How can you calculate the ROI of your association membership fees?

1 What is ROI and why does it matter?

ROI is a measure of how much value you get from an investment compared to how much you spend on it. It is usually expressed as a percentage or a ratio. For example, if you invest $100 in a project and earn $120 from it, your ROI is 20% or 1.2. The higher the ROI, the more profitable the investment. Calculating the ROI of your association membership fees can help you decide whether joining or renewing your membership is worth it for your career and business goals.

2 How to calculate the ROI of your association membership fees

To calculate the ROI of your association membership fees, you need to estimate two things: the benefits and the costs of membership. The benefits are the positive outcomes or results that you gain from being a member, such as increased sales, referrals, knowledge, skills, credibility, or recognition. The costs are the negative outcomes or expenses that you incur from being a member, such as the annual fee, travel expenses, time commitment, or opportunity costs. The formula for ROI is:

ROI = (Benefits - Costs) / Costs x 100%

For example, if you pay $500 per year to join an association and estimate that you get $2,000 worth of benefits from it, your ROI is:

ROI = ($2,000 - $500) / $500 x 100% = 300%

This means that for every dollar you spend on membership, you get three dollars back in value.

3 How to estimate the benefits of your association membership

Estimating the benefits of your association membership can be tricky, as some are tangible and easy to measure, while others are intangible and hard to quantify. To help you estimate the value of your membership, use data and evidence when possible. If that's not available, try using benchmarks and averages. Additionally, surveys and feedback can be used if benchmarks and averages are not reliable. Finally, if surveys and feedback are not feasible, use conservative and realistic assumptions based on your own experience and goals.

4 How to estimate the costs of your association membership

Estimating the costs of your association membership can be simpler than estimating the benefits, as most costs are tangible and easy to measure. However, you should also calculate any hidden or indirect costs that may influence your ROI. To help you estimate the costs of your association membership, consider including all expenses related to your membership, such as annual fees, travel, accommodation, meals, materials, and subscriptions. Additionally, factor in the time and effort needed for your membership activities, including attending, participating, or volunteering. Finally, don't forget to account for opportunity costs of your membership by weighing other opportunities or alternatives that could generate more value for you.

5 How to improve the ROI of your association membership

Once you have calculated the ROI of your association membership, you can use it as a guide to evaluate and improve your membership experience. To optimize the value of your association membership, choose one that offers relevant benefits for your niche, market, or career stage and aligns with your vision, mission, and values. Additionally, leverage the opportunities and resources provided by your association for business or career success. Furthermore, look for ways to reduce or avoid unnecessary expenses such as opting for online events or applying for scholarships. Lastly, monitor and adjust your membership outcomes and feedback in comparison to your expectations and goals to make changes or improvements as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?