School Fundraisers Leveraging the MLM Business Model – Part Two

Earlier I told you that programs and organizations, such as 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 avenues of cash, 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 defect of these two methods is that:

1 – Take an enormous amount of time that distracts from your mission.
2 – No residual effect.
3 – Frequently the products offered may not be aligned with the objectives of the organizations or represent good choices.

In the early 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 the dealer a commission or simply selling to the dealer at a wholesale price and allowing the dealer 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.

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 they succeed.

But we haven’t talked about your fundraising 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 obtain it, but which as a “trade” becomes a synergistic fit that benefits both entities.

This is the relationship that can exist between direct selling companies, sometimes called network marketing or MLM companies, and organizations that need to raise funds. A legitimate MLM always has a product or service to sell. Attracting potential clients 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.

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

A mailing list.

Whether you are a multinational company or an entrepreneur who works from home, 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 reflects its values ​​and mission statement and provides value to its supporters. Those who need to raise funds are in CONSTANT contact with their sponsors. If they aren’t, 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 chains, website and correspondence, and a productive synergy is all unleashed 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 fundraising routine 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 lists, but who do they know? This is another benefit of an MLM fundraiser.

Typically, a geographic area becomes saturated with traditional fundraisers. Schools are a perfect example of this, as several hundred students are 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’s 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.