How to Build Revenue Streams That Grow Sustainably | Webinar Recap
More Revenue, Not More Work: Rethinking How Associations Grow
To do more good, associations need more revenue. But sustainable growth starts with understanding value, not simply finding more things to sell.
Associations are being asked to do more than ever. Members expect greater value, operating costs continue to rise, and Boards want organisations to demonstrate impact while protecting their financial sustainability.
The usual response is to look for new revenue opportunities. Another event, a new training program, a sponsorship package or perhaps an additional membership offering. Each might generate income, but adding more activities does not necessarily create a stronger organisation. Sometimes, it simply creates more work for teams that are already stretched.
The challenge is not always a shortage of revenue ideas. It is the absence of a clear process for understanding which opportunities are worth pursuing, who will pay for them and whether they can deliver a sustainable financial return.
This was the focus of our recent Answers for Associations webinar, Build Revenue Streams That Grow Sustainably, presented by Lindsay McGrath, Managing Director of Think Outside Group. Lindsay explored a practical approach to revenue creation that connects customer needs, organisational value, commercial choices and investment decisions.
The central message was simple: to do more good, we need more revenue. But revenue growth must strengthen the organisation, not exhaust it.
Why revenue needs a different conversation
For associations and not-for-profits, generating a surplus can sometimes feel uncomfortable. Organisations exist to serve members, advance professions and industries, and create broader community benefit. Commercial performance can appear secondary to these responsibilities.
Yet revenue and purpose are not competing priorities. Revenue funds the people, systems, advocacy, education and services that deliver an organisation's purpose. A sustainable surplus creates the capacity to invest in new opportunities, respond to change and continue delivering value when circumstances become difficult.
The more useful question is not simply how an association can increase its revenue. It is how the organisation can create greater value, develop reliable income streams and use that financial capacity to deliver more impact.
Lindsay introduced a seven-stage revenue creation framework that helps associations move from identifying a genuine need through to making informed investment and growth decisions.
1. Start with the need, not the product
One of the easiest mistakes in revenue development is beginning with a solution. An association decides to launch a course, create an event or introduce a service before establishing whether there is a meaningful problem people want solved.
A stronger approach starts with understanding the needs of the people and organisations the association serves.
Those needs can be functional, professional, social, emotional or aspirational. A professional might need technical knowledge to perform their role, connections to overcome isolation or recognition that supports career progression. An employer might need workforce capability, compliance support or access to qualified professionals.
These different needs can lead to very different commercial opportunities, even when the intended audience is the same.
Importantly, members may not always be able to articulate what they need. Some problems are well understood and openly discussed, while others remain unspoken or have not yet been recognised.
Associations have an opportunity to uncover these needs through member conversations, market research, engagement data and an understanding of changes affecting their sector.
No genuine need means no sustainable market. Before developing another product, understand the problem it is intended to solve.
2. Understand the value you can uniquely create
Identifying a need is only the beginning. The next question is whether the association can provide something of value that people cannot easily access elsewhere.
Associations often describe their offerings through features: access to resources, discounted events, newsletters, training courses or networking opportunities. These describe what is provided, but not necessarily why someone would pay for it.
Value comes from the difference an offering makes.
A training course might improve professional confidence or capability. An industry network might provide access to people and opportunities that would otherwise be difficult to reach. An accreditation program might establish credibility and professional recognition.
Associations also hold advantages that many commercial providers cannot easily replicate. Established trust, industry authority, professional communities and access to specialised knowledge can all contribute to a distinctive value proposition.
The commercial opportunity sits in connecting these advantages to a meaningful outcome for a defined audience.
Rather than asking what additional services can be offered, associations should consider what change they can uniquely help someone achieve.
3. Be clear about who benefits
Not everyone who benefits from an association's services is a member, and not every beneficiary is an individual.
An education program might benefit the professional completing it, the employer seeking greater workforce capability and the industry that benefits from improved standards. A research project might support members while also creating value for government, suppliers or organisations operating in related sectors.
Understanding the beneficiary helps an association determine who an opportunity should serve and what outcome the offering must deliver.
It also opens the conversation beyond traditional membership revenue.
Associations can create value for employers, institutions, suppliers and adjacent industries, provided those opportunities remain connected to their purpose and organisational strengths.
The important discipline is to define the audience precisely. A broad statement about serving an entire industry may be useful for explaining purpose, but it is rarely specific enough to develop a commercial offering.
The clearer the beneficiary, the easier it becomes to identify their needs, communicate the value and design a relevant solution.
4. Remember that the user is not always the buyer
One of the most important commercial distinctions is understanding who uses a service, who influences the purchase and who ultimately makes the financial decision.
Consider professional development. An individual employee may want the training, their manager may recommend it, but an employer or departmental budget holder may approve the expenditure.
These people can have different motivations. The employee wants confidence or career progression. The manager wants improved performance. The organisation wants measurable capability and a return on its investment.
If an association only communicates the benefits to the end user, it may overlook the person who controls the budget.
This is particularly relevant when developing corporate memberships, education, accreditation, licensing and partnership opportunities.
It also creates opportunities to design different levels of participation. An introductory offering may establish interest, while more comprehensive services provide additional value for organisations prepared to invest further.
Effective revenue development requires a clear understanding of who benefits, who influences the decision and who has the authority to say yes.
5. Choose a revenue model that can sustain the value
Once the need, value and buyer are understood, the association can consider how the opportunity should generate income.
Different offerings suit different commercial models. These might include individual transactions, subscriptions, memberships, licensing, marketplaces or partnerships.
The choice matters because the way revenue is generated influences customer behaviour, delivery expectations, staffing requirements and financial risk.
A one-off training event may generate immediate income but require substantial planning and promotion each time. A subscription model may create recurring revenue but also requires ongoing value and customer retention. Licensing an established resource could extend its reach without the association delivering every interaction directly.
There is no single model that suits every association.
The important test is whether the revenue model can deliver a sustainable contribution after accounting for the real cost of delivery.
That means understanding expected customer numbers, pricing, staff time, direct costs, repeat demand and the resources needed to maintain the offering.
Revenue alone is not a measure of success. An activity can generate substantial sales while producing very little financial benefit once the full cost of delivery is considered.
Associations should also examine concentration risk. If a large proportion of income depends on one event, customer or funding arrangement, the organisation may remain vulnerable even when revenue appears healthy.
The objective is to build a connected revenue model that delivers value, contributes financially and supports long-term sustainability.
6. Recognise that good ideas need investment
Even a compelling commercial opportunity will struggle without the resources needed to deliver it.
New revenue streams require more than enthusiasm. They need the right strategy, systems, people, delivery capability and accountability.
For smaller associations, this is particularly important. Teams are often already balancing membership, events, communications, advocacy and operational demands. Introducing another offering without considering capacity can create additional pressure rather than sustainable growth.
Before committing to an opportunity, management should understand what investment is required, who will be accountable and how the activity will be delivered alongside existing priorities.
Boards also have a role in establishing appropriate expectations. Not every new idea should require a large investment or a fully developed business case before it can be explored, but neither should organisations commit significant resources without understanding the likely exposure.
A proportionate approach allows management to test demand, assess delivery requirements and establish the commercial potential before recommending a larger commitment.
Good ideas create possibilities. Effective investment and execution turn those possibilities into results.
7. Make decisions based on evidence
The final stage of revenue creation is deciding what to continue, refine, stop or scale.
Associations can sometimes become attached to activities because they have always existed, attracted positive feedback or required considerable effort to develop. Yet none of these necessarily demonstrate financial sustainability.
A more useful approach is to establish clear measures before launching an initiative.
What level of demand would justify continuing? How much revenue must be generated? What contribution should remain after delivery costs? What customer outcomes would demonstrate value?
These questions help management and Boards assess opportunities using evidence rather than optimism.
Lindsay encouraged associations to start with a manageable commercial test, rather than immediately committing to a large program.
A 90-day pilot can provide an opportunity to validate demand, test pricing, assess delivery requirements and understand the likely financial return.
It also creates a clear point at which decisions can be made.
The aim is not to prove every idea will work. It is to learn which ideas deserve further investment before the organisation commits resources it cannot easily recover.
Start small. Prove value. Scale what works.
The real opportunity is to build a system, not another activity
Sustainable revenue growth is rarely the result of a single successful product. It comes from a repeatable process that helps an organisation understand its market, create meaningful value, identify the right buyers and make disciplined commercial decisions.
That process also creates a stronger connection between organisational purpose and financial performance.
When associations understand the problems they are uniquely placed to solve, they can move beyond constantly searching for the next sponsorship, event or membership offering. They can build a portfolio of opportunities that reinforce one another and strengthen the organisation over time.
For association leaders looking to take a practical first step, Lindsay suggested identifying four things:
- One customer problem worth solving.
- One offering the association has an advantage in delivering.
- One payer with a genuine reason and budget to buy.
- One commercial test that can be completed within 90 days.
The objective is not to generate more work for already busy teams. It is to make better decisions about where their effort, resources and investment will create the greatest return.
Because ultimately, more revenue is not the end goal. It is what enables associations to deliver more value, strengthen their sustainability and create greater impact.
Continue the conversation
Watch the full webinar: Build Revenue Streams That Grow Sustainably with Lindsay McGrath.
Explore Think Outside Group for more on strategy, sustainable growth and organisational performance.
Want access to more practical ideas, expert guidance and conversations like this?
Become an Answers for Associations member and connect with association professionals, industry experts and trusted partners across Australia and New Zealand. Access practical resources, learning opportunities and a community that understands the challenges of leading an association.