Membership Organizations

Organizations in this industry promote the business, professional, and political interests of their members. Major organizations include the AARP, the American Medical Association, the National Education Association, and the National Rifle Association, all based in the US, along with the International Chamber of Commerce (France) and the International Bar Association (the UK).

Most membership organizations generally operate within a single country or region of the world, though some larger organizations have international affiliates, or operate through a global network of regional offices. The growing importance of the global market has led membership organizations to focus more attention on international issues.

The US industry includes over 40,000 establishments (single-location organizations and units of multi-location organizations) with combined annual revenue of about $80 billion.

Religious organizations, civic and social organizations, grantmaking organizations, and social advocacy organizations are not included in this industry. Business & Professional Associations and Labor Unions, which are included in this industry, are covered further in separate profiles. Similarly structured groups with different missions are covered in the Health Fundraising Organizations and Nonprofit Institutions industry profiles.

COMPETITIVE LANDSCAPE

Demand is driven by business and political activity. The profitability of individual organizations depends on membership dues and effective marketing. Large organizations have advantages in diverse membership. Small organizations can compete effectively by serving niche industries and local markets. The US industry is highly fragmented: the top 50 organizations account for less than 20% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major sources of revenue include membership dues, convention and seminar fees, contributions, and publications. Revenues may also come from testing and examination services. An organization may offer members certification to ensure proper qualifications or to designate level of expertise. Other non-dues related revenues may include sales of services and merchandise. For example, AAA offers roadside assistance and maps.

Organizations generally hold annual meetings, which may involve trade shows with exhibits that showcase products and services. Membership organizations also sponsor quality and certification standards and conduct industry research and gather statistics to provide information for members, government groups, and the general public.

Organizations may represent groups of individuals or businesses within an industry. By representing large numbers of companies and people, organizations can collectively promote group interests more effectively than can individual members. As advocates for members, organizations may actively monitor government regulations and lobby public officials for favorable legislation. Political action committees (PACs) are organizations that raise and donate money to political groups to further industry interests. Show more