Kimmel: DMA Returns To Profitability, Offers More Member Value

Put aside the slow economic climate, the travails of the U.S. Postal System and even a potential proxy fight from a board member. The Direct Marketing Association is growing and offering more value to its members, CEO Larry Kimmel tells Chief Marketer.

The biggest change for the organization may be a return to operating profitability. Late last year, the DMA reported a $5.5 million deficit for its fiscal 2009 year. While Kimmel does not offer specific numbers, he said the DMA’s operating basis was “positive in terms of operating income.”

Hand in hand with a return to operating profitability, Kimmel reports a 53% rise in net assets from fiscal 2009’s $3.3 million.

Kimmel adds that total membership levels have grown as well, with some of the increases coming from digital companies, financial sector firms and pharmaceutical marketers. In contrast, “there aren’t as many old-time catalogers as there used to be,” Kimmel says.

Revenue growth from the DMA’s education activities has been “fabulous”, according to Kimmel, and conferences and events and council activities did well last year. But at least one of those revenue sources may falter the next time the DMA reports results: Kimmel’s initiatives during the past year include opening a considerable amount of the organization’s library of conference presentations and training modules to members as part of their base membership fees.

It’s possible that education revenue will dip as a result of opening up the archives to members, Kimmel admits. But, he adds, “Our belief is that if we continue to provide value, more companies will want to be members.” The organization’s current financial projections call for education revenue to be lower, and member growth to be greater.

In addition to revenue growth, the DMA has also trimmed expenses. Its staff levels have dropped, and it has sublet unused space in both its Washington, DC and New York offices. It also made some technology investments, such as changes to its telephone and T1 lines, which resulted in cost savings, Kimmel says.

There have been a few key personnel additions. The DMA recently opened a Silicon Valley outpost –