SAE International, a global leader in the automotive, aerospace, and off-road industries, faced a challenge familiar to many mature associations: a traditional membership-based revenue model that no longer supported innovation or growth.
While membership remained strong, reliance on dues limited SAE’s ability to invest in emerging technologies and serve as a catalyst for industry collaboration. Recognizing this, SAE partnered with Sequence Consulting to design a new, scalable business model that would unlock major new sources of non-dues revenue and expand its influence across industries.x
Diagnosing the Problem: Growth Constrained by a Legacy Model
For decades, SAE had set global standards for engineering excellence. Yet its success as a technical society created a blind spot—its business model depended too heavily on programs built for members, not markets.
Key challenges included:
Dependence on dues: Growth was tied to membership rather than market demand.
Fragmented collaboration: Emerging industries like autonomous vehicles lacked a trusted convener for pre-competitive innovation.
Missed opportunities: SAE’s role as a neutral facilitator across sectors was underleveraged as a strategic asset.
It was time for a shift from standards to solutions—and a new way to create value for members, partners, and industries alike.
The Solution: Turning Strength into Strategy
Working with Sequence Consulting, SAE embarked on a strategic transformation grounded in Sequence’s proprietary Way to Play℠ framework—a data-driven approach that identifies untapped market opportunities and builds growth strategies around an organization’s unique strengths.
Through research, insight, and executive collaboration, the team redefined SAE’s growth strategy around its most powerful advantage: its credibility and ability to convene diverse stakeholders for collaboration.
The Breakthrough: SAE Industry Technologies Consortia (SAE ITC)
To bring this vision to life, SAE launched the SAE Industry Technologies Consortia (SAE ITC)—a new 501(c)(6) organization that provides a safe, neutral space for competitors to work together on pre-competitive technology development.
The initiative created an entirely new business model for SAE—one built on collaboration, innovation, and sustainable revenue growth.
Key components included:
Collaborative Innovation Ecosystem: A comprehensive framework supporting shared R&D, data exchange, and market acceleration.
Turnkey Services for Industry Consortia: Legal, administrative, and marketing support to reduce barriers to collaboration.
Strategic Focus on Emerging Technologies: From cybersecurity to electric vehicles, SAE ITC united leaders to solve shared challenges faster.
Results: 10X Growth and Industry Transformation
The results of this transformation were dramatic—redefining SAE’s role in the marketplace and proving the power of a visionary nonprofit business model.
- Unprecedented Growth: In just three years, SAE ITC skyrocketed 10X from concept to a $6 million enterprise, proving the game-changing power of a visionary nonprofit business model.
- Shaping Industry Leadership: As the home to 13 groundbreaking consortia, SAE ITC is tackling some of the most pressing challenges across diverse industries, setting new standards for collaboration and progress.
- Financial Empowerment: Achieving complete financial independence within a single year, SAE ITC not only sustains itself but also fuels strong net income growth for the entire SAE organization.
- A Catalyst for Innovation: SAE ITC’s consortia are pioneering revolutionary technologies, accelerating advancements that redefine industries and create lasting impact.
A Blueprint for Non-Dues Revenue Growth
SAE International’s success demonstrates how associations can unlock transformative growth by rethinking their business models.
By identifying unmet market needs and leveraging institutional strengths, associations can move beyond incremental improvements to achieve exponential impact.
Key Takeaways:
Leverage your strengths: Identify unique assets—like trust, expertise, or convening power—that can serve new markets.
Think beyond membership: Sustainable growth comes from creating solutions, not just programs.
Build for collaboration: Providing neutral ground for innovation creates both mission impact and new revenue streams.
To learn more about how Sequence helps associations diversify revenue, please see AARP’s Non-Dues Startup Soars To $43 Million.
