Is your organization in the process of researching new association management software (AMS)? As you gather research and compile information for your AMS selection, you might have questions about the true cost of an AMS.
We’re here to help! Continue reading to learn more about the many factors involved in determining the actual cost of an AMS.
Wondering about the true cost of an AMS? Watch our on-demand webinar to answer all your questions on the total investment of your next AMS! Watch now.
4 AMS factors to consider during the selection process
Asking how much an AMS costs is no simple question and offers no simple answer. As you research new AMS platforms, consider these four factors to inform an accurate price for your next AMS:
1. The primary investment components of AMS
“Asking how much an AMS costs is like asking how much a house costs,” said Tirrah Switzer, VP of Product Marketing. “There are a ton of factors that go into pricing a home. For example, the location, number of bedrooms, lot size, if it’s hurricane grade, etc. The same can be said for how the primary investment components influence how you price an AMS.”
The primary investment components can help your association accurately predict how much your next AMS will cost. Here are the primary investment components you’ll want to consider:
AMS selection process
As your association begins its AMS selection process, ask yourself these questions:
- What is my organization’s relationship with risk?
- What is my organization’s expertise in the AMS industry and its offerings?
- What is my organization’s staff capacity?
Remember there is no correct answer to these questions, but the answer can help you determine whether you should bring in a vendor selection consultant to help you navigate this process. You should also decide whether you’ll use an RFP.
“Remember, as you choose an AMS, you’re selecting a product and a company, so it’s vital to consider your organization’s alignment with the vendor. As you’re considering your next AMS, you’ll want to go 10, 15, or 20 years into the future with your technology vendor. Do your research about the company before attending a demo and select a well-rounded team from multiple departments to help you select your next platform,” said Rob Miller, SVP of Associations Strategy.
Defining requirements
As you research AMS platforms, you’ll want to consider your technological requirements. Your requirements will serve as a roadmap to your implementation price tag.
SaaS pricing
Some AMS vendors use a SaaS pricing model, while others do not. With SaaS pricing, you’ll pay a set amount for a certain number of users and functionality. The highest tier will often include the best features and functionality.
Research on each vendor’s pricing model because each one provides different core offerings. For example, one vendor might have a much lower base price, but only offer basic functionality.
Implementation
The technology requirements you define impact the cost of implementing your AMS. The more requirements your organization has, the larger your scope grows. The bigger your scope, the more time it will take for your implementation team to define, validate, and deploy each feature.
Operating costs
You’ll want to consider your ongoing costs related to keeping your system running and well-maintained, like licensing, support, ongoing staff training, and more.
Total cost of ownership (TCO)
As you’re thinking about AMS prices, consider this: the investment you make on your AMS platform now will directly impact how much you spend in the future. Consider investing in an AMS that offers the following:
- Continuous upgrades: With routine and automatic product updates, your organization can avoid costly system upgrades.
- Intelligent solutions: Leverage AI and analytics to streamline your staff workload and save time and money.
- Expert community: Look for an AMS vendor that offers expert support services and a support community your organization can easily plug into.
“Want to keep your pricing in line? Try approaching your requirements gathering process by thinking about what you hope to achieve, rather than by how you plan on achieving it. As you consider your technology requirements, don’t forget about the future. Investing in growth now will keep you from paying more later,” said Switzer.
2. Biggest factors in AMS costs
Looking for tips to reduce the cost of your next AMS platform? Here’s how to get started:
- Reduce the cost of your data migration
As you transition to your next AMS, you can save costs by preparing your data for a successful migration. Begin by cleaning your data, defining which data you need to migrate, setting up processes for maintaining quality data post-migration, and performing multiple rounds of testing to catch any issues early on. - Reduce the cost of customizations
To lower the cost of customizing your AMS to meet your association’s needs best, clearly determine your needs to avoid scope creep. Begin with only essential customizations and add more over time. Finally, maximize what can be achieved with your standard AMS configurations before considering full customizations. - Reduce the cost of complexity
A great way to lower AMS costs is to leverage out-of-the-box configurations to help your organization meet its needs. You can also evaluate processes before implementing to reduce your complex requirements. Finally, consider rolling out your AMS in phases starting with core functionalities and adding complexity over time.
“When it’s time for your implementation, you can reduce costs by reducing unnecessary customizations. Instead, your organization can prioritize standard, or out-of-the-box AMS processes. Remember, having a complex system adds time, energy, and investment into your implementation, so choosing to reduce customizations can save you money,” said Switzer.
3. Best practices for negotiating AMS costs
To find the best AMS price for your organization, you’ll want to prepare your budget and get budget-confident early by following these helpful best practices:
- Hold back some of your budget
To prepare for unexpected costs, consider keeping some of your budget in reserve. Reserving your budget can also enhance your AMS, help offer refresher training, new team member onboarding, and continued support to maximize your AMS. - Be open to changes
As you implement your AMS, some of your processes will likely change. Be open to these changes to help optimize workflows in your system, save time, and reduce errors. - Work with your vendor
Work with your vendor to identify how your new AMS will boost your technology return on investment (ROI). Showing how your AMS will increase ROI will help boost buy-in with your key stakeholders and staff. It will also help to align your AMS investment with your broader strategic goals.
4. Making an informed AMS selection
Pricing the best AMS for your organization is more than a game of numbers. Rather than just thinking about a price tag, you need to remember that your AMS is an investment for the future of your association. Your AMS isn’t just about what you can achieve today but what you can achieve tomorrow.
You’ll also want to consider your staff’s attitude about the change management process and ultimately the new software you select. Both factors can significantly impact how long the AMS implementation process takes and how much money it costs.
So, how much does an AMS really cost? When you consider all the factors outlined in our blog, your association will have a much better sense of the true cost of an AMS.
