Many direct sales consultants find that doing fundraisers are a great way to get business exposure and sales. Following are some ideas of ways you could setup your fundraiser. All types of organizations need to raise money – PTO/schools, humane societies, sororities, churches, band/cheer/sports teams, health foundations, non-profits, etc. Proactively offering direct sales fundraisers that requires little from the organization but might yield them some good return, may be accepted!
Be sure to work on the financial details with the organization BEFORE you start the fundraiser, so everyone is clear on exactly what you will be donating. Following are some options to consider:
- Donate a straight percentage of your total COMMISSION to the organization. You would enter all orders, figure out the commission, and give them an agreed upon percentage. Let’s assume you have a 40% commission rate on your retail sales. Ex: $1000 in retail sales will be around $400 in commission. Let’s say you agreed to donate 50% of commission, or $200. Keep the hostess rewards yourself on the event to recoup your donation.
- Donate a straight percentage of RETAIL SALES. Let’s assume the same percentages as in #1 above. Ex – $1000 in retail, will yield in $400 in commission. If you offer the organization 20% of total sales, that would be $200 in donation. Same donation, but a different angle on the numbers. Keep the hostess rewards yourself on the event to recoup your donation. As long as your percentage of sales is equal to or lower than your consultant commission, you theoretically should not lose money.
- Donate the equivalent dollar value of the hostess rewards earned, and keep the hostess rewards for yourself to resell. You will keep all commissions, but break-even on the hostess rewards.
- Donate the hostess rewards to be auctioned off by the organization. Give the actual product to the organization for future silent auction, gift basket, or fundraiser. You keep all the commission on this scenario.
Or get creative, and consider any other combination of scenarios that will work for you. You want to consider your current and long term relationship with the organization, and figure out how much you want to donate. The key distinction is the difference between donating a percentage of commission versus sales, and being clear on the return the organization can expect from your direct sales fundraiser. If your brand offers a fundraiser matching program, that is another consideration to help maximize the return for the organization.
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