How much does association management software (AMS) really cost?

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 the true cost of an AMS.

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, Senior Director 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 paint a true picture of 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?

Keep in mind there is no correct answer to these questions, but the answer can help you inform whether you should bring in a vendor selection consultant to help you navigate this process. You should also determine if you’ll use an RFP.

  • Defining requirements
    As you research AMS platforms, you’ll need 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.Do your 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 cost of implementing your AMS is impacted by the technology requirements you define. 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 what ongoing costs you have 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 have a direct impact on 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.

“Thinking about all these factors in a software space defines how much money you’re paying up front, your one-time fees, your annual licensing fees, and any additional maintenance fees that exist with your own staff our outside consultants to help facilitate this process,” said Philippe Mesritz, Nimble AMS General Manager.

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 perform multiple rounds of testing to catch any issues early on.
  • Reduce the cost of customizations
    To lower the cost of customizing your AMS to best meet your association’s needs, clearly determine your needs to avoid scope creep. Begin with only essential customizations and add more overtime. Finally, maximize what can be achieved with your standard AMS configurations before considering any 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 perform a process evaluation prior to your implementation to reduce your complex requirements. Finally, you might consider rolling out your AMS in phases starting with core functionalities and adding complexity in time.

“Cleaning up your data is a crucial factor in saving your organization money in the long run,” said Mesritz. “A few years ago, I worked with a company that was transitioning its data and it still had records from over 20 years ago. When I asked ‘why,’ they said, ‘because, we’ve always had it there.’ However, no one actively used the data, so the organization cleaned up two-thirds of their records, making the system faster and streamlining operations.”

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, you might consider keeping some of your budget in reserve. Reserving your budget can also enhance your AMS over time, help offer refresher training, new team member onboarding, and continued support to maximize your AMS.
  • Be open to changes
    As you implement your AMS, it’s likely that some of your processes will 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 out 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, it’s about 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 greatly 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.

Learn more about AMS prices for your organization

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