franklin_m

I would say the answer then nothing to be fairly typical. Same for the experience of folks offering ideas but getting no meaningful consideration. HQ and EC say they want new ideas, but I don't think they really do. Or at least they only want the "new" ideas that align with the way they've always done things. But they better wake up soon ... go look at the CFO's comments from the July meeting. With all the talk of a looming recession, a discretionary expense is the first to go. And it's not like they're raking in new members. They can't even stem the tide.

But worse yet, there's some pretty big issues they've got to address. Namely, membership revenue has been declining for over a decade, yet staff costs have remained constant. Worse yet, executive compensation as a percentage of staff costs has actually increased. In short, the "execs" are eating up more and more of the people $$ pie. That's unsustainable.

Appowner

Is it possible the gang in Muncie actually think they are equal to the marketing, management and lobbying gurus working for those corporations desiring the lower 500 feet of the NAS?

Back in the 90's I did apply for the ED position. But I didn't know the secret handshake and password. So I was destined to a much larger income in the DC area.

fliers1

Franklin M, Horizon RC Fest 2018 HorizonHobby
After watching this video, it gave me an idea on what could possibly be done without the help of AMA.
My idea is to set up something of a mini Horizon RC Fest, eventually all over the US.
With your expertise as a consultant, I firmly believe that something could be done, to attract new blood to our hobby, eventually on a large scale.
This would, I guess be a SIG of sorts. If you would like to talk about this via back channel, I could offer much more information on this plan.

Hydro Junkie

My only issue with that video is that it had very little fixed wing aircraft highlighted on it. The first two thirds showed cars and buggies of various kinds doing various things. Aircraft counted for less than half a minute of the total run time. The flying also was primarily by expert flyers that were just showing off, even though they did show a beginners area.

Appowner

However, as the saying goes, actions speak louder than words. And my experience with the AMA has been they are long on talk and short on action. I know others won't see it that way. But that's because they accept the AMA as it is rather than work for it to be what it should be.

fliers1

Unfortunately, just as long as those who are on the payroll and the rest keep their positions, it's a maintain the status quo situation. They ask for help, but don't seem to really want any advice. " Get out of here kid, you're bothering me"
WC Fields.lol

franklin_m

Membership revenue has been in near constant decline for a decade and a half. While expenses have declined, they still exceed membership revenue (major source of AMA funds) by $1 - $2 million EVERY YEAR. Despite declining membership revenue, staff costs have remained flat. Ad revenue for the magazine has continued a similar long decline. Even measures of "true believers", like charter club revenue, has declined at similar rates. The bottom line is that it appears that whatever "product" the AMA is selling is finding fewer and fewer people willing to buy it.

So now the organization has handed the helm to a "Marketing and Communications" guy. We'll see if improved "marketing" will stem the tide, but I suspct it will not. And it won't because the AMA leadership just cannot fathom that most people in their targent demographic just do not eat live and breathe model aviation like they do. AMA has to figure out to create more REAL value for these members, again, not premised on what the EC thinks is value.

Appowner

AMA leadership individually do not know or are unwilling to admit when they are in over their heads. They need professionals in some of these positions. Until they do so the trends will continue.

franklin_m

These two graphs tell the story.
Declining revenue and consistently spending more than they take in. Once I get their 2017 IRS 990, I'll update.

Appowner

Any idea what the trends were prior to 2002? If memory serves I want to say revenue was around 10 mil as early as the 80's. I seem to recall in the early 90's the AMA was boasting 200,000 members and 2,000 clubs. I know because I called them on it back then.

The more numbers from past years we can gather the better the picture will be. And I believe this trend will extend back a lot further than people expect.

fliers1

Although AMA isn't interested in entertaining any ideas from us. Does anyone have any proactive, productive and readily available ideas to help stop our hobby's downward spiral?
If anyone here does, I know it might be just wishful thinking, but maybe, just maybe, the AMA big shots might like what we have to offer. Yeah right. Who knows? Maybe we can make them believe that it was their idea. lol

franklin_m

I have inflation adjusted membership revenue going back to 1998, but not expenses, total revenue, staff costs, senior staff costs etc. - things I felt necessary to give a full and fair analysis. Big picture, AMA's total revenue, in constant inflation adjusted dollars, peaked in 2004. Since then it's seen almost a 25% decrease.

Here's the chart of Membership Revenue trend. Data comes from copies of AMA's IRS990 filings, public documents. They're inflation adjusted using US Bureau of Labor Statistics inflation calculator. For example, since AMA's fiscal year runs January to December, I used whatever they listed on their filing as December of that year, and then inflation adjusted it to December 2017. Of note, AMA made dues increases in 2003 and 2015. It would appear that the only way they've successfully increased membership revenue is to raise dues. That tells me they're losing members.

Appowner

You're not going to stop the spiral until you fix Muncie.
There are a few key positions, ED being one, which should be occupied by professionals with proven track records and NOT hobbyists. I'm not saying a hobbyist can't do the job. But you're hedging your bets going with someone who does this sort of thing for a living vs someone who cloak roomed their way into it.

Technology should be leveraged to maximize benefit and minimize expenses. This would mean a reduction in face to face EC meetings. It should also mean an all electronic magazine among other things. Last but not lease, it means a competent web master.

A serious study/evaluation of the use vs cost of all the Muncie facility. And divide the use between locals and out of towners.

Toss the drone business to the curb and focus on their core.

Actually, on second thought. I think the first thing that needs to happen is to issue the membership some stones. So they can put the necessary pressure on Muncie to do the right things.

franklin_m

Here's another chart that's pretty telling. They raised dues in 2003 and again in 2015. Each time, within two years staff costs grew considerably. By 2005, the staff costs went up by 19% as compared to the year before the dues increase (2002). In 2016, the staff costs increased by 29% as compared to the year before the dues increase (2014).

So it would appear that upon raising dues, one thing the AMA does is increase staff. Yet each time the dues increases are sold to members as increasing costs the next time there's a dues increase. Well, duh, when you hire more people ... of course your costs go up.

Appowner

Yeah! That 28% (or 3/4 million) is the thing that gets me. In NY or DC, maybe! But in Muncie? I think an IRS investigation is in order.

Appowner

Another thing that gets me is, I would think all else being equal, staff costs over the years should stay fairly level increasing slightly each year for inflation. But this thing is erratic as heck. Why?

Be interesting to see a comprehensive chart showing the various categories of "staff expense" to see exactly where these funds are going and what is causing the wild swings over the years?

fliers1

Just got the January 2019 MA issue. On page 118, Chief Financial Officer Keith Session's column titled Bringing In New Members. Interesting concept there. Solution to the decline, bring in new members. Business 101

franklin_m

So in the last few years, they've gone from bring in new members, to alternate sources of revenue, to the foundation, to bringing in new members.

BTW, 2016 IRS 990 shows that in 2016 the AMA gave $300K to the foundation. Only have the foundation give approx $150K of it back. Interesting. Had to ask myself why would they do that? Then it dawned on me. It takes majority vote of EC to spend money on something. But if the money comes from the foundation, the foundation gets to tell AMA how it must be spent. Totally unaccountable to members....

Appowner

So in short, a form of money laundering. Curiouser and Curiouser.

franklin_m

Here's another interesting trend.
Staff salaries and other compensation have been rising continuously, and it now accounts for 1/3 ... ONE THIRD ... of all AMA expenses! And note the big jump even after the 2015 dues increase!

fliers1

I finally realize why AMA headquarters have ignored any emails from us.
At least the late Dave Mathewson would reply my emails, but I think he ran into the same brick wall I ran into. He said he contacted industry members explaining how I could help them, but the EC didn't want to hear anything I had to say.

Appowner

Would be interesting to see their justification for that increase.

Appowner

Simple! We ask questions. We rock the boat. We THINK beyond what they want the average member to think!

I was asked once by an NCOIC I had why I kept rocking the boat by asking questions all the time?
My reply was that if the boat can't stand a little rocking. Then maybe it's time for a new boat.

I think my record would speak for itself.

franklin_m

Here's another ... this chart represents the losses incurred by Model Aviation and Park Pilot magazines, strictly "revenue" minus "expenses" as listed on AMA's own IRS 990s. I.e. what they report to the federal goverment.

Keep in mind, when you add up all that red, it respresents TWENTY-NINE MILLION dollars in losses... I have to think that money would have been better "spent" elsewhere....

astrohog

My Feedback: (1)

Besides the AMA EC running rampant with their own agendas, I believe this is the second major thing in the way of change. I believe the membership has the ABILITY to have the stones to make necessary changes, we are just too segmented and disengaged to make much of a difference. Unfortunately, only about 6% of the membership participate in elections. This, coupled with the fact that the Good Ole Boys make it extremely difficult to access the data that should be very transparent, makes for a challenging environment for change.

I would venture that if every AMA club would review the figures that Franklin has been able to obtain in their monthly club meetings, that we would see a dramatic rise in voter participation AND would see the votes swing away from the GOB Network.

Regards,

Astro