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Is your local chamber of commerce obsolete?

Upon entering the San Jose, California Chamber of Commerce, one wonders what kind of local businesses are members. After all, San Jose is Central Silicon Valley and home to many of the best-known companies in the world.

When you look at the list of members, what is striking is the absence of the big hitters. What is also striking is that of the tens of thousands of businesses in San José, only a very small percentage bother to join the San José Chamber of Commerce.

In the old days, local C’s were places to advertise and promote your local business. Somehow, being a member and paying your annual fee of $ 150 would place you among the local elite and increase the credibility of your company.

But as in the San José Chamber of Commerce, most local businesses are not as well members as the “bigger and more important” local businesses.

But it is not just San José. Go to any local C of C and you will most likely find the same. Why?

An analysis of the big picture shows that the concept of “local” has changed. Technology and specifically search technology has opened up the world to the local consumer with more options than just local ones.

In the old days, you did business with those you knew or knew locally; Now the local consumer can do business with any company they find by searching the Internet.

The “Buy Local” programs have simply become obsolete as the concept of local has lost its meaning.

The inference was once that local consumers were looking for businesses and a good way to find trustworthy businesses was through the membership list of the local Chamber of Commerce. This idea actually died out in the 1970s and 1980s and was not actually a benefit to members in 2000.

In the past, a new business joined in the hopes of gaining local exposure and perhaps getting some additional business. Badly maligned mixers would help fulfill this role.

The new members were told to bring their “introductions” and a stack of business cards and hand them over to the mixing consoles. So in effect, the mixer became a great “sell ourselves” exercise, as non-Chamber members rarely attend the mixers.

Local collective announcements were once another way the local Chamber could promote its members; Through brochures, advertisements in local magazines and newspapers, an occasional television or radio ad. As the mass media has become more expensive, collective advertisements have gone by the wayside.

And like many organizations, local C of Cs have been hit hard financially by the recent economic downturn. As their cash flows have decreased, the ability of Chambers to hire and retain good staff has also decreased.

Hence all the ubiquitous job openings for Chamber Executive Directors. Part of the “executive package” is that the CEO must raise money to pay for himself.

This means that the chief function of the CEO is not to promote local business, but to raise enough money to keep the Chamber afloat.

But to be fair, it’s not just the CEO’s fault; What can a group do locally to promote themselves?

The biggest complaint today is that the Chamber does little or nothing for its members, making it increasingly difficult to justify the time and $ 150 fee. The first question a potential new client asks is “what advantages does it offer? my business?”

If the expectation is an increase in business, as many new members expect, then the expectation turns to disappointment over time. That’s too bad.

Communities need a strong business community to thrive, and communities with a weak business community have problems.

The simple fact is that local C of Cs are delivering less and less value to their members. Unless local Chambers can redefine their mission and find ways to add value, Chambers will simply go the outdated route of newspaper advertising.

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