Membership Organizations

Membership Organizations

Brief Excerpt from Industry Overview Chapter:

Organizations in this industry promote the business, professional, and political interests of their members. Major organizations include the AARP, the American Medical Association, the National Education Association, and the National Rifle Association, all based in the US, along with the International Chamber of Commerce (France) and the International Bar Association (the UK).

COMPETITIVE LANDSCAPE

Demand is driven by business and political activity. The profitability of individual organizations depends on membership dues and effective marketing. Large organizations have advantages in diverse membership. Small organizations can compete effectively by serving niche industries and local markets. The US industry is highly fragmented: the top 50 organizations account for less than 20% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major sources of revenue include membership dues, convention and seminar fees, contributions, and publications. Revenues may also come from testing and examination services. An organization may offer members certification to ensure proper qualifications or to designate level of expertise. Other non-dues related revenues may include sales of services and merchandise. For example, AAA offers roadside assistance and maps.