The hype and potential of social networks

The Hype and Potential of Social Networks

“One Million

Dollars…”

Justin PerkinsDirector Nonprofit Strategyjustin@care2team.comtwitter: @elperko

Are you ready to reach 100,000 supporterstomorrow morning?

Three Principles of Online Fundraising

1. Be prepared to be lucky

2. Right tool for the right purpose

3. Meet the needs of your supporters

LUCK

“Luck happens when preparation meets opportunity.”

—Oprah Winfrey, most famous talk show hostess, ever

Here’s What DID NOT Happen:

Did not raise over $100,000 in a week online

Did not grow their email list by over 100,000

Did not prepare the organisation to make recurring annual revenue of $100k-$400k

US Nonprofit ~Email List Size

% of US Population

Oxfam US 500,000 0.2%

Greenpeace 1 Million + 0.4%

Humane Society

1 Million + 0.4%

WWF 1 Million + 0.4%

To Do: Get Ready to be Lucky

If an opportunity or crisis happened tomorrow, could you reach enough people to help?

frogloop.com/benchmarks

TOOLS

Median $ raised from Facebook Causes with > 20,000 Members Median $ raised Non-profit Email lists with < 10,000 Contacts

$47,000$47,000$570$570

OPPORTUNITY COST =

Better or more profitable opportunities you miss choosing to do something else with your time or money.

EMAIL$415,000 raised in 1 week

vs.

Facebook Causes$28,000 raised in 1 year

“If an investment does not have a positive Return On Investment, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.”

RETURN ON INVESTMENT (ROI)

=

(Gain from Investment – Cost of Investment)------------------------------

(Cost of Investment)

Hint: You can raise 50-200 times more money via email

than through an equivalent social network list.

Mobile phone list

Mobile phone list

Social media “friends”

Social media “friends”

Direct mail listDirect mail list

Email listEmail list Phone listPhone list

To Do: Choose the Right Tool

Make a list of your goals, first, and then choose the most proven tools to reach that goal.

Frogloop.com/benchmarks

Supporters

“Motivation is the art of getting people to do what you want them to do because they want to do it.”

– US President Dwight D. Eisenhower

Meet Three Human Needs:

1. Connect with a group

2. Have voice heard

2. Create and be creative

Tell stories

The Supporter is the Hero

Keep it Personal

Make global problem local

Fulfill the supporter’s needs

Make People Feel Good

To Do: Meet Supporters’ Needs

Did you meet your supporters’ need to be part of a group?

To be creative? To have one’s voice heard? Did you tell a story?

Three Principles of Online Fundraising

1. Be prepared to be lucky

2. Right tool for the right purpose

3. Meet the needs of your supporters

www.socialnetworkcalculator.comwww.socialnetworkroi.com

Resources

Contact

Justin PerkinsDirector Nonprofit Strategyjustin @ care2team.comtwitter: @elperkoskype: justinperkins