Product Fundraising: Why and how you should do it

by admin | June 11, 2018 11:19 am

Product fundraising is a crowdfunding event where you buy souvenir-worthy stuffs like chocolates, mugs, lamingtons, t-shirts, jewelries, tea-towels, socks etc. from a wholesaler and sell them to your supporters. It is same as any fundraiser where you plan to reward or give perks to your donors. Instead you set a definite amount per donor and price these perks accordingly. Obviously the provision of basic crowdfunding where donors can contribute whatever they wish to, is absent in product crowdfunding. But this is the exact reason why you should product fundraising will help you reach your goal amount faster. Crowdfunding India[1] says that as long as you have a considerate seller and a product that are worth buying, product fundraising can bring unimaginable success.

Crowdfunding India[2] says that the thing that you should always keep in mind before starting product fundraising is that:

When setting your goal, you’ll need to factor in the money that you have to spend to reach their. The gross profit or the fund that you will raise will never be the same as the net funding.

You will have to pay the seller for the product, and also reimburse for the costs of promotion and distribution of the campaign. But of course this can be averted if you use online product fundraising where the entire process will be carried online and you won’t be required to pay for any marketing or advertisement.

Crowdfunding India[3] says that the most important factor in the campaign is what you are going to sell. You have to sell what people would actually want to buy. There are companies who specifically package and sell goods for non-profit groups to sell.

Crowdfunding India says that it is very important to remember that the companies selling you with stock will not sell their products without any profit. So it’s important that you keep pressing for the lowest possible cost price. You’re an independent contractor with a sales workforce you’re offering to them for a fee. No matter how much money you make by the fundraising, you will be making more for the product manufacturer.

Crowdfunding India says that you should try to work with a company, who will give you a commission, especially when you tell them it’s for a good cause. Try to make the products by yourselves or try to get them from a source where you can get it for free. Also, keep high profit margin. It is easier to sell one item of inflated profit margin than selling five items of lower profit margins.

Also try to make the point that the products are being sold not just for consumption, but for donation. Crowdfunding  India suggests that you can put your names or logos or the donors name on the product to remind him of the symbol.

There is another way you can do product fundraising, sell the products at their standard prices and then request the buyer to pay a bit extra for the purpose of fundraising. Crowdfunding India says that when asked verbally and directly, people find it extremely difficult to decline.

So choose a product that goes good with the image of your organisation, buy only the quantity you can assure will be sold and make sure you have a proper delivery system of the product. You can visit Crowdfunding India website for further details.

Endnotes:
  1. Crowdfunding India: https://www.impactguru.com/
  2. Crowdfunding India: https://crowdfundingindia.org/
  3. Crowdfunding India: https://www.impactguru.com/how-crowdfunding-works

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