Everyone talks about the power of AI, so I asked ChatGPT the following question: What percentage of procurement association revenue comes from solution providers?
Here is the answer I received:
The percentage of procurement association revenue that comes from solution providers (e.g., technology vendors, consulting firms, and service providers) can vary widely depending on the specific association. However, it’s estimated that 30% to 50% of the revenue for many procurement associations comes from solution providers. This revenue typically includes:
- Sponsorships: Solution providers sponsor events like conferences, webinars, and seminars.
- Exhibitor Fees: Many associations generate income from solution providers exhibiting their products and services at trade shows or industry events.
- Partnership Programs: Strategic partnerships with solution providers can include memberships, advertising, or research collaborations.
- Educational Content: Some associations collaborate with solution providers to create white papers, training programs, and certifications.
The rest of the revenue generally comes from member dues, event ticket sales, and educational offerings.
If you’re looking into specific associations or want deeper insights into this revenue model, I can help with more detailed information.
Asking The “HARD” Questions
The above answer raises another more profound, far-reaching question—if 30% to 50% of an association’s revenue is derived from solution providers, and 75% of those solution providers disappear by the end of 2025, what impact will this have on the association’s business model?
For example:
- Will the remaining solution providers gain greater leverage and, therefore, influence over association content creation?
- As a result, will the voices of practitioners, analysts, and consulting firms be further muted?
- How will this impact industry conferences and events, e.g., DPW Amsterdam?
- How will industry education and curriculums be affected?
Once again, we are not talking about a small amount of money here. If you were to lose 30% to 50% of your personal income, would it impact your actions? Remember the digital signature story I shared in my previous post – Walking The Procurement World Tightrope
If you were the head of an association or industry conference, how far would you go to preserve your cash flow?
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Procurement Insights
Why Procurement Associations Are At Risk In 2025
Posted on August 29, 2024
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Everyone talks about the power of AI, so I asked ChatGPT the following question: What percentage of procurement association revenue comes from solution providers?
Here is the answer I received:
The percentage of procurement association revenue that comes from solution providers (e.g., technology vendors, consulting firms, and service providers) can vary widely depending on the specific association. However, it’s estimated that 30% to 50% of the revenue for many procurement associations comes from solution providers. This revenue typically includes:
The rest of the revenue generally comes from member dues, event ticket sales, and educational offerings.
If you’re looking into specific associations or want deeper insights into this revenue model, I can help with more detailed information.
Asking The “HARD” Questions
The above answer raises another more profound, far-reaching question—if 30% to 50% of an association’s revenue is derived from solution providers, and 75% of those solution providers disappear by the end of 2025, what impact will this have on the association’s business model?
For example:
Once again, we are not talking about a small amount of money here. If you were to lose 30% to 50% of your personal income, would it impact your actions? Remember the digital signature story I shared in my previous post – Walking The Procurement World Tightrope
If you were the head of an association or industry conference, how far would you go to preserve your cash flow?
30
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