Networking: The Advantages of Joining Industry Trade Associations

Trade associations are classically non-profit organizations formed by firms in the same industry to collect and circulate information, offer legal and technical advice, furnish industry-related training and marketing materials, and provide a forum for the people in the industry to network. To achieve these goals, many trade organizations organize annual meetings and trade shows. For instance, the Internet Society (ISOC) is a professional trade association with more than 80 organizations and 28,000 individual members. Members of the association arrange and meet in local chapters; they usually come together once a year for an annual conference to talk about issues related to the Internet and internet technologies. Another good example is The Game Manufacturers Association. This association, which services the tabletop game industry, supports an annual trade show, which is attended by more than 15,000 people every year. For many people, the biggest advantage of belonging to a trade association is the opportunity to network with industry peers. This is one reason busy CEOs and entrepreneurs are willing to donate their time to serve on the board of directors of their respective associations. Serving on the board or on an association committee gives them the opportunity to exchange ideas with their peers. Recognizing the benefits of networking, some associations have even created online forums. For instance, the American Booksellers Association (which restricts its membership to independent bookstores, thus eliminating the potential divergent interests of bookstore chains like Borders and Barnes & Noble) hosts a number of password-protected online forums, where its members can ask each other questions and  collectively brainstorm the best ways to compete against big-box competitors. Another example is the Craft & Hobby Association. Along with providing its members traditional trade association benefits, it offers business-building seminars, workshops, and social events for its members.

Before joining any trade association it important to critically note and understand the following thoroughly:

1. What is an industry “trade show?” How do entrepreneurs benefit by attending trade shows?

2. What are the risks associated with networking? For example, are their risks involved with sharing information with other trade association members about how your firm competes?

3. Does participating in a trade association allow an entrepreneur to establish strong-tie relationships, weak-tie relationships, or both? How can an entrepreneur deliberately try to establish more weak-tie relationships through trade association membership?

4. Spend some time looking at the Web site of the Craft & Hobby Association. Make a list of networking opportunities made available via membership in this organization.