Trade Associations

To truly benefit from trade associations, you have to know how to use them, and what to look for in one. They serve two basic purposes, and understanding what those purposes are, and how they work, is the difference between disappointment, and benefit.

The first purpose is to allow business owners to network together, and to provide an organization that helps to promote the trade itself - not necessarily the individual businesses. Networking with other business owners is NOT a means of advertising!

What it IS, is a means of brainstorming, finding knowledgeable help, and finding people to collaborate with. Virtually any trade association can provide those benefits, but not all trade associations have members who understand that this is why they are there!

The second purpose is marketing benefits. Again, virtually all trade associations have SOME kind of marketing benefits, but the type varies greatly, as does the value. Here are some types and what they mean, and what they are worth:

1. Marketing to members. Forget it unless you sell products to business owners. If you are in a trade association for soap makers, and you sell soap, and your soap ad goes out to 450 other people who are all trying to sell soap, your ad is WORTHLESS! This kind of marketing is ONLY valuable to people who are selling soap making supplies. And then only if the trade association is not overpopulated by other soap supply marketers!

2. Marketing to the general public. This can be either targeted ads, or general ads, so the value can vary greatly, but it usually has far more value than marketing to members. This is a sign that your trade association is concerned with giving meaningful benefits to members, and that it is run by someone who understands the fundamentals of successful business.

3. Co-op Marketing. This is marketing where you can participate in group marketing collaborations. For example, the organization will purchase a full page ad in a magazine, and you can purchase a small part of that for less than what it would cost you to purchase it individually. The value of this depends on where the ad is being placed, and who else is placing an ad at the same time. The down side is that your ad will appear on a page full of ads for similar products. If you offer something unique, then it can be valuable. If you don't, then your ad will get lost. You always have to pay for this kind of ad, over and above your membership fee, so assess carefully.

4. Events and Projects. These can be very beneficial, because you can participate in an event that gives you greater exposure, or you can get in on viral marketing projects or other types of marketing projects that help your business to grow if you participate. Organizations which offer these either as part of the membership, or at a reduced fee, are well worth considering.

Trade Associations usually have a membership fee. Some have a free trial, or a lesser free membership so you can try it out. But usually the real benefits are reserved for paid members, and it can be difficult to know ahead of time whether it really is going to benefit you.

Do not sink more than you can afford into a trade association in the hopes that it will help your business grow to pay for it. Try something less expensive first, and look for benefits that have a real potential to return higher sales, and not just a warm fuzzy feeling.

Written by Laura Wheeler