Yes, we do know each other!

Why belonging to an association can be good for business-Dianne D. Beaton, CGA, CAPS

What’s more effective, a solicitation email from an unknown business or one from a fellow Trade Association member? Are you more likely to accept a cold call from a stranger or a call from someone with whom you already have a working or social relationship? The answer is obvious, but there are many good reasons to join trade associations aside from gaining new customers. They include relationships with industry leaders, education on leading trends and technologies, worthwhile volunteering opportunities, honing professional skills, networking and peer support.

The opportunities to join trade and business associations abound. However, many companies miss out on these opportunities by failing to join the right organizations that would help support their businesses. Some of the business owners we talk with are rightfully concerned about the commitment in time and money as well as the perceived pitfalls of being away from their business while doing association work. They can’t calculate the ROI or clearly envision the benefits of membership. Some who have been former trade association members say they didn’t get much out of it. When asked what they put into it, the answer is usually, “not much.” So what is association membership really all about?

Membership means you’re willing to make a commitment, specifically, commitment in an area of mutual interest to your business prospects. Furthermore, this commitment is best demonstrated by serving your association on committees, working at events and in administrative roles. Rolling up your sleeves with fellow members forms social and working bonds with people your business may be in a position to serve. Those bonds are fortified by the loyalty that stems from working relationships and they result in business referrals.

There are two major strategies to joining trade associations: 1) to support, promote and learn from your own industry, and 2) to connect with prospective customers in a vertical market that your business specializes in serving. This is often called an association membership whereby your firm isn’t really part of the industry other than as a provider of business services. It’s a good idea to execute both of these strategies simultaneously to maximize the benefits derived from working with fellow professionals in a mutually supportive way.

Intuit, the maker of QuickBooks, recently published in their Small Business Center Blog, a list - 5 Ways That Joining a Trade Association Can Help You Boost Business. We excerpt and edit the five below:

1. Tap into knowledge. Odds are that someone, somewhere, in the industry has already discovered the solution to a vexing problem in your particular niche. Workshops, meet-and-greets, newsletters, blogs, and forums create opportunities to share those best practices and fresh ideas.

2. Enhance your reputation. Trade associations sort out bad apples through self-regulation, which bolsters the reputations of all their members. Professional organizations often award credentials and certifications, too, which can help to build consumer confidence in your products or services.

3. Make personal connections. Note that some small-business owners choose to join a group whose members are decision-makers in their target markets vs. their peers. For example, a social media professional may get ideas and best practices by participating in a marketing association but generate new business by hobnobbing with members of an automotive trade group.

4. Increase your purchasing power. Trade associations often arrange for members to receive discounts on certain products and services. These perks may include the option to enroll in group health insurance. For example, the Retailers Association of Massachusetts began enrolling its members in a group-purchasing cooperative for health insurance in February 2012. The program offers some 4,000 small businesses a half-dozen health plans that are far less expensive than what they’ve been paying on their own.

5. Gain political clout and expertise. Trade associations bring competitors together, turning one small voice into a persuasive, collective shout! This can be particularly helpful when independent businesses need to mobilize quickly, such as when facing proposed political initiatives that threaten the industry.

Similarly, Forbes offers a great piece on four benefits of association membership highlighted here:

·       Education: Educational topics can include trends, best practices, new techniques, etc. Some associations will even provide training programs and materials for employees.

·       Research: Many associations conduct market research and analysis on their specific industries. White papers and research reports can offer great insights and have helped me stay ahead of others.

·       Advocacy: When you become a member, you have an organization dedicated to protecting and advancing the needs of your industry. Having a dedicated team to lobby and advocate on your behalf is powerful.

·       Networking: You can learn from others in your industry and could even create alliances or partnerships. Associations also offer a bridge to communicate with competitors in a collaborative environment.

2DiFore Marketing Solutions has been a strong supporting “active” member of the National Association of Home Builders, Greater Manchester/Nashua Home Builders & Remodelers Association and the New Hampshire Home Builders Association for many years. We’ve also been active members of several chambers of commerce. The value of the relationships we’ve gained through our memberships is priceless. The quality and stories behind these relationships would take several more blog articles or even a book to adequately describe.

Dianne D. Beaton serves as the NAHB National Associate Chairman which is a Junior Office position within the NAHB Federation. She was recently recognized as the 2014 NAHB Associate Member of the Year at the International Builders Show in Las Vegas.