School Fundraisers Leveraging the MLM Business Model – Part Two

I previously told you that programs and organizations, like schools and community organizations, that used to enjoy income dependent on taxes and donations, are now struggling to find new sources of income. Faced with this abandonment of traditional cash avenues, most schools and organizations are turning to fundraising in one of two ways:

• Carrying out an event such as a fair, carnival or sale.
• Sale of goods or services.

The flaw of these two methods is that:

1 – Taking an enormous amount of time distracting you from your mission.

2 – Have no residual effect.

3 – Frequently the products offered may not be aligned with the objectives of the organizations nor do they represent good choices.

At the beginning of the 20th century, direct sales gave way to Network Marketing. A brilliant model that gave autonomy to the individual and at the same time created a fluid sales channel for the producer.

This direct selling model relieved the manufacturer of onerous marketing expenses by paying a commission to the distributor or by simply selling to the distributor at a wholesale price and allowing the distributor to sell at whatever price the market would accept.

The manufacturer had a stable sales channel, and everyone was happy. For the seller, the challenge became finding the buyer.

The Fuller Brush Company’s approach was to go door to door, the iconic “Fuller Brush Man”. Then came other iconic models like Harold Tupper and the “Tupperware Home Parties”, then Avon, Amway, Mary Kay and others. Now thousands of companies choose this model to market their products and succeed.

But we haven’t talked about your fundraiser yet, have we?

You’ve already figured it out: in boardrooms it’s called a Joint Venture. Two parties, each of which can bring something to the table that doesn’t cost them as much as it would cost the other party to get it, but as a “trade” it becomes a synergistic fit that benefits both entities.

This is the relationship that can exist between direct selling companies, sometimes called network marketing companies or MLMs, and organizations that need to raise funds. A legitimate MLM always has a product or service to sell. Attracting leads is no less of a challenge for a work-at-home stay-at-home mom than it is for a corporate titan. This is where synergy comes into play.

The charities, schools, churches and others who turn to fundraising to support their tax burdens have one thing in common that is worth their weight in gold to the direct marketer:

A mailing list.

Whether you are a multinational company or a home-based entrepreneur, the challenge is always the same: finding motivated and qualified buyers. It’s a match made in heaven! Network marketing companies choose their products based on demand. These are typically consumer-intensive products such as health and beauty products, collectibles, legal services, phones and phone services, and more.

It is relatively simple for an organization to choose a company and product that reflect its values ​​and mission statement and add value to its followers. Those who need to raise funds are in CONSTANT contact with their sponsors. If they’re not, they don’t stay long.

This list of sponsors is the holy grail for the network marketer and all the fundraising organization needs to do is endorse the marketer, include contact information in their existing communication channels such as emails, newsletters, phone trees, website and correspondence, and a productive synergy is sparked all with virtually no effort on the part of the recipient of the funds. They simply include a reference or link to the marketer in existing channels. Privacy is intact and productivity soars as the routine of fundraising moves from brick-and-mortar to virtual.

A marketing expert will point out that your exposure is viral. It’s not just the names on the organization’s lists, but who do they know? This is another benefit of a fundraiser with the MLM model.

Typically, a geographic area becomes saturated with traditional fundraisers. Schools are a perfect example of this, with several hundred students tasked with selling a product in the same neighborhood. The MLM model extends your reach, depending on the company you choose, to anywhere in the world.

Your school or organization has a very powerful resource: it is a list of supporters and who they know they would be willing to support. The only real job for the recipient is choosing the right company and marketer to partner with. In Part Three, I explain how to choose a company that supports your goals.