What are the Benefits of Working with an Association Management Company?
Association Management Companies (AMCs) deliver proven solutions and support for sustainable, thriving associations. How? The AMC Institute has pulled together a wealth of research and information to illustrate how partnering with an AMC is beneficial to associations.
2020 Performance Study: The AMC Business Model
The AMC business model offers growth in revenue and income, stability, and professional development for staff and stable leadership for association clients. An executive summary of the research is available on the AMC Institute website.
Growth in Revenue and Income
- Growth rates in revenue and income are comparable regardless of client association size (as measured by revenue) or whether the client association was previously managed by an AMC or other model.
- AMCs have an immediate positive impact on new clients. In the first year under an AMC management, on average, associations realized an increase in gross revenue of 9.6% and an increase in net operating income of 13.7%.
- AMCs drive long-term growth. On average, client associations have grown total gross revenue by 90% during their time under the AMC model.
Stability for the Association and the Workforce
- Associations have been clients of AMCs, on average, for nearly 13 years, with 21% of associations having been clients for 20 years or longer.
- Large associations are more likely to stay with an AMC for the long haul. The average tenure of associations with $3M+ in gross operating revenue was 22.3 years, about twice as long for associations with revenue of less than $3M.
Opportunity: Professional Development for Staff
- The AMC business model offers professional development for staff and stable leadership for client associations— Executive Directors/Chief Staff Officers have been employed by AMCs an average of nearly 10 years and they have led their associations an average of nearly 8 years.