70 Smart revenue generators - an moneysavers - Innovation - Cover Story

University Business, Dec, 2003 by Katherine Grayson

43. Market to build card program partners. New marketing and technology companies such as Student Advantage and Blackboard's Bb One have sprung up to help schools build card program partners. After a Student Advantage marketing effort for University of Mississippi at Oxford, the program launched with 28 restaurants, stores, and other local merchants signed on. The marketer will continue to build partners and market the program for three years, with the school getting 10% on each sale transaction. It's a real moneymaker, say school administrators.

44. Tie the card to the credit union. At the University of South Florida, the school simply ties the Card Service office to its own credit union, to offer banking. The school gets $1 from the credit union for every account opened and linked to the card program; the credit union also pays the school card program a flat fee of $2,100 per month ($25,200 annually). But the bulk of the program's revenue comes from a 1% payment the credit union makes to the card office on the total value of the checking and savings accounts opened by students and staff. In one year, that can be another $45K for the school.

45. "Brand" a credit card. Claremont McKenna College (CA) offers a branded MasterCard to 8,300 alumni, via MBNA. The Duke University Alumni Association snags one-third of its annual revenue from its credit card, and the Brown University (RI) Alumni Association realizes $350,000 annually (70% of its non-salary operating budget) from its affinity programs that include a credit card and various insurance products. Affinity credit cards are often the biggest non-dues moneymaker for alumni associations.

46. Market the credit card. At Brown, focused marketing and direct-mail marketing brought a languishing program back to life. Now it's the alumni association's biggest moneymaker.

47. Sell insurance. Life insurance is the insurance most commonly offered through alumni associations, but auto and property are growing areas, as is short-term medical insurance. At Brown, 14% of a recent graduating class signed up for short-term medical insurance--"a level unheard of," say administrators there.

REVENUE FROM ALUMNI

48. Offer alumni programming--it can bring new revenue streams. At Denison University (OH), it's more than just alumni travel; the programs combine historical lectures with visits to actual Civil War sites, steamboat cruises, etc.

49. Encourage the alumni classroom experience. There are currently more than 260 Institutes for Learning in Retirement affiliated with IHEs in 43 states, DC, and Canada.

50. Provide alumni living. Retirement communities near college campuses are gaining in popularity. Some are directly affiliated with IHEs, some are not: There's Foxwood Village near Penn State; Henton at Elon, near Elon University (NC); Lasell Village near Lasell College (MA); and University Village, near the University of South Florida. Similar communities have sprung up at Amherst (MA), Iowa State, Mount Holyoke (MA), and Northwestern (IL). At Oberlin (OH) and Dartmouth, waiting lists are from two to five years. There are more communities at Indiana U, Duke, Notre Dame (IN), Stanford (CA), and U of Arizona, and at least 37 more schools were planning feasibility studies in 2003. Most communities require entrance fees of at least $100K, as well as monthly maintenance charges. Ka-ching!