When we founded Pareto Fundraising, my friend Paul and I named it that for a reason: The mathematical concept of the Pareto Principle.
Most people in direct marketing understand the principle in general. They get that 80% of your income will come from just 20% of your customers, or in our case, donors. It is amazing how accurate this can be over the lifetime of your donor program.
But so what?
How do we use this fact to allow us to raise more funds?
Applying the Pareto Principle helps us allocate our resources for maximum impact.
If we can increase the income from those few top donors by just 25%, we will raise as much as we would have done from the whole donor file previously!
This effort could be bigger packs, phone calls, events or even personal visits. The point is, the Pareto Principle helps us see where we can spend more to get more.
One of the ways that this smart application of resources really ramps up your fundraising is reaching out to mid-value donors — those who fall between your general donors and your major donors. For most charities, they are an untapped goldmine!
If you’d like to learn more about how you can mine this gold, register for Sean Triner’s FREE webinar All About Mid-Value Donors. There are two webinars to choose from, so select your preferred time and register now.
Tuesday, October 3 New York: 3.30pm / Los Angeles: 12.30pm / London: 8.30pm
Wednesday, October 4 Auckland: 8.30am
Tuesday, October 3 New York: 7.00pm / Los Angeles: 4.00pm
Wednesday, October 4 Sydney: 10:00am / Auckland: 12:00 noon
Check out the video below, which we put together to explain the Pareto Principle in the context of fundraising.