Business & Professional Associations

Business & Professional Associations

Brief Excerpt from Industry Overview Chapter:

Companies in this industry promote the business and professional interests of members. Major associations include the American Bar Association, the American Medical Association, the National Association of Realtors, and the US Chamber of Commerce (all based in the US), as well as the Architects' Council of Europe (Belgium) and the Medical Protection Society (the UK).

COMPETITIVE LANDSCAPE

Demand is driven by business expansion and job growth. The profitability of individual associations depends on the ability to expand dues-paying membership. Large associations have economies of scale in marketing. Small associations can appeal to businesses or professionals in niche industries or serve local markets. The US industry is fragmented: the top 50 business associations account for about 25% of revenue; the 50 largest professional organizations account for about 35% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major sources of revenue include membership dues (45% of revenue); conferences, meetings, and trade shows; and program services including government fees and contracts (over 15%). Additional revenue sources may include trade, career, technical and professional development training programs, and contributions, grants, and investment income. Business, or trade, associations represent groups of businesses within an industry, whose members are typically individual companies. Professional associations represent groups of individuals within a specific field, such as law, medicine, or science. By representing large numbers of companies and professionals, both types can collectively promote group interests more effectively than can individual members. Most associations operate at regional, state, or local...