McKinley Marketing, Inc.

Q: What is your association's general philosophy on membership dues?

A: The concept of "equity" is the philosophical driving force for our dues structure. Our main goal is to make the dues structure equitable for as many as possible. We understand that an association can't please all members one hundred percent of the time but we'll continue to try to make the system as equitable as possible. One thing that is important is to establish categories and then adhere to them. Put the categories in place and don't make exceptions.

Q: What does APTA do to ensure that your dues are meeting member needs?

A: We conducted a dues structure analysis in 2001. This led to the structure we have today and helped us roll-out changes to our membership. We didn't want there to be any surprises. There was a concerted effort to communicate with boards and committees with leaders who were informed about the dues changes. This helped to get everyone "on board" in advance. It worked… as objections were few and far between.

We also have what is called a "Dues Review Panel" which is a volunteer group made up of high-ranking member volunteers. This task force stands ready to make decisions should a dues conflict arise. We have several key members on the panel and this helps bring both a member and association perspective. Years back when we made some changes to our dues categories, APTA used this panel to settle conflicts. Over the past few years, the panel has been mainly inactive but remains on stand-by.

Ten years ago, leadership was spending lots of time making dues decisions on a case-by-case basis. Several years back, we tightened down and conformed to the established dues schedule. Purging the ranks of members that weren't paying what they're supposed to proved to be difficult initially, but necessary. The number of members we lost in this process was negligible. This is where they used the Dues Panel a lot.

Q: What percent of APTA's revenues comes from dues?

A:  Approximately 40% of total revenue comes from member dues. We have about 15 to 20 key members at the top of the dues structure. These are our largest members in terms of transportation revenue. Most of membership is in the lower half of dues scale.

Q: Other than dues, what are the major revenue generating programs at APTA?

A: Meetings, subscriptions and a big trade show which is held once every three years. The revenue from this show basically helps to sustain the association for three years. Also, we hold several major conferences every year. Educational programs and pubs (for members and non-members) also generate significant revenue.

Q: Tell me about the penetration level your association has achieved within core markets.

A: Like many other trade groups, we are missing hundreds of smaller agencies. Examples include transit companies with one bus… transit systems from small, rural areas, etc. We feel that you have to know where your membership is and concentrate on recruiting and retaining them. We felt that the greatest attrition rates were occurring in the smaller member area. They can't afford to get involved even if they can afford the dues - so therefore they get less from their membership.

Q:  What's the philosophy at APTA on the smaller agencies?

A:  Well, we are fighting the delicate balance of providing service to smaller members. We can't serve every small or rural outfit out there the way they want to be served. Their need for communications is similar to our larger members but smaller members have other needs that sometimes are a challenge to meet.

Our Director of Training is, however, looking to move some educational programming online. This will provide additional value for members that can't afford to travel. Additionally, we've created a "Basic Option" - or limited - membership. Members that select this membership can't serve as an elected official and they don't get all of our communications (thereby we save on postage). We also created an "Affiliate" category, which pulls a disparate grouping of members into a new category. Examples of affiliates are solo consultants and state transit associations.

Q: Have there been any changes since your dues structure was reconfigured in 2001?

A: We recently broadened the low end of the dues schedule. We found it was too broad and they wanted to appease the smaller members. We have several revenue categories in the lower range. We've had a category for Disadvantaged Business Enterprises (DBEs) for quite some time. This is yet another attempt to acknowledge smaller members. This gives woman-owned or disadvantaged companies a chance to pay reduced (but escalating) rates for four years before being incorporated into the appropriate dues category. Additionally, we added category for retirees several years ago.

Q: Do you have regularly scheduled dues increases? How does that work?

A: Just this year APTA had our first dues increase in eight years. Because of the poor economy over several years, we tried not to make any changes. Finally, we needed to increase dues to offset the cost of operations. We finally approved an increase this year which is tied to the Consumer Product Indexing (CPI). It was met with little objection - again due to careful communications.

Q: How have the changes since 2001 affected APTA's numbers?

A:  We have been stable in membership. While many others in related associations were hit with declines, we actually saw increases in membership in FY02 and in FY03. This is an accomplishment considering the tough times for associations. We're happy with our efforts.

Q: Do you think your dues structure works for your association? 

A: Just this year APTA had our first dues increase in eight years. Because of the poor economy over several years, we tried not to make any changes. Finally, we needed to increase dues to offset the cost of operations. We finally approved an increase this year which is tied to the Consumer Product Indexing (CPI). It was met with little objection - again due to careful communications.

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