Anyone who’s spent any time managing associations will appreciate the following Q&A. Most organizations have struggled with pricing: How much should we charge for membership? Should membership pricing be tiered based on revenue? Should membership be for the individual or the organization? How do we communicate value, and not just price increases?
These and many other questions—sponsorships, education, attendee fees, revenue mix—are a big part of the annual cadence for people in association management. A budgeting ritual. It can all be a major challenge, and often, says Michael Tatonetti, founder of the consulting firm Pricing for Associations, it comes down to guesswork.
We met Tatonetti at the recent PAR (Professionals for Association Revenue) RevUP Summit, held this month in Annapolis, Maryland. “We get associations,” Tatonetti’s website says. “We have executive experience in associations. We also get pricing. We get the data analysis, market research and testing, and strategy to land the best recommendation for your value and pricing needs.”
It’s all a fascinating and critically important topic for association executives. Here’s our Q&A.
Fox Tales: What’s the biggest challenge associations have in establishing value, and through that, pricing?
Michael Tatonetti.
Michael Tatonetti: The biggest challenge associations have in establishing value and pricing is clarity. Most do many good things: Education, networking, advocacy, certification, events. But members don’t feel value from a long list—they feel it when something solves a problem or moves their career or organization forward.
That’s where most associations struggle. They describe what they do, not why it matters. And when that connection to outcomes isn’t clear, it becomes hard to justify price or growth.
Another big gap is measurement. Associations often rely on anecdotes—what they “hear” from members—instead of structured research. Without data on what different member segments actually value, pricing becomes an emotional decision. Fear takes over: “What if people won’t pay?”
And then there’s mindset. Many associations treat pricing as a fairness issue rather than a strategy. But members don’t want “cheap.” They want “worth it.” When associations learn to talk about return on investment—not just cost—they shift the entire pricing conversation from defensive to confident.
Fox Tales: What’s a common mistake?
Tatonetti: The biggest mistake I see is treating pricing like a math problem. They focus on the math instead of the meaning. Associations often set dues or event fees by comparing to peers or adding 3% a year. That’s not strategy—that’s guesswork.
The second mistake is ignoring segmentation. Members vary widely by size, stage, and engagement. One-size-fits-all pricing almost always underperforms.
Even when they do the research, some associations miss the communication step. You can have the right number, but if members don’t understand why it’s changing, they’ll resist it. The story matters as much as the spreadsheet.
And lastly, pricing can’t be a once-a-decade project. Expectations change fast—associations need pricing governance built into their annual planning. The healthiest organizations treat pricing as an ongoing learning process, not a one-time decision.
Fox Tales: If you had to rank the key association revenue streams, what would they be?
Tatonetti: If I had to rank the main association revenue streams, I’d say:
- Membership. It’s the foundation. Predictable, recurring, and builds loyalty.
- Education and digital learning. High-margin and scalable, and where I see the most growth.
- Events. Still valuable for connection and energy, but expensive to run.
- Sponsorship and exhibition. Important, but variable and market-sensitive.
Fox Tales: What should the share of total revenue be for these components?
Tatonetti: A healthy mix would be about 40–50% membership, 20–25% education and digital learning, 15–20% events, and 10% sponsorship and exhibition.
From a profitability standpoint, I’d expect roughly 80% of profit to come from membership and education, and 20% at best from events and sponsorship. Events create community and momentum, but they rarely drive margin. The sustainable growth happens where value is scalable—through membership and learning.
Fox Tales: How did you get started in your pricing business?
Tatonetti: I got my start in pricing because I saw the same pattern everywhere: Associations doing incredible work, but struggling to explain their value in business terms. They’d say, “We know we’re worth it,” but couldn’t quantify what “worth it” meant.
My background is in pricing strategy and behavioral economics, and I realized that associations needed that same discipline—linking member perception to price. I started with a few projects focused on member value research, and the impact was immediate. Boards could make confident decisions, and staff had data to tell the story behind the price.
That’s really how Pricing for Associations began—turning passion and mission into measurable, sustainable strategy.
Fox Tales: Is there any one major success that stands out?
Tatonetti: One that really stands out was with a large legal organization. They hadn’t raised dues in more than a decade and were hesitant to touch pricing because members were so loyal.
We conducted a pricing study that combined value segmentation and willingness-to-pay research. What we found was that members did see significant value—but the organization had never articulated it clearly. Once we tied pricing to outcomes and added tiers that reflected different levels of engagement, everything changed.
When they rolled out the new model, dues revenue increased by more than 20%, and member satisfaction actually went up. The organization finally felt confident talking about its value—and members appreciated that clarity.
That project proved what I’ve believed from day one: Pricing isn’t about charging more—it’s about telling your value story better.