Posts Tagged ‘associations’

IRS and Sponsorships

Thursday, July 15th, 2010

Just as the dust settles with health care reform and pharma regs, the IRS comes in with a heads up to associations:  your sponsorship dollars may be taxable as unrelated business income.  OK, the tax people didn’t say that directly but look at what they are doing at colleges and universities:  looking into corporate sponsorship relationships.  The IRS is also expanding the use of questionnaires to check out income sources of all non-profits.  Industry insiders are alarmed enough about these developments to warn associations now that they could be next.

Folks, this could be a big deal.  More associations are using sponsors to pay their speakers.  What happens to that money if it comes with a huge hassle factor?

Prediction:  associations will adjust how much they promote sponsors’ products and services.  We’re fine for now, but be ready to change your speech to allay their fears.

Are Meetings Back?

Thursday, July 1st, 2010

Yes they are, according to a recent survey by PCMA (Professional Conference Management Association), their foundation and AmEx.  Over 500 meeting planners were asked about plans for 2010 and 2011 this Spring and here’s what they said:

  • A net increase in off-site meetings of 23 percent in 2010 and 38 percent in 2011 when compared to 2009 numbers.
  • Cancellations have subsided:  89 percent stated they were not planning to postpone, cancel or rebook any meetings they had already booked in 2010 and 2011.

Industry insiders are reporting an uptick in attendance, some more than 12 percent in the association market.  That’s good news for experts speaking at these events.  More attendees mean more sponsorship deals, more prospects for those free experts and hopefully, less stress about paying speakers.  Not breaking out the Champagne just yet, but hey, this news is better than what we’ve heard before.  Let’s do a happy dance and get back to work.

Are Big Name Speakers In Trouble?

Thursday, June 10th, 2010

Conventional wisdom has it that a big-name speaker drives attendance.  Is that still true?  Kinda, but with caveats.  The economy and “teach me something now” audiences are redefining value and demanding real learning.  Some big-name speakers do that:  one association reports they had the biggest attendance since 2004 when they hired former President Bill Clinton to speak.

Some associations are going to the extreme by not paying speakers at all.  Does that work?  Not for one nameless association, who had to cancel their meeting filled with free experts because of not enough registrations.

The deciding factor:  does the prominent speaker give real information, or phone it in with platitudes from a canned speech?  The former still drives attendance; the latter doesn’t.  It’s just that simple…

Major Recovery Here For 2010

Thursday, May 20th, 2010

Another area of rapid recovery this year:  sponsorships in general.  Industry giant EIG reports that Corporate America continues to be on the prowl for new deals this year.  Other interesting stats:

  • 66% report looking for new deals — slightly more than 2009’s uptick of 60%
  • Budget cuts are still around, but not as much:  31% say they will cut sponsorship spending this year; yes, this is good news as 51% decreased spending last year.  About half report the same budget for 2010.
  • 41% spend NOTHING to evaluate prospective partnerships.  Translation:  decisions are very subjective and “fit” is open to interpretation.
  • Speaking of fit, co-branding new products shot up in popularity this year.  For us content producing machines, this means joining forces with associations and other industry groups is a no-brainer.

Hidden Opportunities on Healthcare Reform

Thursday, May 13th, 2010

At the risk of skating on thin ice, I just have to report in on some major whispering among insiders about the new healthcare reform.  Conventional wisdom has it that insurance companies will got into retail marketing mode to get customers who operate outside the employer plans.  This means more outreach and more targeted approaches aimed at diverse market segments.

And they aren’t the only players.  Watch for hospitals, physician groups and even pharma manufacturers to get into the act to a lesser extent.

Why do we care?  Two big categories of opportunities for experts:  1) more initiatives for marketing experts to help out on, more social media efforts for the geeks among us; and, 2) sponsorships will rise both in sports / events segments as well as associations.  And even better:  we have time to plant seeds in this fertile ground.  Marketing activity will go into full swing in 2013 and 2014.

Big Change in Association Sponsorship Deals

Tuesday, May 11th, 2010

Associations are retooling their sponsorship effort in light of the recovery.  Instead of a la carte deals for coffee breaks and speaker fees, many groups are pushing for multi-year relationships that go beyond their conferences and conventions.

Exhibit A:  Association of School Business Officials International (ASBO Int’l) tripled their sponsorship revenue from ‘06 to seven figures in ‘10 when they dumped 35 low-level deals for three packages:  strategic partner for ongoing success; event partners for meeting expenses; and affinity partners for those who provide discounts on products/services to members.

This trend will throw a monkey wrench into the speaker bringing in their own sponsors.  Your next best step:  Ask before you offer.  If the group has a system already in place, join the team by helping to promote the packages the associations have developed.

How Experts Help Associations in 2010

Thursday, April 22nd, 2010

Fabulous study just came out last month about the association market.  It compares the views of almost 1,000 associations from Spring 2009 to now.  The good news:  the expected mass exodus from face-to-face meetings to virtual events didn’t happen as expected.  Almost 61% predicted last year that revenue here would increase.  The reality:  only 33% reported this outcome.  And the economic climate didn’t impact sponsorship or fundraising as much as feared.

The best (and hidden) opportunity for experts showed up in this stat:  62% think overall revenue will stay the same or increase within 12 months.  Only 48% think membership will meet the same fate.  Translation:  associations plan to shift more revenue generation into upselling the industry and their members instead of ramping up growth from new members.  And that’s where our products, research, etc. can help.  This is one of the best ways to interact with communities that need your expertise.  Theme for 2010:  partnership.

2009 sponsorship spending stats

Tuesday, January 12th, 2010

Well, you’d think the world has come to an end.  Sponsorship spending didn’t hit the slight increase IEG projected.  Bottom line:  spending was down less than one percent, shaving $100M from the marketplace.  I am not crying in my beer about this.

Here’s why:  big-ticket categories such as those sports packages got hit hard.  Our neck of the woods (associations) increased almost three percent.  Even with that increase though, results were mixed.  Associations with year-round relationships did just fine with increased sponsorships.  Those who sold events and piecemeal items didn’t get the deals.

IEG predicts a 3.4 percent increase in sponsorship spending for 2010.  But that’s only for those who play by a new set of rules.

When brands go bad

Thursday, November 19th, 2009

When meeting industry association SITE (Society of Incentives and Travel Executives) decided to rebrand, guess what word was left out?  Incentives.  Now known as lavish boondoggles.  New buzzwords:  motivational experiences and/or engagement programs.

Heads up:  the same thing might happen to “motivational speakers.”  I hear rumbling about not hiring “those motivational speakers” as opposed to those with more educational content.  This unfortunate idea hasn’t gained much traction…yet.

The moral of the story:  watch your labels.

How associations will own their communities

Tuesday, November 17th, 2009

Interesting study out last month on how associations use social networking.  Omnipress surveyed 325 associations and learned this blinding flash of the obvious:  the top objectives are to increase buzz and attendance for their meetings.  What I found the most interesting:  35% of associations have custom-built social network systems.  When you own the structure of social interactions, you own the community.

Prediction:  larger associations will move in this direction and recruit smaller, related groups to spread out the cost.  And they are going to need a steady stream of content to keep folks engaged in a more enclosed setting.  Great starting place for anyone who wants to be famous in an industry.