Facebook Versus Real Money

May 20, 2011      Admin

Yesterday we noted Facebook’s new Resource section for nonprofits, and quoted FB’s own figure of $5 million being raised through its Causes application. Laudable.

But one Agitator reader noted with a hint of sarcasm … $5 million in five years from some 50 million Facebook users wasn’t exactly a fundraising avalanche!

Then another commentator noted that Causes.com, makers of the Causes application, had actually raised over $33 million since launching in 2007.

Still not an avalanche; still less than $1 per user.

Meanwhile …

A few days earlier, Roger posted on the “Magic Fundraising Machine” — actually software that re-formats copy so it is more impactful on the reader … and delivers measurable improvement in sales (including fundraising) response. I followed up with another post illustrating what the software actually does.

Here’s a tool — if proven to deliver lift consistently — that would be invaluable to all direct response fundraisers.

These posts generated some enthusiasm, but also this Comment:

“We were super excited to try this tactic and really wanted it to work, but were disappointed! We tested on two different clients in both an acquisition and a renewal and while both saw minimal boosts from this formatting (6% revenue boost on an acquisition and 3% revenue boost on a renewal), neither had the overall performance to make the results statistically significant or to rollout for future mailings.”

Frankly, there’s something I don’t get here. For example a 3% increase in revenue on a smallish file of 50K could amount to $30,000 (at a $15 average gift). Given the fact that the technique costs about $300, not a bad return. Unless this Commentator was working with files of less than 3,000 or so donors (or donors making peanut gifts), the reported lift should have been cause for breaking out the champagne!

And if you take file size up a few notches, to 100,000 or 300,000, it would seem that there’s really big money to be made with this tool. All of course to be tested.

In any event, where do you think more of your mind share should be spent … examining a tool that might lift your direct mail (and even email) fundraising revenue by 3% or 6%, at negligible cost; or trying to squeeze another dollar out of your Facebook friends?

Tom