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$1 Million in 24 Hours
$1 Million in 24 Hours
I have never met a company that has a 100% success factor. Recently, I was part of a campaign that just blew me away. It raised over $1 million in 24 hours. There are 3 things that you can learn from this success. Below I'll share them with you.
How much money can you raise in 24 hours?
If you’re Charidy.com, the answer is anywhere from $2,000 to $1,000,000. Charidy.com, the fundraising platform that launched just 18 months ago, successfully raised over $16 million in a series of social media blitzed micro-campaigns, each lasting 24 hours.
The best part: In close to 300 campaigns, they’ve never failed to make their fundraising goal. Ever.
What is their secret sauce and how can you use that in your for-profit business?
Charidy follows a strict three-part formula:
- 3 Matchers: 3 donors are lined up who each commit to give $1 for every dollar raised
- 24 Hours: The total duration of each campaign is a maximum of 24 hours
- All Or Nothing: If the campaign doesn’t reach its goal within 24 hours, not a single donation is processed
One of the more obvious lessons from Charidy’s effectiveness lies in the way they allow each donation to be leveraged by 300%. The key to success lies in leveraging what we have to offer. Financial multiples, especially at that rate, are quite hard to turn down. Also, the 24 hour time limit creates an urgency that spurs donors into immediate action. There are many ways to create urgency, and Charidy uses the timed deadline method with clock-like efficiency. For you and me, that means we must ask the question - "How do I create urgency? How do I empower my customers to feel that they are getting major leverage with their investment with me?"
Beyond those insights, here are some other surprising takeaways:
Not What They Want, But What They Really Really Want
After years of experience in pro-bono fundraising, Charidy founder Yehuda Gurwitz told me he set out to answer “What DO donors want?” Not what we think they want or even what they say they want. Rather, what do they really, really want?
He boiled it down to three elements:
- Financial Value
- Social Giving
To satisfy each of those needs, Charidy created a platform that would deliver multiples of do-gooder value, generous online recognition and a broad social media sharing experience. What they really, really want wrapped in a URL bow. Ask yourself what your customers want. Now ask what they really, really want. Do they feel overwhelmed and need relief? Maybe they want social status? Emotional validation? Solving a problem or achieving a pleasure? The more closely you can define your customers' underlying needs the more effectively you’ll be able to deliver value to them and your own bottom line.
Fear is Greater Than Hope
President Snow, of Hunger Games infamy, insists “Hope is the only thing stronger than fear.” Judging by box office receipts, that makes for great big screen drama. In business though, it appears that fear actually trumps. Says Gurwitz, “Our campaigns succeed because of the energy they create; they don’t fail because nobody can bear the thought of losing all the pledged money.”
By creating a reality where the entire “family farm” is lost if donations are not made, they ratchet the fear factor to the max. This concept of gaming is sweeping the country. How can you add an element of chance to the experience of doing business with your company?
Learn how you can apply these principles to your unique business model. Give us a call or shoot us an email. Come to think of it, why don’t you do that within the next 24 hours:-)
While donors may hope their favorite cause gains because of them, they’re downright afraid to see their favorite cause lose because of them. Chances are your customers want your product because they fear what might happen if they don’t make a purchase. Might they lose hard earned money? Will they miss an opportunity they’ll regret? Will they put their health at risk?
While staying optimistic is absolutely key to selling, it’s also important to communicate the dark side to inaction. Think of the difference between:
“This year’s model has best-in-class acceleration rated by Car & Driver Magazine.”
“With traffic accidents being the leading cause of death among young people, this year’s model takes care of your family with its safest-in-class NHTSA rating.”
Put Your Pipeline in Your Pocket
Just because you haven’t closed a deal doesn’t mean it can’t be used to your benefit.
To get a Charidy campaign off the ground you need to line up 3 matching donors. What does one of those pitches sound like? Here's a possibility:
“Hi Ms. X, we’ve appreciated your support over the last 3 years and want to suggest a unique opportunity to stretch your giving this year. We can guarantee that every $1 you give will be matched by $3!”
The organization then approaches Mr. Y and Dr. Z with the same pitch. Finally, it takes that same commitment to the online giving public.
As mentioned, the value of this campaign is built on financial leverage. Yet, throughout the campaign no financing is actually in place; not a single dollar has yet been raised! Up until the campaign’s successful completion, you can have your cake and eat it too. Donors keep the money, while it’s being used to spur the campaign forward.
Here are some ways you can use your own not-yet-closed sales:
- Pool together a group of high value prospects for a free seminar or webinar. They will be impressed by the quality of your “client base” without your having a single one of those people on board
- Offer free products to opinion makers in your target market with the request that they post a review on social media
Quick Take Aways. Look for ways to:
- Create scarcity.
- Help your customers get more leverage
- Not just ask what they want, but what they really, really want
- Add an element of unknown outcome and use gaming
- Show what they will lose out on if they don't act
- Use social support to encourage your customers helping one another
Learn how you can apply these principles to your unique business model. Give us a call or shoot us an email. Come to think of it, why don’t you do that within the next 24 hours. :-)