There are more than 25,000 trade and professional associations, with memberships ranging from as few as 25 to well into the millions. Association budgets run from a shoestring to budgets that rival their corporate constituents’.

“Affinity marketing” relies on the good name of the trade association to market products or services to members. Members receive discounts on services or other concessions, and the association earns revenues based on member sales.

To the vendor, the ultimate advantage of trade association endorsements is to reduce number of sales calls and mailings by using target marketing through the strong “seal of approval” of the endorsing association. Here are the ways you can help trade associations generate increased income:

1. Cooperative purchasing programs-Virtually all products and services can be sold to association members. The best products are specific to the association’s members rather than those they can easily purchase from an office supply warehouse.

2. Member financial programs-Affinity credit cards, car rental or leasing, equipment leasing, collection services, accounting services, credit bureau, cash management, government grant access, group legal services, member loan programs, and foundation grants. Design a program which offers a solid product or service combined with easier access or less red tape.

3. Information access-Books, how-to manuals, reports, membership directories, correspondence courses, continuing education; seminars, workshops, certification, electronic network bulletin board and electronic mail, employee referral and job bank, speakers bureau, research and consulting, and conventions.

4. Marketing and advertising-Advertising slicks, marketing kits, novelty items, in-house advertising agency, co-op advertising, and association merchandise.

Many associations who represent smaller employers, develop, in conjunction with outside vendors, turn-key marketing programs that members can purchase for use in their local markets. Other associations launch nationwide advertising campaigns on behalf of their members to improve their industry image.

5. Insurance programs-The largest single non-dues income for many associations is insurance. The key is to find the association that represents the buyers of your insurance program or product.

A recent study determined that approximately one in four associations offers a sponsored property/casualty program, and more than half of the existing programs are offered in conjunction with a commercial insurance provider. The average association insurance program has an annual premium volume of over $8 million, and an average participation rate of almost 30 percent of the membership.

Prospecting The Association Market

Determine which association best represents the buyers of your product. There are over 400 national associations for banking and finance, 700 for business, 500 for education, 800 for manufacturing, and 1,100 for science. Pare the list to target your efforts.

Knowing your product means more than knowing its technical aspects: you have to know its buyers’ profile. The more specific you can be, the more targeted your prospecting becomes.

Now you are ready to locate potential association partners. Which associations do your customers belong to? Ask your customer for a letter of introduction to his association. The letter should include a brief description of how the member uses your product and why he believes it might assist others. The letter is a powerful door-opener since an association does not want to ignore a paying member’s recommendation. Your customer may also be willing to call the association to introduce you and your product.

Use a quality directory and accompanying mailing list which not only lists the associations’ names but details the associations’ membership, budget, subsidiaries, staffing, contact person, publications, and service offerings.

Interview your prospective association before you draft a proposal, then customize your proposal to meet the association’s objectives.

Your proposal should include (1) An executive summary-how your proposal would help the association meet its goals. (2) A company profile-detailing your company’s commitment to providing highest quality products and financial stamina to support the program long-term. (3) Your company’s experience-expertise in working with association members. A referral from a satisfied user, especially an association member, can be very powerful. (4) Program overview-summarize your offer, including the products and discounts to be offered, the royalties to be paid, and the program features available only to members. (5) Marketing calendar-detailing your commitment to promoting the proposed program to the association’s members.

Your agreement with the association should state each party’s expectations for each other and the program, as well as provide the legal framework. The agreement should include; the name of the program (usually including the name of the association and the vendor or the products to be offered); eligibility to participate, responsibilities of the vendor and the association, the products and services offered, fees and royalties payable, indemnification and the term of the agreement.