The Greatest Incentive

Sponsors of The Fundraising Network provide us with a wealth of information and ideas about fundraising.  I was speaking with All Star 1 Fundraising today, and he told me about what motivates his groups that do fundraising — profits. Here is what he had to say.

The very best fundraiser incentive which is far superior to all other fundraising incentives are fundraisers with huge or high profit fundraising!!!

All Star 1 Fund Raising, offers a total of (8) high profit fundraisers with up to 60% profit fundraising.  That’s up to $7.80 profit per item depending on which fundraiser you do!  All other incentives offered by other fundraising companies such as inexpensive gadgets, trinkets, toys, electronic or high-tech games or merchandise will never compare with our 50% or 60% high profit fundraisers!!!

You can take just a small amount of your profit and buy a ‘whale-of-a-lot’ of fundraising incentives and, still at the same time retain more profit than you would make with the companies that only give you 40% profit.

Look at it this way.  It doesn’t matter what percentage of profit you make.  It all comes down to how many dollars you raise when everything is done.  It is based on how much you make per sale and how many items you sell.  Ultimately, the more you sell, the more you make, and more money made per item means more money raised.

Great incentives provide motivation for your group members to sell.  Think of it this way.  If you were a 6th grader, would you be more motivated to meet a particular sales quota if you were going to receive a cheap radio or a brand new ipod?  There are plenty of cheap “prizes” that many fundraising companies bring in from China as incentives.  What if you made more profit and used a little of it to provide fantastic incentives?  Here are a couple of examples.

You can make $10,000 selling 1000 boxes of fruit with Parker Indian River Groves.  You can offer your three top sellers a brand new XBox360 or your top 4 sellers a brand new Wii and still keep $9000 in your pocket.  Your first thought might be, “But that takes almost $1000 out of our pocket!”  However, how many items would your group have sold without those incentives?  $1000 represents the money from the sale of 100 boxes of fruit.  If your group members sold 100+ boxes more than they would have sold without the incentives, then spending the $1000 makes great sense.  Otherwise, your total amount brought home would be much less without the incentives.

Let’s use All Star 1’s example.  Let’s say that you sell $13 items.  You percentage of profit with many companies would only be 40% — about $5.20 per item.  With All Star 1, you make 60% which comes to $7.80 per item.  If you sell 1000 items, you’d make $5200 with the 40% company and $7800 with the 60% company.  If you are making 60%, you sell the same number of items, use $1000 of your profits to provide really awesome incentives and still make $1600 more than with the 40% company.

(Please note that the above examples are only for demonstration purposes.  They are not actual promises of particular profit amounts.  You need to check with your fundraising company for real profit amounts.)

Summary

All this can be a little confusing, so here’s a quick summary.

  1. Rather than considering the percentage of profit, consider the actual money made per item sold.
  2. Figure how much more money can be made by providing great incentives out of your profits that truly motivate your group members to sell than by just settling for the cheap “prizes” that many fundraising companies provide.
  3. If you can make more money by motivating your members with fantastic incentives that you provide out of your profits, then choose to make more money!

All of this can be a little daunting when you first think about it, but take some time to think about how you can make the most money from your fundraiser.  While providing your own incentives may seem like it may be costing you profits, you might find that they actually help you raise more.  The key is finding the fundraising company that pays you more so that the cost of the incentives is covered.