Advertising Contract Forms for Websites - PowerPoint

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					Prepared by Angela Cain, CEO & William Fulton, CFO
There are four primary reasons a dues
increase is needed:
   Increase in cost of doing business

   Increase in member benefits and services

   Decrease in dues revenue

   Decrease in non-dues revenue
  Since 2002 the purchasing
power of the dues we collect has
declined by 20.4%, yet programs
    for members have grown
          considerably.
        According to Consumer Price
           Index/Purchase Power
         calculations*, annual state
      association dues that were set at
        $125 in 2002 have the same
       purchase power as $150.51 in
                    2008.
                              Source: www.measuringworth.com




*The cost in a particular year of a bundle of goods and services purchased by a typical
consumer compared to the cost of that bundle of goods and services in a base period.
 How Much Things Cost
 Good or Service*                           2002         2008      % Increase
 Average Cost of New House            $    136,150.00 $ 206,200.00   51.5%
 Average Income Per Year              $     42,350.00 $ 51,765.00    22.2%
 Average Monthly Rent                 $        715.00 $     850.00   18.9%
 Gallon of Gas                        $          1.48 $       3.29 122.3%
 US Postage Stamp                     $          0.34 $       0.42   23.5%
 Loaf of Bread                        $          1.82 $       3.19   75.3%
 Dozen Eggs                           $          0.90 $       2.59 187.8%
 Minimum Wage                         $          5.15 $       6.55   27.2%
 Case of Copy Paper                   $         24.99 $      33.95   35.9%
 IRS Mileage Reimbursement
 Rate/Mile                             $        34.50 $      54.50   58.0%
 MAR Annual Dues                       $       125.00 $     125.00   0.0%

*National statistics available for 2008, not 2009
   In the past 8 years, MAR has undertaken
  several new initiatives that impact how the
association serves its members. These include
 a continuing series of printed and electronic
  publications, webinars, websites, standard
  forms and contract software, and improved
    member outreach and advocacy efforts
 devoted to improving members’ knowledge,
         skills, and business practices.
  We are delivering great value for
each dues dollar. Since the last dues
   increase, we have increased
member programming by more than
   50% while reducing staff size
almost 36% and reducing operating
        expense by 4.5 %.
We are actually spending LESS
 than we did 8 years ago and
  giving our members MORE.

 In 2009, members get MORE
   for dues dollars than ever
            before…
Member Benefits
                          2002                                                               2009
Quarterly newsletter                                  Quarterly magazine
Standard Forms & Contracts in a pdf format            Standard Forms & Contracts in a pdf format
MAR Convention & EXPO cost members $249               MAR Convention & EXPO cost members $159
Legal Hotline                                         Legal Hotline
Technology Hotline (outsourced)                       Technology Hotline (in-house)
Four Affinity Partners                                Ten Affinity Partners
One Association Website (www.msrealtors.org)          Four Association Websites: www.msrealtors.org, www.realtorinstitute.org,
                                                      http://411.msrealtors.org, http://hurricaneguide.msrealtors.org
Political Advocacy                                    Political Advocacy
Mississippi REALTOR® Institute                        Mississippi REALTOR® Institute
REALTOR® Day at the Capitol                            REALTOR® Day at the Capitol
Flyers and Quarterly Members Mailings on timely topics Monthly MARDigest e-mail
                                                       Weekly BrokerBuzz e-mail
                                                       Weekly Rookie Report e-mail
                                                       Opportunity Knocks newsletter
                                                       Real Estate 411: The Mississippi Consumer Real Estate Guide
                                                      Housing Opportunity Resource Guide
                                                      Monthly Virtual Sales Meetings
                                                      Lunch-n-Learn Webinars
                                                      Access to Mississippi REALTOR License Plate
                                                      Online chat helpline - tech, education, general
                                                      Zipforms software - desktop or web versions (every member gets a
                                                      first-time download for FREE - renewals are $59 annaully, a savings of $50 off the
                                                      orginal price)
 Did you know…
     MAR dues = $125/member

     MAR benefits & services*= $200.74/member




*excluding Mississippi REALTOR® Institute
MAR Membership: Cost of Dues vs. Cost of
Services
                                           Cost Per
Benefits & Services                        Member
Political Advocacy/Business Protection   $50.00
Legal Hotline                             $10.78
ZipForms/Standard Forms & Contracts       $11.95
Electronic Communications                 $25.39
Magazine/Real Estate 4-1-1 Guide          $26.52
Professional Development                  $26.40
Leadership Development                    $49.70
Total Benefits per Member                $200.74
                                         -$125.00 Dues Payment
                                         $75.74       Added Value
Past, Present & Future

                            As of 12/31/2002                 2009 Budget              2010 Projection*
 Operations                     (Audited)                    (Unaudited)                (Unaudited)
 Income                      $ 1,661,030.00 $ 1,430,519.00 $ 1,294,760.00
 Expenses                    $ 1,588,382.00 $ 1,518,840.00 $ 1,442,898.00
 Surplus/(Deficit) $                   72,648.00 $                (88,321.00) $ (148,138.00)



 *Assumes 9% decrease in membership , 7% decrease in education and 15% decrease in other income from 2009
 budgeted income, as well as, a 5% decrease in expenses.
Operating Income/Expense History
2500000




2000000




1500000




1000000




 500000




      0



             Operating income   Operating expenses
Then and Now

                   As of
                12/31/2002
                  Audited      2009 Budget Difference
Dues income     $646,474.00    $790,875.00 $144,401.00
REALTOR®
Institute Income $824,174.00   $439,844.00 -$384,330.00
Other Income     $190,382.00   $199,800.00   $9,418.00
TOTAL          $1,661,030.00 $1,430,519.00 -$230,511.00
Income History
1200000



1000000



 800000



 600000



 400000



 200000



      0




             Dues   Education   Other
 In the past, non-dues revenues, primarily
 from our real estate school, have made it
     possible to forego a dues increase.
   However, we simply can't, in the future,
expect to raise sufficient non-dues revenue
 to fund the level of member benefits and
 services you’ve come to expect from this
              great association.
 And we can’t solve our budget
shortfalls forever by dipping into
             reserves.
Reserves History
          1998       ($90,000.00)
          1999      ($120,000.00)          2004   $115,000.00
          2000      ($200,000.00)          2005   $183,310.55
          2001      ($150,000.00)          2006   $175,000.00
          2003       ($67,000.00)          2007   $125,000.00
          Total                     Total funds
   withdrawals      ($627,000.00)    deposited    $598,310.55
  MAR used reserve funds 1998-      Funds added to reserves
  2003 for operations and capital         2004-2007
           expenditures

• An association of this size and scope should have a
  minimum of 6 months of operating reserves ($715,000.00).
• Reserves fund balance as of 4/17/2009 was $659,445.31.
What is MAR doing to cut
       expenses?
Expense cuts made over past 4 years
   Staff members decreased from 14 in 2002 to 9 in 2009
   Recently laid off 10-year employee of association
   No staff raises for 2009
   Renegotiated multiple vendor contracts
   Designated MAR building a smoke-free property and saved
    $2,000/year in employee health insurance
   Changed paper weight/printing/marketing approaches and
    saved $41,500 annually
   Changed member outreach strategy; utilizing more
    webinars/technology-based outreach – saved $6,000 annually
   Reduced staff and leadership travel expenses – saved $3,000
What are other states doing?
                                                                                       Apprx.
                          Budgeted         Actual    Deficit            % of last   Membership
           Membership   Membership in   Membership Budget for Dues        dues       as of April   Apprx. Dues Revenue
State        in 2008        2009          in 2009     2009   Increase   increase        2009             for 2010
Alabama       10%       14%               11%         Yes     2008 41.1%               12,600 $2,142,000.00
            decrease decrease           decrease
Georgia       10%       20%               25%          No     2009 25.9%              30,500       $2,226,500.00
            decrease decrease           decrease
Louisiana      8%       13%               14%          No     2009 50.0%              11,250       $1,687,500.00
            decrease decrease           decrease
Florida       11%       10%               17 %        Yes     2010 15.0%             114,000 $13,110,000.00
            decrease decrease           decrease
Tennessee      6%    7% decrease          16%         Yes     2010 28.6%               23,000 $2,070,000.00
            decrease                    decrease
Mississippi    2%       12%               11%         Yes     2002 47.1%                6,200       $775,000.00
            decrease decrease           decrease
What about other small states?
                                Projected    Actual                  2010        % of
                 Membership in membership Membership              Membership Revenue Last Dues Membership
State               2008         in 2009    in 2009  Dues Amounts Projections from Dues Increase  Size
Maine              9%       9%        9%    $ 182.00                NA        90%       No       4130
                 decrease decrease decrease
Rhode              10%      15%      15% $ 148.50   10%                       35%       No       4040
Island*          decrease decrease decrease       decrease

New                8.5%     5%       9.8% $ 178.00   10%                      70%      2009      5220
Hampshire        decrease decrease decrease        decrease
Montana**           Flat       10%      11% $ 318.00   9%                     90%      2009      4086
                             decrease decrease       decrease
New Mexico         9%       8%       17% $ 215.00   9%                        85%      2008      6949
                 decrease decrease decrease       decrease
Mississippi        2%       12%      11% $ 125.00   9%                        55%      2002      5768
                 decrease decrease decrease       decrease
*Shares 50% of expenses with Statewide MLS, this keeps dues lower. 65% of revenue from continuing
education (24 hours required every 2 years)
**Annual 3% cost of living dues increase each year
Why increase dues now when
 our members are already
         struggling?
  Now, more than ever, our
     members need help.
  And MAR should remain a
    viable resource in the
challenging months and years
           to come.
Our financial challenges are
long-term. To dismantle our
reserves and/or cut back on
key programs, benefits, and
  services now would be a
shortsighted and short-term
          solution.
2010 Budget Projections
   9% decrease in membership (budgeted
    12% decrease in 2009)
   7% decrease in education revenue
   15% decrease in other revenue
    (advertising, sponsorships, exhibits,
    etc.)
   5% decrease in expenses
Dues History
   Previous State Association Dues Increase
    1998:
     $60 to $85 – 41.7% increase


   Last state Association Dues Increase
    2002:
     $85 to $125 – 47.1% increase
Proposed 2010 dues increase
scenarios:
   Long-term solution: $3/month or
    $36/annual increase = 28.8% increase

   Medium-term solution: $2.50/month or
    $30/annual increase = 24% increase

   Short-term solution: $2.08/month or
    $25/annual increase = 20% increase
2010 Dues Increase Scenarios


Operating Revenue vs.                          $2.08/month         $2.50/month         $3.00/month
Expenses                                      increase or $25     increase or $30     increase or $36
                              No increase   increase annually   increase annually   increase annually

Dues revenue              $    715,875.00   $   857,550.00      $   885,885.00 $          919,887.00
Education revenue         $    409,055.00   $   409,055.00      $   409,055.00      $    409,055.00
Other operating income    $   169,830.00 $ 169,830.00 $ 169,830.00 $                      169,830.00
Total Operating Revenue   $ 1,294,760.00 $ 1,436,435.00 $ 1,464,770.00 $                1,498,772.00



Operating Expenses        $ 1,442,898.00 $ 1,442,898.00 $ 1,442,898.00              $   1,442,898.00
Projected Operating       $ (148,138.00) $ (6,463.00) $ 21,872.00 $                      55,874.00
Surplus/(Deficit)
“Living in the past has one thing
   in its favor – it’s cheaper.”
  “The bitterness of poor quality
lingers long after the sweetness
  of a cheap price is forgotten.”
“In any moment of decision, the
    best thing you can do is the
 right thing. The next best thing
is the wrong thing and the worst
   thing you can do is nothing.”
A $3 a month investment in your state
association is a $3 a month investment in
your future business success. Vote YES.

				
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