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Addressing Board Knowledge Gaps
VIEWPOINT
Getting Together
GUEST ARTICLE
Using Technology To Improve Board Performance
GUEST ARTICLE
Changing Demographics and Globalization Demand New Strategies

GUEST ARTICLE
Virtual Chapters in Associations


GUEST ARTICLE
Association Toy or Tool?


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Impact of PIPEDA on Charitable and Non-Profit Organizations
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GUEST ARTICLE - Cynthia D'Amour

Virtual Chapters in Associations

In today's busy world, many associations are exploring the idea of developing and investing in virtual chapters.  On the surface, it seems like a fairly easy way to keep members connected — and has potential to make your association a lot of money once you get past the sunk costs.

As with any potential new product or service, it's important to do competitive intelligence work identifying your competitors — new and old. 

It's a common mistake to assume competition is the same for all products and services.  When you venture into the on-line world, all sorts of new players can line up to compete for your members' dollars.

For example, one of the associations I recently worked with was considering instituting virtual chapters.

We went to the web to explore the competition.  When I did an Internet search on what should have been the association's key word, over 250,000 listings were found.  An entrepreneur was named in three of the top five listings.

The association, who claimed to be "the source" for this profession and education, did not show up until the third page — and that was a listing for one of its 100 chapters.  The national association did not show up until the fifth page.

Most Internet research says that surfers rarely go beyond the first three pages of search results.

The entrepreneur with the top listings has a no-fee membership web site directed to the exact same members as my client.

The entrepreneur offered tons of articles, chat rooms, bulletin boards, career services — including job postings and mentoring.  He also had an alliance with a vendor to be able to provide education programs at special rates for his members.

It looked like he made money on the ads and commissions off the variety of for-pay services such as the education programs.

As I dug some more, we learned that he also had over 3,000 members!

Venturing onto the Internet for virtual chapters will possibly put your association into stiff competition with Internet marketing savvy entrepreneurs who can offer their memberships for free.

On-line associations are often one person organizations supported by alliances and automation and their overhead is practically nonexistent.

Plus, they can offer practically everything you do — on-line education programs, on-line community, books, CDs, software, advertising opportunity for supplier members, etc.

This research begs a tough question: Why should your members pay your dues for a similar virtual chapter that they can access for free? 

Loyalty is not as common with members as it used to be. It's not realistic to expect members to pay hundreds of dollars in dues "just because."  Guilt that belonging to your association is the "right thing to do" also has lost some of its persuasive power.

So what is an association to do? The two areas where I don't see on-line entrepreneurs venturing much:

  1. Lobbying — Why should they get involved in this non-profit focused area? Some rock and mortar association is already doing the work — plus, the entrepreneurs are focused on making profits.

  2. Face-to-face interactions for members — some on-line entrepreneurs try to encourage local hookups; however, I haven't seen a lot of success in this area — it takes more manpower than they want to invest.

Your in-person chapter involvement opportunities may be the piece that gives you the edge over the Internet entrepreneurs.

Should you venture into the virtual world?  Perhaps.

However, be aware. There's a whole new bucket of competition out there — who have been marketing on-line for years.  Do your research diligently, go into it with your eyes open and have a clear head about the opportunity cost.

Cynthia D'Amour is a growth strategist and leadership coach who works with associations that want to get more members involved in their association. www.chapterleaders.com   ©2004 Cynthia D'Amour

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JANUARY 2004
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