN

UVW XYZ

Data publically reported – opensecrets.com

CLIENT OPQ RST

Understanding Client’s political clout versus competition

Operating Ratio vs. Industry

LegendRevenue > AssetsRevenue = AssetsRevenue < Assets

*Averages based on association size from ASAE's Association Operating Report,14th Edition

Organization Size

Industry Average$10M-$20M >$20M

1.0 1.1

ABCD CLIENT EFG HIJ KLMN

2013 1.4 1.5 1.8 1.2 0.8

2012 1.4 1.5 0.7 2.0 0.9

2011 1.2 1.5 0.7 1.9 0.9

ASAE Operating Ratios were used to see weakness – noted in EFG and KLMN.

Most useful in analysis of fiscal strength of an association over time when considering mergers and acquisitions or d.

Example ComparisonRe

lativ

e Fo

cus

Resources Available

More Focus, More Resources

Less Focus, Fewer Resources

Focus is based on an analysis of funding available within an organization

Activity is based on efforts relative to other associations

Less Focus

More Focus

More Resources

Outliers tend to be the most interesting in this analysis. Like-sized and like-focused groups tend to group fairly closely.

Fewer Resources

Sample Meetings Comparison

Meetings

Less Focus

More ResourcesFewer Resources

EFG

HIJ

ABCD

KLM

Clients can see how they compare to competitors based on revenue for key areas such as meetings, advocacy, and programs

NOPQRS

TUVCLIENT

WXY ZABCDFRe

lativ

e Fo

cus o

n M

eetin

gs

Resources Available

More Focus

Client Question 2: Are my Dues Too High?

Solution 2 – Dues Analysis

• Comparison to competitors• Modeling of dues rates• Interviews with members and staff

Deliverable - Recommendations for adjusting dues rates based on external

and internal analysis

Comparison of Competitor Rate Cards

$0 $500,000,000 $1,000,000,000$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

CLIENT

ABCD

Member Annual Sales

Annu

al D

ues

At $75M Sales, ABCD and EFG Dues are higher $100K vs. $50K for CLIENT

EFGHIJKLM

Hypothetical ModelingWhat Would CLIENT Dues Look Like Using

ABCD or EFG Structure?

0 100 200 300 400 500 600$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

About $4.5M more in client dues if using ABCD or EFG schedules

Number of Members

Cum

ulati

ve D

ues

Modeling of impact of dues decrease for smaller members

$20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,0000

20

40

60

80

100

120

140

$50$500$1,000

Each line represents dues amount for smaller members

Total Dues Income From Larger Members

Num

ber o

f Upp

er T

ier M

embe

rs

There is no significant difference in total dues receipts if small member dues are $50 or $1,000 provided additional large members added

118 large members necessary paying $20K each to maintain current dues income

46 large members necessary at $50K each

Advanced Modelingof Dues Categories

$0 $25,000,000 $50,000,000 $75,000,000$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

Member Company Revenue

Dolla

rs S

pent

in D

ues P

er $

1000

Inco

me

$1M, $5M, and $10M in Revenue

A $1M Revenue firm would pay $2 of every $1000 earned, but a large firm would pay <$0.50

Used to show the discrepancies at the low end of the rate card and recommended smoothing the curve

Client Question 3: Who Are My Best Members?

Actually, this question isn’t asked, but we help clients understand anyway• Modeling of products and dues to see

contributions• Segmentation to show value of

products to member groups

Deliverable – Understanding of spending patterns of members and importance of specific tiers/groups of membership and

recommended product bundling

Trade Association Dues Curve

2 36 70 104138172206240274308342376410444478512546580$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000 ½ of dues line

Used for each as-sociation to il-lustrate contri-butions by members

Number of Members

Cum

ulati

ve D

ues

Typical Trade Association Curve and Implications for Strategy

1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106113120127$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Strategy based on low financial barrier Strategy based

on engagement and savings

Strategy based on exclusivity and access

Cum

ulati

ve D

ues

Number of Paying Members

Example of the Financial Return of Engagement

• The average member purchases from Super Product are 10 t imes the average for nonmembers

Average Super Product Purchases from Members vs. Nonmembers

Member Nonmember$0

$20,000$40,000$60,000$80,000

$100,000$120,000

Impact of Largest 25 Members Support on Client Association

Dues Convention Committees Total0%

10%20%30%40%50%60%70%80%90%

100%

Revenue from Top 25 All OthersLargest firms control committees and provide about ½ income to Client, but do not support the convention as much

Sample of Super Program as a benefit for a tiered or bundled membership

1 2 3 4 5 6 7 8 90%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TIER 2

Membership Category

Perc

ent P

artic

ipati

on TIER 1TIER 3

Super Program would be most appealing to Tier 2

Question 4: How can we revamp our sponsorship program?

Solution 4: Sponsorship Revamp

• Comparisons to competitors• Analysis of sponsor purchasing trends

in client’s• Interviews of sponsorship program

Deliverable – Recommendations of best practices in sponsorship program

structures based on internal and external data

Comparing Sponsorships

$- $20,000 $40,000 $60,000 $80,000

$100,000 $120,000 $140,000 $160,000 $180,000 $200,000

Premium Sponsorships

Comparison of competition’s premium-level sponsorships to see how Client compared

ABDC EFG CLIENT HIJ KLM NOP

Larg

est P

rem

ium

Spo

nsor

ship

Sample Sponsorship Analysis – Internal Data

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 $-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Number of Sponsors and Small Exhibitors

Cum

ulati

ve C

ontr

ibuti

on

3/4 Total

Three companies make up ½ income. Thirteen make up ¾ of income make up ½ income. Combined, 60% of the companies represent only 1/8 of income

1/8 total revenue1/2

Deliverables to Your Association

• Custom Solutions– Data-driven– Unique to your association

• Realistic Recommendations– Practical, actionable outcomes– Fiscally focused– Best practice based– Moery Co sales experience applied to

recommendations

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2014 Small Business of the Year

www.moerycompany.com |Office : 571-814-3443

Podcas t : Assoc ia t ion Labs Tw i t te r : @jpmoery

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105 Oronoco S t reet , Su i te 309 , A lexandr ia , VA 22314

Your Project Leader

JP Moery is the President and founder of The Moery Company. He has 25 years of experience in the association industry, having built a track record of success at the nation’s most influential associations.

JP previously served as Senior Vice President at the U.S. Chamber of Commerce where he oversaw the Association Committee of 100, the most prestigious group of association CEOs in the country. JP developed and launched a program that added more than 250,000 companies to the organization’s membership.

JP was also Executive Director for the American Trucking Association and Vice President of the Specialized Carriers and Rigging Association.

JP has experience in digital media, having served as Executive Vice President, Association Relations for the digital media company SmartBrief. Under his leadership, the number of partnering associations for SmartBrief doubled in less than 3 years.

He is a graduate of the University of Oklahoma and serves on the President’s Associates Advisory Council. JP is the commissioner of the elite youth Fastpitch program, Alexandria Tsunami, and manages its 18u and 12u teams. He was recognized as a “Champion of Character” by Fairfax County for the demonstration of sportsmanship he displays in youth sports. His wife, Diane and daughters Grace and Katie Jo live in Alexandria, VA.

Vice PresidentsVice President, Elizabeth H. Johnson, a member of The Moery Company team since its inception in 2010, is responsible for selling memberships and sponsorships for such organizations as the National Association of Manufacturers’ CMA, CQ/Roll Call, and SCG Legal – a global network of independent law firms.

With quality customer service a top priority, Elizabeth has led successful membership campaigns for our first client, Consumer Specialty Products Association (CSPA)—meeting and exceeding membership goals each year. In addition, Elizabeth sold record amounts of print and online advertising for CEO Update, growing and expanding new revenue opportunities for the publication. Prior to The Moery Company, Elizabeth worked within the association segment of Marriott’s prestigious global sales team.

Senior Vice President of Sales, Mike Thomas, a business development professional with vast association and media experience joined The Moery Company in 2013. Presently, Mike conducts sponsorship and membership campaigns for several organizations, including the American Coatings Association, Aluminum Association, Association and the Manufacturers Alliance for Productivity and Innovation.

Mike has nearly 20 years of experience in business development, sales, and management. Mike has worked with key associations including the Grocery Manufacturers Association, National Education Association, National Association of Manufacturers, and the National Retail Federation. Preceding his alignment with The Moery Company, Mike was the Director of Sales at Bulletin Media and Senior Sales Manager at SmartBrief.

Business Development TeamBusiness Development Manager, Bethany Murphy became a member of the Moery team in 2014. A seasoned sales associate, Bethany’s focus is on membership and sponsorship campaigns for several Moery clients, including the American Bakers Association, Council of Institutional Investors, Dangerous Goods Advisory Council, Greater Washington Board of Trade and the Manufacturers Alliance for Productivity and Innovation.

Bethany joined The Moery Company from Bulletin Intelligence in Washington, DC, where she was an Account Executive. With expertise in all phases of the sales cycle from prospecting to closing, Bethany also developed and expanded upon advertising revenue and created effective target marketing strategies for her clients.

Sales Associate Billy Harley, is the most recent addition to the Moery team. Billy is responsible for establishing contact and qualifying potential sponsors and new members for our clients; responding to inbound requests from prospects; the coordination of mass emails, and managing new accounts in our sales CRM. A graduate of Christopher Newport University, Billy comes to The Moery Company with a solid background in dedicated customer service.

Consulting TeamS e n i o r A n a l y s t , P a tt y L e e m a n , M B A , C A E , o f t h e n a ti o n a l l y r e s p e c t e d a s s o c i a ti o n c o n s u l t a n c y fi r m , A s s o c i a ti o n L a b o r a t o r y, i s a n e x p e r i e n c e d s e n i o r a s s o c i a ti o n e x e c u ti v e w i t h n e a r l y 2 0 y e a r s o f e x p e r i e n c e d e v e l o p i n g a n d l e a d i n g s t r a t e g i c a s s o c i a ti o n i n i ti a ti v e s . S h e l e a d s b u s i n e s s a n d r e s e a r c h e n g a g e m e n t s f o r p r o f e s s i o n a l a n d t r a d e a s s o c i a ti o n s a n d w i l l c o n d u c t fi n a n c i a l a n a l y s i s o n t h i s p r o j e c t o n b e h a l f o f T h e M o e r y C o m p a n y.

H e r w o r k e x p e r i e n c e i n c l u d e s t h e U . S . C h a m b e r o f C o m m e r c e a n d p r o f e s s i o n a l a s s o c i a ti o n s i n h e a l t h c a r e a n d e n g i n e e r i n g . P a tt y i s a C e r ti fi e d A s s o c i a ti o n E x e c u ti v e w h o h o l d s a M a s t e r s o f B u s i n e s s A d m i n i s t r a ti o n f r o m T h e G e o r g e Wa s h i n g t o n U n i v e r s i t y a n d M a s t e r s o f C i v i l E n g i n e e r i n g f r o m t h e U n i v e r s i t y o f H o u s t o n .

Management TeamAs Chief of Staff for The Moery Company, Amanda Freeze assists the CEO in managing the day-to-day business needs: meeting planning, scheduling, client relations, travel and other organizational responsibilities for the team.

Prior to joining The Moery Company, Amanda was employed by Affinity Center International, an association consulting firm where she developed a solid record of customer service, business development expertise, and organizational collaboration with association professionals.

Operations Manager, Diane Moery oversees the accounting operations, financial reporting and human resources for The Moery Company. Concurrently, Diane is a Board Member for the Hollin Meadows Partnership for Math and Science, an educational nonprofit foundation and the Mt Vernon-Lee Chamber of Commerce.

Diane has more than 15 years of experience in the areas of policy and government affairs. She served as Legislative Director to United States Senator Don Nickles and Senior Vice President at Fierce, Isakowitz & Blalock – a strategic government relations consulting firm.

Support Team

Editorial/Research Associate, Kim Gilliam joined The Moery Company in 2013. Kim produces the popular e-newsletter, conducts association research, and assists with the production of client presentations. In addition, she contributes to Moery marketing endeavors and manages our social media platform. Kim has more than 10 years of association publications experience, having served on the editorial staff of PT- Magazine of Physical Therapy.

Business Development Administrator, Kerry Doyle supports the Moery sales team with its business development campaigns and content management. In this capacity, Kerry manages The Moery Company’s extensive database to more effectively serve our client’s needs and support their goals. She prepares and manipulates data for import, maintains our growing database, and assists in the execution of our team’s sales process. A graduate of James Madison University, Kerry joined The Moery Company in 2013.