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When membership pays
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May 1, 1998: 2:18 p.m. ET
Can joining groups like the Chamber of Commerce win you customers?
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NEW YORK (CNNfn) - Do memberships in professional associations pay off for the small-business owners who join them?
Many business owners say they benefit from joining organizations like the local Chamber of Commerce, so long as the dues aren't too steep or the obligations of membership too stringent.
Those who invest in memberships say doing so often brings them extra business, turning annual dues into money well spent.
"I think (joining up) gives (chamber members) business," said Gail Alsobrook, president of the Auburn, Ala., Chamber of Commerce.
The average customer might not care if your business belongs to the local Chamber of Commerce, but a fellow entrepreneur well could.
Chamber members tend to display fierce loyalty to other Chamber members, so if you're hoping to do a lot of business with commercial customers, you might fare better if you sign up.
"A Chamber membership is a sign of commitment to the community -- and we don't look as kindly upon companies that refuse to join," said Karen Gentleman, who owns an Indianapolis marketing-consulting firm and serves on her local Chamber's board of directors. "We do look askance at businesses when they pull their membership."
Alsobrook recalled one Auburn Chamber board member who discontinued doing business with a company when he learned the firm didn't have a Chamber membership.
Conversely, if a Chamber member does support your business, expect a strong invitation to join.
Nicole Skinner joined the U.S. Chamber of Commerce when her interior-decorating business in Burnt Hills, N.Y., received some work through one of its members.
"I was going to say "no" (to signing up), but then I got a job from one of (the chamber's members), so I ended up joining," Skinner said. "They had a lot of information about minority- and women-owned businesses. They had information on loans I could get to help build my business. I thought, "Geez, that's my next step.'"
Membership has other privileges.
Alsobrook said the Auburn Chamber's 778 members -- about 88 percent of which are small businesses -- receive a variety of discounts on things ranging from long-distance service to Internet access.
Auburn Chamber members can also launch Web sites at a discount, as well as advertise on the Chamber's own Web page.
Finally, members can participate in a number of business and management seminars.
Chambers of Commerce base their annual dues on the number of employees your business has. An Auburn business owner with two employees pays $189 a year. Bigger companies pay Chamber fees that run into the thousands of dollars.
Of course, failing to belong to the local Chamber doesn't necessarily spell doom for your company.
Clark Van Hauen says his Cedar Falls, Iowa, shoe store suffered no drop in business when he quit the local Chamber some six years ago.
Van Hauen, who's been in business since 1962, said he had several personal reasons for wanting to discontinue membership.
So when the Chamber declared its support for a local-option sales tax -- something Van Hauen opposed -- the group's stance served as "a good excuse" to go ahead and drop out, he said.
"They've tried (to get me to rejoin), but they've given up," Van Hauen said. "It's all been friendly, but I'm just not interested in going back."
Professional niche organizations
Joining an association that specializes in your type of business can also increase your exposure, especially with those in your field.
Marketing consultant Gentleman pays $220 a year to belong the International Council of Shopping Centers, and $125 a year for membership in the American Marketing Association -- money she considers well spent.
"I've gotten direct references (from professional associations) that have resulted in paying jobs," Gentleman said. "Through these associations, you get your name out there. You can speak at more conventions, write articles for (the group's) magazine and have people know your name."
Skinner pays $260 a year to retain her certification with the American Society of Interior Decorators, and says ASID membership is more than just a piece of paper.
The small-business woman said the group's monthly literature "keeps me very updated on what's going on in the design world," while ASID resources are helping her prepare for the National Certified Interior Decorator exam.
When to say 'no'
Still, small-business veterans advise that you bear in mind that membership in any organization carries obligations.
Gentleman joined -- then quit -- her local Rotary Club because "the time commitment was just too daunting."
The entrepreneur explained that the club expected members to attend a meeting every week -- and called when her attendance slipped below 50 percent.
Gentleman also turned down an offer to join the Better Business Bureau, despite the fact that the group "said people had been calling ... to get a rating (on) me. I said, 'I just find that hard to believe, since a service business like mine is based almost completely on relationship.'"
Skinner, the interior decorator, recommends upfront research before joining any group.
"I try to see if I can go to a meeting first," Skinner said. "I want to get a feel for (the organization) first -- read a lot of their literature and see how (joining) would benefit me.
"You have to be selective, because it's your money," Skinner said. "And your money goes so quickly."
-- by Margaret Nowak for CNNfn Interactive
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