Industry associations lose ground

Traditionally, individuals join business associations for networking. But a leading expert says the expanding range of social media has put these associations at risk of being redundant.

Online marketer Toby Marshall, chief executive of Lead Creation , which specialises in professional services for small to medium enterprises, predicts the future of 200-plus industry associations in Australia may be in doubt. He says social media is a game changer.

“Social media groups are threatening professional associations as they offer nearly all the services of the associations and do it for free,” Marshall says. “Their full functionality is not being used yet but this is changing. We are working with five different professional associations and this will result in many members choosing not to renew their professional association memberships.”

He says the world has changed irrevocably. “We can now connect with many more people and hugely leverage every connection we make.”

Traditionally associations were set up to connect people professionally, to mix socially, to share knowledge, to lobby governments and sometimes to provide accreditation. All of this, apart from accreditation, can be provided for no charge on social media such as LinkedIn.

“A lot of industries have four or five competing bodies, which arose largely because they were state based and this is no longer relevant,” Marshall says. “To compete with the online groups, associations must embrace and integrate social media into their offerings, otherwise they risk obliteration.”

Sales strategist Daniel Jeffares used to be a member of several associations but now belongs to none. He admits that being a member of an association can be important for endorsing or adding credibility to your qualifications but “what I have found with the social media groups is that they offer a wider range of information and have more varied commentary and engagement. If you want a wide range of sources, then social media groups offer more. I can get the services and contacts I need from groups on LinkedIn and don’t need to pay $250 every year.”

In November 2010, Marshall started his own online marketing “association”, Get Booked Out. It is hosted on LinkedIn and he says it provides all the services of a traditional association and more – with no membership fee.

BRW

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