How Much Does an AMC Cost?

Choosing to work with an accredited association management company like Association Acumen should be viewed as a long-term commitment and investment into the future success of your organization.

AMCs come in various shapes, sizes and styles. While cost is a determining factor, the lowest cost is not always in the best interest of your organization. Look for and select the best fit with a focus on what is most important to your organization, your pain points and characteristics that best compliment your leaders.

A contract between an association and its management company represents a substantial commitment of time, energy and money on both sides. When evaluating AMC proposals and estimates, ask yourself these questions:

1. Does the company appear stable?
2. Will it be able to meet its commitments?
3. Does it have the staff and financial resources to weather a setback like an economic downturn or loss of a major client?
4. How established is the AMC? The company’s age may be one indicator of stability, but certainly not the only one. Some newly formed companies are well planned, highly stable and forward-thinking. A new AMC should not be eliminated but carefully investigated to ensure it is well positioned to weather the challenges common in the first years of any new business.
5. Is the company able to serve not just current, but future needs? The company chosen should demonstrate the ability to grow with your organization, take on additional responsibilities, handle more members, another meeting or a new project.
6. Is association management the core service of the company you’re considering, or is association management and AMC services just a small sector of the multiple service lines offered by the company?

Other Considerations:

• Client Mix: Is the company familiar with the specifics of running an organization like yours? Can it absorb your organization and continue to handle its other client needs or does it intend to add staff and resources?
• Size: Will your organization be important to the management company or will it be a minor client among much larger organizations? While a large AMC may have more extensive resources than smaller ones, how will they allocate those resources to a smaller client?
• Equipment available
• Leader and staff capacity and experience
• Additional fees and variable costs

AMC Fees
Your AMC fees will be based on projections of:

• Staff Time
• Office Space
• Technology
• Professional Education
• Medical and Wellness Benefits

How are Fees Determined?
Fees are typically based on your scope of services, with projections based on the number of hours each staff member spends on association functions. The base fee is determined by unique hourly rates per staff member/position (including benefits) or a blend of flat fee + hourly rate (including benefits).

Items Typically Not Included in Fees:

• Variable Costs
• Graphic and Web Design
• Web Programming
• IT Services
• Photocopying
• Email and Postage
• Technology Fees

When reviewing proposals, watch out for AMCs that promise much for little money. While the total cost of an AMC should always be taken into consideration, doing your due diligence in terms of phone interviews, in-person presentations and site visits will give you the best insight when making this important decision.

Contact Association Acumen for a comprehensive set of informative AMC selection checklists.