Diminishing Returns? Chamber of Commerce membership plunges 53%
There’s no doubt that the US Chamber of Commerce, an affiliation of thousands of local chamber groups, wields a powerful influence over legislative agendas, but they are losing sway as an influencer of small business owners. Among major association types, local chambers are at the bottom in terms of membership rates according to a recent Warrillow study, with only half the engagement of industry associations. They even lag social networking sites, although it is still unclear what role these online communities currently play in business activities.



Engagement also seems to be declining over time. Membership rates of growth-oriented (greater than 10% annual revenue growth) small business owners halved from 2005 to 2008, based on Warrillow data.



While its 3 million members look appealing as an aggregator, in reality the Chamber is as fragmented by geography as industry associations are fragmented by profession. The economy of scale here is a myth. More importantly, the chamber is losing its appeal with small business owners. Andrew Patricio, President of BizLaunch, advises hundreds of US and International entrepreneurs each year on improving their business. A serial entrepreneur himself, Andrew has heard the same story from business owners over and over again on chambers of commerce:

“[Chambers] are dying because they are useless, old and do nothing for small and medium businesses. Their board of directors doesn’t understand business owners and they are more focused on membership rates than helping their members succeed.”

If you’re looking to build out association based partnerships, take a pass on the Chamber of Commerce. Trade the large but disengaged base of the US Chamber for more narrow associations that are true influencers of your target market. Sprint’s partnership with the American Bar Association attaches their brand to a well respected and well networked organization, despite having a member base one-eighth the size of the Chamber of Commerce.



In the small business market, association marketing is about quality, not quantity. As you evaluate partnership opportunities, focus on signs of highly engaged members and trusted advisors, not just membership size. Members can find more information on incorporating associations into their marketing activities in the Warrillow report, Associations as Small Business Aggregators, available through your relationship manager or online at www.warrillow.com.

Warrillow is Hiring!
With membership in the Warrillow Subscriber Network growing rapidly, we have a current opening for Director of Membership. For more information or to submit your resume, please contact Elizabeth Deh at elizabeth.deh@warrillow.com.