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Creating Profitable Certification Programs

Certification is a buzzword in the assn world and few would argue that offering a certification isn’t a great idea. Over the past few decades, there has been a proliferation of certifications (in the thousands) develop across industries and professions with nonprofits leading the way. But many nonprofits do not create a business and marketing plan that realistically outlines the long-term investment needed to develop and sustain a profitable program.

Assns occupy a unique place in credentialing. They represent an industry or profession; have a captive audience in their membership and related stakeholders; and collectively possess the knowledge, skills, expertise and intellectual property upon which to build a certification. These key attributes create a unique value proposition for nonprofits offering certifications, but turning that value into income takes careful planning and solid execution.

Revenue-Generating Strategies

1. Treat your certification program like any other product or service your assn offers. Before launching a credential, conduct a comprehensive market analysis to determine the size of your potential market (go beyond membership); interest in earning the credential; perceived value and benefit of the credential; profile of the prospective market (education, employment setting, job title); features and characteristics of the prospective certificant (adult learners, independent practitioners, career builders); key stakeholders impacted by the credential (employers, regulatory bodies, affiliated groups); proposed fees; and number of certificants expected in the first two to three years. Involving a representative sample of your certificant population in the market analysis will also create buy-in and start the buzz around the certification.

2. Calculate your ROI and expect to sustain the program for a few years. Solid market research will enable you to determine when the certification program should break even and then become profitable. Set the initial certification and recertification fees at a level that creates buy-in, but also enables the assn to achieve profitability on schedule. Certification programs can be an enormous revenue generator if they are correctly supported by both the leadership and staff of the organization.

3. Share start-up costs. Identify sponsors or partners to develop the program. New programs easily cost $100,000 or more to initiate, depending on the complexity of the credential. This strategy will get you in the habit of seeking out companies beyond your existing membership base.

4. Build in value and tangible benefits. Identify the purpose of the credential and develop a program that supports that purpose. For example, if the market analysis indicates that members view the credential as a means for career advancement, involve employers in the process to give incentive to employees to become certified. Use the assn’s captive membership, stakeholder groups and prospective certificant pool to gather data that is useful to certificants, such as salaries pre- and post-certification, advancement and new opportunities in the workplace, and greater confidence on the job. Become known as the “go-to” organization for relevant information about the profession or industry. Go beyond your membership. Note: While the assn can generate many products and services, be certain not to restrict access to or link the credential or its products to membership. Antitrust litigation is a cost you can avoid with the right structure and advice.

5. Be customer focused. Make the program easy to access and reduce administrative costs by providing incentives for registering online and downloading applications and handbooks. Charge a fee for hard copies. Develop products to support the certification program, such as study guides, online practice exams and learning tutorials. Candidates will benefit from these resources while you generate revenue for your bottom line.

6. Outsource administrative functions. These take the time of people and operations so outsource application processing; notices to test and recertify; online registrations; tracking CEUs; electronic certificant directory; and database maintenance of current and prospective certificants. Put your resources into quality program development and marketing the credential.

7. Build on your existing programs or products. Launch the certification at a special event or meeting; conduct study groups at an event; identify existing programs and resources that tie into the credential, such as publications or education offerings.

8. Work with experts in the industry. Don’t spend time reinventing the wheel. Advisors specialize in starting certification programs, from understanding the risks and liabilities, to developing procedures and best practices. Good advice will save your reputation and help you avoid the typical pitfalls.

Categorized in: Industry News