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Digg It - Fundraising Letters Should Raise Donors, Not Donations, When Mailed to Strangers
Are you willing to spend $1.25 to raise $1? To lose money to make money? You should be. Most donor acquisition mailings never pay for
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
themselves. They lose money. And rightly so.
Acquisition letters (letters designed to acquire new donors) should be a vital part of
Acquisition letters (letters designed to acquire new donors) should be a vital part of
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
your development program. Current donors fall away. Some lose interest in your mission. Some lose their jobs. Other leave the country
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
. Some die. You need to be mailing fundraising letters to people who have never supported your cause in order to replace the donors wh
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
o fall away every year through no fault of yours.
But to be successful at acquiring new donors, you need to ignore one set of numbers
But to be successful at acquiring new donors, you need to ignore one set of numbers
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
and fix your eyes on another. The numbers to “ignore” are the costs of getting your first donation. According to James Greenfield, in
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
his excellent book, Fund Raising (second edition), you can expect to pay anywhere from $1.25 to $1.50 to raise $1 with an acqu
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
isition mailing. That doesn’t sound like a wise use of your resources, does it?
But with acquisition fundraising letters, you need to
But with acquisition fundraising letters, you need to
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
have your eyes fixed on the lifetime value of your donor, not the short-term value of their first gift. You need to remind yourself (
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
along with your board members, key volunteers and inexperienced colleagues) that your goal with acquisition mailings is to acquire fri
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
nds, not funds.
Let me illustrate.
Let’s say you mail a fundraising letter to a list of 10,000 strangers. These are people wh
Let me illustrate.
Let’s say you mail a fundraising letter to a list of 10,000 strangers. These are people wh
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
o have not supported your organization before but might. Assume that your costs for writing, design, production and postage come to $0
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
.60 a piece. Your mailing costs are thus $6,000. Let’s say you receive a 1 percent response rate. That’s 100 gifts. Further assume tha
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
t the average gift is $30 Your income is $30 x 100 donors, namely, $3,000.
Your costs are: $6,000
Your income is: $3,000
Yo
Your costs are: $6,000
Your income is: $3,000
Yo
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ur net loss for the campaign is: $3,000
Are you in trouble? No. Here’s what you tell your executive director. “We gained 100 new dono
Are you in trouble? No. Here’s what you tell your executive director. “We gained 100 new dono
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
rs. And up to 80 percent of them will give again, provided we follow up properly and solicit their gifts in the right way in the futur
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
e.”
Each of these new donors effectively cost you $30 each (your net loss divided by total new donors). Are you willing to spend $30
Each of these new donors effectively cost you $30 each (your net loss divided by total new donors). Are you willing to spend $30
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
today to raise a friend who will likely give your organization hundreds of dollars in gifts in years to come? You should be, provided
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
you can remember that your goal with acquisition letters is to raise a donor, not a donation.
My thanks go to Stanley Weinstein and h
My thanks go to Stanley Weinstein and h
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
is book, The Complete Guide to Fundraising Management (second edition), for his insight into the economics of donor acquisition
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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