Nonprofit Radio for December 20, 2021: Zombie Loyalists

My Guest:

Peter Shankman: Zombie Loyalists

Peter Shankman is a 5x best selling author, entrepreneur and corporate keynote speaker. His book “Zombie Loyalists” focuses on customer service; creating rabid fans who do your social media, marketing and PR for you. This is our annual rebroadcast of a show with very smart ideas for you to think about over the holidays. It originally aired 12/19/14.

 

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[00:00:04.14] spk_3:
Hello

[00:00:52.94] spk_2:
And welcome to Tony-Martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d suffer the embarrassment of Brome Hydro sis if I had to walk through the idea that you missed this week’s show. Zombie Loyalists. Peter Shankman is a five time best selling author, entrepreneur and corporate keynote speaker. His book, Zombie Loyalists, focuses on customer service, creating rabid fans who do your social media marketing and PR for you. This is our annual rebroadcast of a show with very smart ideas

[00:00:57.71] spk_1:
for you to think about

[00:01:19.84] spk_2:
over the holidays. It originally aired December 19, Antonis, Take two Thank you for the year We’re sponsored by turn to communications, PR and content for nonprofits, your story is their mission. Turn hyphen two dot c o. Here is a zombie loyalists.

[00:02:41.54] spk_1:
Peter Shankman is a well known and often quoted social media marketing and public relations strategist. His latest book is Zombie Loyalists. He wants you to create rabid fans who do your social media marketing and PR for you. He’s got super ideas and very valuable stories. I’m very glad Peter Shankman is with me in the studio. He is the founder of Haro. Help, a reporter out connecting journalists with sources in under two years from starting it in his apartment. Horror was sending out 1500 media queries a week to more than 200,000 sources worldwide. It was acquired by Vocus in 2010. He’s the founder and CEO of the Geek Factory, a boutique social media, marketing and PR strategy firm in New York City. Peter is on NASA’s civilian Advisory Council. You’ll find him at Shanklin dot com, and he’s at Peter Shankman on Twitter. His latest book is Zombie Loyalists, using great service to create rabid fans. I’m very glad his book brings him to nonprofit radio and the studio Welcome, Peter. Good to be here, honey. Thanks Pleasure. You, um, live on the West Side of Manhattan And you and you. There’s a there’s a pretty well known five star steakhouse. I’ll get Wolfgang’s not far from you,

[00:02:44.54] spk_0:
but you pass

[00:02:45.28] spk_1:
it to go to a different steakhouse. Correct? Morton’s correct. Why is that?

[00:04:33.94] spk_0:
I am a zombie loyalist to Morton’s. What does that mean? I, uh love the service, the attention to detail, the quality, the the sort of where everyone knows my name mentality. When I walk into that Morton’s or any Morton’s around the world, they have a tremendous, uh, customer relationship management system. When I call one number, uh, in New York or anywhere in the world, it they know who I am by my cell phone. And, uh, I’m treated with just, you know, phenomenal, uh, happiness to to hear from me and my wishes are granted as it were. I we have a happy hour holiday party coming up at Morton’s next couple of days. And, you know, as always, I forgot to call and make a reservation. And, you know, I called yesterday and said, Hey, I need a, uh, she has to get a reservation for seven people. Um, you know, Thursday night at seven p.m. Which is, you know, the week of the holiday party, and, uh, they looked and they said, Oh, well, and then I guess their computer system kicked in. Of course, Mr Shank, not a problem at all. We’ll get the frame and we you know we’ll have. We’ll have a great booth for you that, um, you know, and we’ll we’ll tell us the names of people attending and, you know, you know, you know, they’re gonna have specialized menus for them and their names on they Really, they have a really high level of service that they provide, not just to me. That’s the beauty of it. You know, it’s one thing, everybody. Yeah, it’s one thing that they just provided to me, but they do that for everyone. And that is huge because, you know, being able to call when a normal person makes reservation. And not that I’m special. I’m actually rather abnormal. But when a normal person makes a reservation and says, Uh, no, Martin says. Okay, great. Are you celebrating anything? So, yeah, it’s my wife’s birthday that’s always asked to anyone who calls. I said, Oh, you know what? It’s my wife’s birthday. Great. What’s her name? And her name is Megan. Whatever. And you go in and they and you sit down on the on the on the menu. It says, Happy birthday, Make it. And then Megan, whoever she happens to be, we’ll spend the next 45 minutes, you know, taking 50 selfies with her menu and and that will go online. And when her friends, you know, want that same experience, they’re going to go Morton’s,

[00:05:04.54] spk_1:
you say, uh, in in the book, you get the customers you want by being beyond awesome to the customers you have. And that’s why I wanted to start with that Morton story, which is in the middle of the book. But they do it for everybody, and then they have the V. I. P. S as well. And there’s the terrific story of you tweeting tell that story. That’s a good story. It’s

[00:07:24.54] spk_0:
a good story. I love stories. I was flying home from a day trip to Florida and was exhausted and starving, and they trip meeting you’re flying down and slow down at six a.m. At a lunch meeting, flew back the same day. You know, one of those one of those days, and I jokingly said, the tweet Hey, Morton’s, why don’t you meet me at Newark Airport when I land with a porterhouse in two hours? Ha ha ha ha ha. Um, you know, I said it the same way you’d say, Hey, winter, please stop snowing. Things like that and I landed. Uh, find my driver and sit next to my driver is a, uh is a waiter in a tuxedo with the Mortons bag. They saw my tweet. They put it together. They managed to bring me a, uh, a steak and, you know, as great of a story as it is, it’s that’s that’s it’s a great stunt and it’s a great story and it wasn’t stage, and it was completely amazing. But, you know, that’s not what they’re about. They’re not about delivering states airports. They’re about making a great meal for you and treating you like world when you come in. And you know, if they just did that, if they just delivered the state of the airport, but their quality and service sucked, you know, it wouldn’t be a story because, you know, you know what they did for Peter. But, you know, my steak is cold. So what it really comes down to is the fact they do treat everyone like kings. And that’s that’s really, really important, because what ends up happening, you have a great experience importance. And then you tell the world you know Oh, yeah, Great dinner last night. that was amazing. I would totally eat there again. And as we move to this new world where you know, review sites are going away and I don’t I don’t need to go to yelp reviews from people I don’t know. You know, if they’re shills or whatever the case may be, I don’t know. Or trip Advisor. Same thing. I want people in my network quite trust and and people in their network who they trust by default, I trust. So that’s gonna be that’s already happening automatically. You know, when I when I land in L. A and I type in steakhouse, uh, you know, not me. I know, I know where the steak house in l. A. But if someone types into Google Maps or Facebook Steak House in Los Angeles, you know they’ll see all the steak houses on Google map. But if any of their friends have been to any of them, they’ll see those first. And if they had a good experience, only if the sentiment is positive. Well, they see those first. And that’s pretty amazing, because if you think about that, the simple act of tweeting out of photo Oh, my God. thanks so much. Martin’s love this. That’s positive sentiment. The network knows that. And so if you’re looking for a steakhouse, you know, and your friend six months ago, I had that experience. Oh, my God. Amazing state. This is a great place. There’s a the sentiment’s gonna be there. And and And the network will know that network will show you that steakhouse because you trust your friend.

[00:07:25.84] spk_1:
And this is where we start to cultivate zombie loyalists. Exactly. Through this awesome customer service of the customers, you you have to say more about

[00:08:22.64] spk_0:
zombie. I mean, you have so many companies out there who are trying to get the next greatest customer. You know, you see all the ads, you know, the Facebook post. You know, We’re at 990 followers are 10 are 1000. Follower gets a free gift. Well, that’s kind of saying screw you to the original 990 followers who you had who were there since the beginning. We don’t care about you. We want that 1000 you know, that’s not cool. Um, the the the companies who see their numbers rise and you see their fans increase and their their, um um revenues go up are the ones who are nice to the customers they have. Hey, you know, customer 8 52. It was really nice of you to join us a couple months ago. How? You know, how are you? We noticed that you posted on something about a you know, your car broke down. Well, you know, we’re not in the car business, but, you know, your your two blocks from our our closest outlet or whatever. And you know, if you if you need to come in, have a cup of coffee when I use the phone, Whatever. You know, those little things that you can do that that that really focus on the customers you have and make the customers. You have the ones who are the zombies who tell other customers how great you

[00:08:35.54] spk_1:
are. And this all applies to non profits, certainly as well in

[00:09:12.94] spk_0:
the system. But even more so, I mean, if you you know, non profits are constantly worried about how to how to make the most value out of their dollar and how to keep the dollar stretching further and further, and you know you have this massive audience who has come to you, who is a non profit? Who said to You know, we want to help here we are volunteering our help and just simply treating them with the thanks that they deserve, not just as simple. Hey, thanks for joining us, but actually reaching out, asking what they want, asking how they like to get their information. Things like that will greatly increase your donations as well as, um, making them go out and tell everyone how awesome you are and letting them do your PR for you. And

[00:09:17.22] spk_1:
that’s what a zombie loyalist does. And this is for this. Could be donors could be volunteers organization who aren’t able to give a lot. But giving time is enormous.

[00:09:25.27] spk_0:
And if you know if they have such a great time doing it, they’ll bring friends

[00:09:29.84] spk_1:
as zombies.

[00:09:49.84] spk_0:
Do you know zombies have one purpose in life? A. Real zombies have one purpose in life that’s to feed. It doesn’t matter. How the Mets are doing it doesn’t matter, you know, because chance that they lost anyway. But it doesn’t matter how, how anyone is doing, you know, or what’s going on in the world and any kind of bad. It doesn’t matter what matters with zombies. Where are they gonna get their next meal? Because they feed and they have to infect more people. Otherwise they will die zombie loyalists to the same thing. All they have to do is make sure that their customer, they tell the world, and we all have that friend who does it. You know that one friend who eats nothing but the olive garden because oh my God’s greatest breadsticks everywhere, you know and they will drag your ask the olive garden every single time they get that chance. That’s a zombie loyalist,

[00:10:04.75] spk_1:
and you want them to do that for your nonprofit, and there’s a big advantage to being a smaller, smaller organization. You could be so much more high touch, and we’re gonna talk about all that. We got the full hour with Peter Shankman. Gotta go away for a couple of minutes, stay with us.

[00:10:35.54] spk_2:
It’s time for a break. Turn to communications. You’re 2022 writing. Do you have time to do all the projects that you need to do? Like social posts and blog posts, newsletters and annual report Web updates board reports, fundraising appeals and acknowledgment messages. What about your staff Communications? What about your process? Documentation? What about training and on boarding documents?

[00:10:51.74] spk_1:
Do you need help with writing

[00:10:53.52] spk_2:
In 2022?

[00:10:55.64] spk_1:
I mean, you can talk to them about

[00:11:24.24] spk_2:
2023, but that seems premature. But if you need help in 2022, with all your projects talk to turn to, they can create the content for you. They’ll get to know your tone and your messaging. They’ll create in your voice, turn to communications. Your story is their mission. Turn hyphen two dot c o. Now back to zombie loyalists.

[00:11:27.44] spk_1:
Peter, it doesn’t take much to stand out in the customer service world, does it?

[00:11:52.24] spk_0:
It really doesn’t, you know. And the reason for that is because we expect to be treated like crap. You know, if you think that I I I love this example. Whenever I give speeches, I asked, I asked everyone the audience I’m like who here has had a great flight recently, Like at least one person raised their hand. I’m like, Okay, what made it great and without fail. And I said, Well, we took off on time and I had the seat I was assigned and we landed on time. And so you paid for a service. They delivered that service and you’re over the freaking moon about it. Like that’s the state that we’ve become. You know, that’s how bad customer service has been that you are just beyond thrilled that they did exactly what they said they were gonna do it. Nothing more.

[00:12:05.51] spk_1:
Less than 20 minutes in the post office line.

[00:12:24.44] spk_0:
And I’m ecstatic Exactly. You know, it’s so we really are at a point where we only have to be one level above crap. I’m not even asking my client to be good. Just one level of crap. You know, if everyone else’s crap and you’re one level above that, you’re gonna win. It’s my favorite. One of my favorite jokes. Um, the two guys are out in the woods hunting in the woods and or just jogging and was the first one sees a bear and they see these bearings bears raised and he’s about to strike. And the first one reaches down and tightens up his laces on his running shoes and see what the studios don’t be. Don’t be. Don’t be an idiot. You can’t outrun a bear because I don’t need to. I just need to outrun you. You know, I love that joke because it’s it’s so true. That’s the concept. You know, all you have to do is be just a little bit better than everyone else and you’ll win the whole ballgame.

[00:12:50.14] spk_1:
Now we have to set some things up internally in order to have the structure in place to create these The zombie loyalists.

[00:16:14.14] spk_0:
Yeah. I mean, you have a you have a company where the majority of people in your company are afraid to do anything outside the norm, you know? I mean, look at look at the cell phone company. You know, they call them cause you have a problem, right? 18 T or T mobile. You call them, you have a problem. They are actually the customer service people to handle your caller, actually judged and rewarded based on how quickly they can get you off the phone. You know, not on whether or not they fix your problem, but how fast they can get you off the phone. Which means how many more? Cause I remember I worked when I worked in America Online. We all had to do a day of customer service every month just to see what it was like. That was a brilliant idea. But, you know, again, it was a system called Vantive, where you’d sign on and as soon as you signed on, if you want to call, you know, that was tacked against you. And if you were in a call and and it went over a certain amount of time, that was tacked against you, So the decks were stacked Not in the favor of the customer. There are some companies out there who allow their customer service employees to simply be smarter about what they do and do whatever it is they need to do to fix the problem. Um, you know, my favorite story about this Verizon, uh, wireless. I went overseas as in Dubai, and I landed to buy and I turned on my phone. I had gotten global roaming on my phone, Which, you know, $20 for every 100 megabytes. Okay, so I land and I turn on my phone and it says, um, like before I’m even off the plane. I get a text that you’ve used $200 in roaming charges on what the hell you know, $300 by the time I get off the plane. Like something’s up here. So I called Verizon and a nice guy answer the phone and Oh, yeah. I mean, you know, the first thing that was Yes. So you do have global roaming, but it doesn’t work in Dubai, I’m like, Okay, well, that’s not really global. That’s more hemispherical. Roaming, I think is the issue. And so the, uh I said, Well, look, I’m gonna be here for a week. I said, you know what? You have my credit card on file build me like I don’t know. Can you give me, like, 1000 bucks and just let me have the phone for, like, the week? And you know, daddy, you know, 500 bucks, I won’t go over two gigs. Would just do something for me. Sorry, sir. I’m not authorized to do that. Um, you can. I’m like, So what do I have? He’s like, Well, you can pay $20.48 a megabyte. I’m like, I’m sorry. Seriously, which equates essentially two. I will be charged $20.48 seconds, $20 or 48 cents for every I think at the time was for every four seconds of the video Gangnam style, if I decided to watch on my phone Like this is pretty ridiculous. So I simply hung up, hung up on Verizon. I went down the street to do by the mall of the Emirates, which is the largest mall in the world, has a freaking ski slope in it. And I’m not joking. It has a ski slope in the small and, uh, went to one of the 86 different electronic stores in this mall. Uh, but an international unlocked version of the same exact cell phone I have went next door to the local SIM card store, bought a SIM card that gave me 20 gigabytes of data and 1000 minutes of talk for $40. I then put that in my phone because it’s an android phone. I simply typed in my user name and password for Google and everything imported, and Verizon did not get a penny on that trip. Um, how easy would have been for Verizon to say Okay, you know what? We’ll cut your brake uh, they still make a lot of money off me. And I would tell the world how great Verizon was to work with and how wonderful, how helpful they were. Instead, They guaranteed that I will never they will never make a penny for me on any international trip. And I take, what, 15 of them a year. Because now my cell phone, um, my international cell phone that I bought all I do is pop out the SIM card in my land. Wherever I am, put in a new SIM card. So

[00:16:14.85] spk_1:
and you’re speaking and writing and telling bad

[00:17:32.54] spk_0:
stories, Of course. And and every time I tell the story about Verizon, I make it a little worse. Apparently, Verizon, uh, tests out the durability of their phone by throwing them kittens. I read this on the Internet Must be true, but, you know, not necessarily. But you know, the concept that that all they had to do, all they had to do was in power mark customers. And it wasn’t Mark’s phone. Mark was a really nice guy, but he was not allowed to do that. He would get fired if he tried to do a deal like that for me. And so it’s this concept, you know. And the funny thing is, it comes down to if you really want to go down the road. In terms of a public company like Verizon of where the issue is, you can even trace it to fiduciary responsibility because the fiduciary responsibility of any company CEO all the way down to the employee is to make money for the shareholders. Okay, that’s the future. Responsibility means by not allowing me, they’re not allowing Mark, the customer service agent to to help me and take a different tack. He’s actually losing money. Too many CEOs think about the next quarter, so we have to make our numbers. Next quarter, I’m fired. Companies in other countries tend to think of the next quarter century, And they make a much bigger difference because they think, Okay, what can we do now that will have impact in the next 5, 10, 15 years, you know, and really implement the revenue that we have and and augment and companies Americans don’t think about that, and that’s a big problem. I

[00:17:39.24] spk_1:
buy a product line, uh, has a lot of natural and recycled materials its seventh generation and their, um, their tagline is that in in our every decision, we must consider the impact on the next seven generations. It comes from an American Indian.

[00:17:48.98] spk_0:
It’s a great it’s a great line. I mean, just think about how much money Verizon would have made for me in the past three years. Just just in my overseas, you’d be telling

[00:17:55.71] spk_1:
a story about like them about Martin’s like the one of Morton’s

[00:18:19.64] spk_0:
look, a lot of people listen to me and they for a time when you Googled roaming charges variety When you Google Verizon roaming charges. My story about how I saved all this money came up first because I did the math. And if I had not called Mark and bought my own self on and done this, I would have come home with $31,000 cell phone bill and your damn of what I’m gonna do anything about that would be like up Too bad. Sorry should read the fine print

[00:18:23.91] spk_1:
and plus the the employee who sold you the quote international

[00:18:27.56] spk_0:
plan, right?

[00:18:28.53] spk_1:
I’m sure you told her,

[00:18:29.93] spk_0:
she said, where we’re going, I’m going to Canada and I’m going to Dubai. I’m assuming she didn’t know where to buy, was she? Probably. It was near Canada, but, uh, yeah, Long story short, I couldn’t use it.

[00:18:40.14] spk_1:
All right. So employees have to be empowered. There has to be. We have to be changing a thinking too. I mean, the customer has to come first. The donor of the volunteer

[00:20:41.74] spk_0:
Don’t volunteer. You get at the end of the day, where is your money coming from? I don’t care if your nonprofit or Fortune 100, where’s the money coming from? You know, and if you we see it happening over and over again, we’re seeing what you’re seeing right now. Play out every single day with the company uber, um, and uber. It’s so funny because uber makes, uh, you know, they’re valued at $40 billion right now, but that doesn’t mean anything that doesn’t mean anything. If people are running away in droves, which people are, there’s a whole delete your uber app movement. People are God’s people are leaving. What’s the problem? Well, it’s several number one. That uber is run by a bunch of guys who honor the bro code. The company was actually started by a guy who, in on business in business insider, said he started the company to get laid. Um, his goal was to always have a black car When he was leaving a restaurant, uh, to impress the girl he was with that he came out and said that And you see that culture run rampant throughout uber, um, from their God mode, where they can see they actually created. It was, uh I don’t know where I read this business insider as well. It was They created a hookup page that showed or or or or walk of Shame Page that showed where, uh, women were leaving certain apartments like on weekends going, leaving certain place on weekends, going back to their home. Um, it was obvious that they, you know, met some guy like they did that. And then, of course, just their whole surge pricing mentality, which is, you know, two days ago there was a couple days ago. It was a the terrorists of the figures, a terrorist attack in Sydney at that at that bakery and Sydney, uh, uber and Sydney instituted surge pricing for people trying to get out of harm’s way. You know, and and they later refund it. Always a computer glitch. You know, I’m sorry. You have a stop button. And you can when you see something happening like that, this has to be someone in the office, because you know what? Not cool. We’re going to take care of that and and hit the stop button. And it was Yeah, bad tons and tons and tons of bad publicity. You know, I was having an argument with one of my facebook page facebook dot com slash peter Shankman Because they said, Oh, you know, um, so what? They don’t they don’t turn on surge pricing, don’t have enough cabs there, and, you know, people can’t get home. I said I’m pretty sure that the only I’m sure that no one had cab companies there. I’m sure that there wasn’t anyone who had enough cars, their private cabs, ubers, whatever. Yet the only stories I read about companies screwing up during the event where uber not Joe’s Sydney cab company. You know, I didn’t see him screwing up because he didn’t turn on surge pricing. You gotta You gotta respect your customer. You have to,

[00:21:07.34] spk_1:
As we’re training for that then not only, uh, trying to change their mind shift. Well, in in trying to change that mindset rewards for for customers, for employees that do go, do go the

[00:22:11.74] spk_0:
extra mile. Well, first of all, if you give the employees the ability to do it to go the extra mile and I understand they won’t get fired, you’re not gonna get into. I always tell every one of my employees you’re never gonna get in trouble for spending a little extra money to try and keep a customer happy. You’ll get fired for not doing it. You know, you get fired for, not for seeing an opportunity to fix someone and not taking not doing everything that you could. You know? Ritz Carlton is famous for that. Ritz Carlton hires people not because whether they can fold a bedsheet but for how well they understand people. Because in Rich Collins mind, it’s much more important to be A people person and be able to be empathetic. And that is such a key word. Empathy is just so sorely lacking. You know how many have called customer service? Yeah, you know, I have to have to change my flight. My my my aunt just died. I really need to 100. Okay, great. That’s $300. I just want to go an hour earlier. You know, you show up at the airport, your bag is overweight by half a pound. $75. I just Can you Can you just cut me some slack? Nope. So empathy and giving the custom, giving the employee the ability to understand that the customer that sometimes you can make exceptions and it is okay to make changes.

[00:22:18.91] spk_1:
And this is where a smaller organization has huge

[00:22:33.84] spk_0:
advantage. It’s easier to change. That’s what kills me. You know, I go to these. I try to frequent small businesses when I can I go to some of these small businesses and they won’t they act like large businesses, you know, in the respect that they don’t have a like they

[00:22:35.45] spk_1:
want to be respected. Almost. They

[00:23:14.14] spk_0:
Don’t have, like, a 66,000 page code that they have to adhere to. They can simply, uh, do something on the fly. And yet, for whatever reason, they won’t do it. And and it’s the most frustrating things. Like guys, you’re acting like a big you’re acting like Mega Lo Mart here, you know, And you’re not Mega Lo Mart, and you’re just Joe’s house of stationary, whatever it is and you know, Not be able to help me. You’re pretty much killing yourself because you don’t have 85 billion customers that come through the door after me, you know? But I have a pretty big network, and for small business to get killed socially, as social becomes more and more how we communicate, you know, it’s just craziness.

[00:23:23.64] spk_1:
It’s, you know, we’re pretty much in the world. I think we’re something almost hasn’t happened to you unless unless you share it.

[00:25:44.34] spk_0:
I joked that, you know, if I can take a selfie. Was I really there? Um but it’s true, you know, we we do live in a world where, you know, I remember God 10 years ago. Maybe not even not even 10 years ago. I was one of the first people to have a phone in my camera you know, and it was like drinking from that’s what I said. Yeah, I can’t find my phone right. And it was like a I think it’s a 0.8 megapixel, you know, it looked like I was taking a picture with a potato. But it was, um it was this. I remember it was 2000 and two, and I was in Chase Bank and there was a woman arguing with the teller, and I pulled out my video. You know, it was it was the crappiest video you’ve ever seen. But I pulled it out and I said, You know, uh, I started recording, and the woman behind the woman behind the counter was the woman behind the counter was talking to the customers, saying, You do not speak to me that way. You get out of this bank right now and the customers saying, I just wanted my balance, and you and the manager comes over and get this whole thing on my little crappy three g Motorola phone phone. And I remember I posted online, and Gawker picks it up. I gave my email. You know, my headline I put on my blog was, you know, chase where the relationship is that Go after yourself, you know? And it was It just got tons of play. And then Gawker picked it up. It went everywhere. Totally viral. So it’s one of those things here, just like, you know, this was in 2000 and two. It’s 12 years later. How the hell can you assume that nothing is being that you’re not being recorded? You know, I I remember blowing I sneezed a couple weeks ago and, uh ah, not to get too graphic here, but I needed a tissue big time after I was done, anything. I remember going through my pockets looking for desperate, looking for tissue and looking around making sure I wasn’t on camera somewhere that someone didn’t grab that. Give me the next viral sensation, you know? I mean, I went God, I went to high school with eight blocks from here, right? If the amount of cameras that are in Lincoln Center today Were there in 1919, 90 be having this conversation entirely, I’d be having this conversation behind bulletproof himself. And, um, yeah, so you know, you’d be you’d be talking to You have to get special clearance to visit me, probably at the Supermax in Colorado. So, you know, it’s it’s one of those things that you’re just like my kid, who’s who’s almost two years old now is going to grow up with absolutely no expectation of privacy the same way that we grew up with an expectation of privacy. And I’m thankful for that because she will make a lot less stupid moves. You know? I mean, God, the things that I thought, you know, in, in, in, in high school I thought the stupidest in the world. Thank God there wasn’t a way for me to broadcast that to the world in real time. Jeez, thank God

[00:25:59.64] spk_1:
creating these zombie loyalists. And we’ve got to change some. We’ve got to change culture and thinking and reward systems. Let’s go back to the cost of all this. Why is this a better investment than trying to just focus on new donors?

[00:27:20.74] spk_0:
I love I love this analogy and I’ll give you a fun analogy. Let’s look at a bar and there’s a very cute girl across the across the park and she catches my eye catcher. I go up to her go. You know you don’t know me. I am amazing in bed. You should finish your drink right now. Come home. Let’s get it on. I’m gonna impress. I’m that good chance that she’s gonna throw a drink in my face. Go back talking to her friends. I’ve done a lot of research on this. That’s probably understand. Now let’s assume let’s assume an alternate world. I’m sitting there on my phone. I’m just playing like, you know, some words with friends like that. And, uh, she’s over there talking to her friends, one of her friends. Holy crap. That’s Peter. I think that’s Peter Shankman. I’ve heard him speak. He’s in this fantasy world. I’m single, too. He’s I think he’s single and he’s having this amazing guy. I know he has a cat you have. You should totally go talk to him. At the very least, I’m getting this girl’s number. That’s PR. Okay. And what do we trust? More me with my, you know, fancy suit collar Going over the seventies, leaders did. Hi, I’m amazing. Or the girl saying, Hey, we’ve been friends since third grade. I’m recommending that guy. You should trust me on this, You know, obviously that that’s where, uh, good customer service comes into play. And that’s where corporate culture comes into play. Because if I have a great experience with you and at your company, I’m going to tell my friend when they’re looking and I will stake my personal reputation on it. And there’s nothing stronger than that.

[00:27:26.19] spk_1:
And these are the people who want to breed

[00:27:27.55] spk_0:
as it’s stronger than advertising stronger the marketing

[00:27:30.74] spk_1:
and they’re gonna share. People

[00:27:55.94] spk_0:
want to share that. I think about the Internet runs on two things. It runs on drama, drama and bragging or bragging and drama. And if you if you need any proof of that, you know, go and look at all the hashtags with crap that’s happened, you know, bad customer service, bad, whatever. But then look at all the good Hashtags. You know, when our flight’s delayed for three hours and we lose our seat. Oh my God, I hate this airline. Worst airline ever. But when we get upgraded right hashtag first class bitches or whatever it is, you know something stupid like that and the whole because we love to share. It’s only a great experience if we can tell the world, and it’s only a bad experience if we can make everyone else miserable about it as well.

[00:28:54.94] spk_2:
It’s time for Tony’s take two Thank you for the year. It’s been another the second in a row up and down years. But you can count on nonprofit radio, and I know I can count on you are consistent, loyal podcast listeners year after year or some of you. Some of you knew this year. Welcome. Whether you knew this year whether you’ve been with us for a long time. I mean, this is show # 570. So, have you been with us 570 shows? Um, that’s a long time that I’ve been here. I’ve been here 570, however long. Thank you. Thanks for being with us. Yeah. And up and down year yet again. But, you know, you can count on nonprofit radio,

[00:29:00.74] spk_1:
and I know I can count on you.

[00:29:31.84] spk_2:
That’s the That’s the bargain. So thank you. Thanks for the year. We’re gonna be off next week and then and then back in early January. Thanks very much. So glad to have you with me. That is, tony. Stick to We’ve got Boo Koo, but loads more time for the classic zombie loyalists.

[00:29:41.34] spk_1:
Peter, you have a golden rule of social media that that a good number of customers like to share and people are going to keep doing it.

[00:31:15.14] spk_0:
People will always share again. It goes back to the concept that if you create great stuff, people want to share it because people like to be associated with good things. If you create bad stuff and buy stuff, I can meet, I mean anything from a bad experience. Too bad content. People not only won’t share that, but we go out of their way to tell people how terrible you are. Um, you know, how many times have you seen companies fail horribly? Uh, you know, after major disasters when companies are tweeting, um, you know, completely unrelated things after after a random school shooting? Uh, no. It was after the shooting at the theater in Aurora, Colorado at the Dark Knight. Um, the NRA tweets. Hey, shooters, what’s your plans for this weekend? You know, and I’m just going, really, you know, but And of course, the thing was, the thing was retweeted millions of times, you know, with the sort of shame on the NRA. So we we’re a society. Like I said earlier, that loves to share when when great things happen to us, but loves to tell the world when we’re miserable, because we’re only truly miserable. We make everyone else miserable right now, Um, it’s funny you mentioned, uh, generosity series, Uh, the one of my favorite stories, which goes to sort of a bigger picture of culture. And, um, somehow when you’re just doing your job because that’s what you’re supposed to do your job. But you don’t realize there are ways to get around that. I I listened to your podcast, among others, when I’m running through Central Park, Um, and more like, if you know, my body type more like lumbering through Central Park. But I get there. I’m an iron man. I have, I have that. And so I go through Central Park and it’s super early in the morning cause I usually have meetings and I don’t run fast. Um, I run like I really don’t run fast, but But as I’m running, But

[00:31:24.23] spk_1:
let’s give you the credit. You have done a bunch of iron man. I have try.

[00:33:28.64] spk_0:
I do. I do it, you know, my mother tells me that I just have very poor judgment in terms of what sports I should do. But, um, on the flip side. I’m also a skydiver, which is with my weight is awesome. Yeah, I fall better than anyone. Um but so I’m running through central park. Last year it was February, February of of 13 and 14 of this year and it was probably about 4. 45 in the morning because I had a an eight. AM meeting. I had to do 10 miles. So 45 in the morning, I’m running about but around 19, 79th, 80th Street on the east side, in the park and a cop pulls me over and I said, What are you doing? I look at him, you know, I’m wearing black spandex. I have a hat. It’s five degrees. I don’t like what I’m playing checkers, you know? But, you know, I’m like, I’m running and he’s like, Okay, can you stop running? I’m like, Okay, because they give the park’s closed like, No, it’s not like I’m in it. Look around. There are other people who know part does nobody else exam. I’m like, he’s like, Do you have any idea on you? I’m like, No, I’m running. He goes, What’s your name? I’m like, seriously, like I’m writing you a summons. I’m like you’re writing me a summons for exercising. I just want to clarify that you’re writing music, and sure enough, I wrote me a summons for exercising in Central Park before it opened. The charge was breaking the violating curfew. You know, I’m like I get the concept of the curfew is to keep people out after two a.m. It’s not to prevent them going in early to exercise, to be healthy. I’m like, I’m not carrying, you know, a six pack. I’m not drinking a big gulp. I’m not smoking. I’m you know, I’m doing something healthy, and you’re writing me a summons for it. Um, and I said, you know, I’m gonna have a field day with this. I said I I kind of have some fathers. There’s gonna be a lot of fun. I’m not, You know, I know you’re just doing your job, sir, even though you have the discretion not to, but Okay, so I go back home, take a picture of my ticket, I email it to a friend of mine in New York Post. You know, front page, New York Post. Next day. No running from this ticket. You know for that. Great New York Times covered it. Runner’s world covered. I mean, I went everywhere. Gawker covered it, you know? And And my whole thing was just like, Dude, you have to scratch. Look at me. You know, I’m not I’m not even going super fast, for God’s sake. I’m just I’m just trying to exercise here, you know? And of course, I went to court, and I beat it. But how much money they cost the city for me to go to court, fight this thing? You know, every employee you have to give your employees the power of discretion. The power of empathy to make their own decisions. If you go by the book, bad things will happen.

[00:33:36.14] spk_1:
And again, small shops. So much easier to do. Flat line, flat organizations.

[00:35:10.94] spk_0:
I work with a non profit um, animal rescue nonprofit. Um, a friend of mine was a skydiver and shot him out. No, I can’t, but but there’s a friend of mine was a skydiver, and she was killed in a base jump several years ago. And her husband asked to donate in her memory to this non profit. So I said, I’m a check and about three months later, I get a coffee table book in the mail. And I was living by myself at the time. I didn’t own a coffee table. It was more money to spend on my flat screen. And I remember I call I look at this coffee table book. I throw it, I throw in the corner. I look at it over the next couple of days and pisces me off. And how much How much of my donation did it cost to print? Well, and produce this book to me, And so I called them up. Well, sir, we believe most of our donors are older and probably refer to get a print version as opposed to, like digital. You know where they throw it away and like, you don’t throw digitally, but okay, um, I’m like So So you’ve asked your you’ve done surveys and you’ve asked, you know, we just assume that most of them are older. I’m like, Okay, So I opened my mouth, wound up joining the board, and I spent the next year interviewing customers, interviewing every current and past donor about how they like to get their information and shock of shocks, 94% said online. And so over the following year, we launched Facebook page, Twitter page, uh, Flickr account, YouTube, everything. Ps the following. After that, donations went up 37% in one year In that economy is right around 809. Donations went up 37% in one year, and they saved over $500,000 in printing, mailing and reproduction. Imagine going to your boss. Hey, boss. Revenues up 37%. And we saved a half million dollars. You’re gonna buy a really good beer. You know, all they had to do was listen to their audience, be relevant to the audience you have, and they will tell you what they want. We have tons

[00:35:17.89] spk_1:
of tools for segmentation. My God, you’ve got to listen to what segment that you want to. People want to

[00:37:33.83] spk_0:
be in. You know, someone? Someone asked me that they show what? What’s the best? I knew nothing about the company. What’s the best, uh, social media outlet for me to be on? Should be on Twitter should be on Facebook. I said, I’ll answer that question. If you can answer this this this question to ask you is my favorite type of cheese Gouda or the number six? Yeah, they say, I understand that’s not a real question like neither is yours. Like I can’t tell you where the best place to be your audience can. I said, Go ask your audience. Believe me, they will tell you there’s a gas station in the Midwest. Come and go. Um, I just love the name K U M and G O come and go and they’re tackling the book you can read more about. Their tagline is always something extra. I mean, come on, the jokes just write themselves, for God’s sake. But they don’t take themselves too safe. Really love that Come And just knowing the name of the company gas station. And, um, you know, I remember there in Iowa and I went to visit a friend in Iowa and I was like, You got to get a photo of me in front of come and go inside. And the beauty of this is that some of their employees actually look at their customers when they’re on their phones and the stories go. You know what do use Twitter or Facebook? And they say Oh, yeah, And they record that information and they know it. God, customers will give you so much info if you just ask them, because then they feel invested. They feel invested in your company. They feel like they that you took the time to listen to their nonprofit request for their their their questions. And they feel like they did for Harrow. Every month we have a one question Harrow survey, you know, harrowing question survey. And it was like 1000 people respond, and I spent the entire weekend emailing Everyone responded, thanking them personally took my entire weekend. But it was great, because what wound up happening is that, you know, if we took their advice and launched on Monday with the new thing, they go, Oh, my God. Howard did this. They took my advice. Well, yeah, it was your advice to 800 other people’s advice, but we took it and they’d be like, Oh, my God, this is it. And it just it just made them so much more loyal. And they tell hundreds and hundreds and hundreds of people we get I mean, there were days like there are days where I was in Temple one morning, the Garment Center synagogue and my phone. I feel my phone getting really hot in my pocket, which is not normal, and I’m starting to hurt and I look at it. It’s almost on fire. It had frozen because we were mentioned in Seth Godin’s morning blog, and at that time I was getting emails. Every time we get a new subscriber and the phone is actually frozen and was locked and and was like overheating, I take out the battery and reset the entire phone because we just got so many new like 14,000 subscribers in, like, three hours. It’s obscene. Obscene,

[00:37:35.25] spk_1:
you say. Excuse me? You say, uh, that customer service is the new advertising marketing NPR?

[00:40:23.41] spk_0:
Yeah, it really is well again. You know, if we’re moving into that world where so imagine a lava lamp and I love that. I can use this analogy. Imagine a lava lamp. Lava lamp has water, oil and heat source. Right heat source heats the oil. The oil flows through the water. It makes pretty colors. I’ve heard it looks really good when you’re high. Now I’ve heard now imagine if Crystal’s imagine if you are, uh, everyone you meet in your network, okay, is a drop of oil. The water is your network. And what is your world? Everyone you meet in your network from from the guy you’re sitting doing the radio interview with to the guy who serves you ice cream with local deli to the guy who does your dry cleaning to your girlfriend to your wife, too, at the same time to your kid’s second grade teacher to your second grade teacher years ago. Everyone you meet is in your network, you know, right now, when Facebook first started, I would see the same weight from a kid with junior high school with his posted at the same weight as like my current girlfriend, Which is ridiculous. I don’t need to know about everything my friend from junior high schools do. We have to talk to the kid. In 15 years, Facebook’s gotten a lot smarter as Google. Now I see the people I communicate with the most, okay, and if I if I reach out and communicate with new people, they start rising in my feet and my stream. If I don’t they fall. It’s just like a lava lamp. Every person you connect with is a drop of oil. The heat source at the bottom that’s rising. Raising or lowering those drops of oil is relevance. So if you imagine the heat sources relevance and the more I interact with someone, the more the higher they go in my network. And the more I see of them, the more trust level there is. When I’m at a bar and I meet someone at a restaurant or conference, I meet someone. I don’t need to, um, connect them. I don’t need to go on Facebook and friend requested, you know, awkward friend. Requesting is when you stop and think. The last time I friend requested some of the real world was second grade. Will you be my friend? My daughter is doing that because, you know, she goes into like, the cat. Will you be my friend like honey? The cat doesn’t wanna be here, but you know it’s this awkward thing. Who the hell friend request someone anymore? If I’m if I’m hanging out with you to bar and we connect again and we talk and we go out to dinner and we’re having a good time with friends. I don’t need to first request that you, you know, that’s going away Friending following liking and fanning is all going away. What will interact is the actual connection. So if I meet with you and I have a good time with you and we talk again if I use your business, if I go to your non profit, if I donate if I volunteer or whatever the network knows that the more I do that, the more interact with you. The more you have the right to market to me and the more you will be at the top of my stream and the more I will see information about you, the less I will have to, uh, search for you. But if you do something stupid or were no longer friends, yeah, you’re going to fade and unfriend, you just disappear. Unfriending is also awkward. I dated a woman we broke up. It was nine months after we broke up. There was one other friend, the other one, because it’s just awkward. So I woke up in front of me anyway. But you know the concept of not having to do that, just, you know? Okay, I haven’t talked to in a while. I don’t see your posts anymore. It’s the real world. That’s how it should be.

[00:40:24.73] spk_1:
And if you’re not feeding zombie loyalists, they can start to defect questions. So I want to I want to spend a little time on. If you’re

[00:41:11.71] spk_0:
not talking to them, giving them what they want talking about their information, helping them out, they will gladly go somewhere else to someone who is. You know, if I have a great experience in the restaurant every week for three years and then all of a sudden over time, I’m noticing less and less that restaurants doing less and less to take care of me, you know, and maybe management to change. And I don’t feel that, you know, I’m ripe for being infected by another company. I’m right for someone else to come see. You know, Peter, Because if I tweet something like, Wow, I can’t believe I have to wait 40 minutes for a table that didn’t used to be like that. If someone else is smart restaurant, they’re following me. And they’re gonna get you know there’s no way. No way over here. Why don’t you come to black storms will give you a free drink you know, you know, and that right there, that’s the first sign of infection, and I might become infected by another by another. Company becomes a lot less for them.

[00:41:22.81] spk_1:
And so let’s let’s take. You have a lot of good examples. Let’s take a one on one situation. How can we start to cure that? The simple act of realizing

[00:41:42.21] spk_0:
following your customer’s understanding when they’re not happy and fixing the situation before it escalates. You know you can contain a small out Brett. A small outbreak small viral outbreak. You can contain that by getting the right people finding out what the problem is getting into one room, fixing their problems, healing them.

[00:41:42.84] spk_1:
You have a good united story. Back when it was Continental,

[00:42:40.50] spk_0:
I was a frequent flyer and booked a trip to Paris, and it was very angry because they charged me $400 and looking for you. Remember what it was and I called the CEO just just for the hell of it. I’m like, I’m gonna I’m gonna write a letter or an email. This was before Social wrote an email to the CEO and like this is ridiculous. I’m freaking tired, huh? And, like, 30 minutes on my phone rings. Hello? Peter, can you please hold for Larry Kellner, CEO of Cotton Airlines? I’m like crap, you know, and the guy gets on the phone. He’s like, Peter, How you doing? How you doing? Sorry, Clinton. These fees, their new, um, we send them a note, I’m guessing it and see it. We’re gonna waive them for you. But if you have any more problems, you know, feel free to call me and I end up the phone for the next 40 minutes, sort of staring at it like Holy crab Larry killed or the CEO of United. Everyone just called me and talk to me, and it was like it was like, God coming down and say you now have the power to levitate your cat. It was just ridiculous. And so, you know, I have been faithful to Continental and now united ever since, and and they continue to treat me with respect and and do great things, and they’re they’re improving. They’re getting a lot of crap over the past several years, and they really are starting to improve. It’s nice to see

[00:42:52.50] spk_1:
And not only, of course, your own loyalty. But

[00:42:54.41] spk_0:
you’re my God.

[00:42:55.11] spk_1:
How zombie loyalist for them And how many times how much it’s

[00:42:58.83] spk_0:
unquantifiable qualified. Dr. Drag, So many friends to united. I’ve made so many friends. Uh, my father, you know, uh, he only flies united now, which means he only drag drag my mom Only in United only drag my wife in United States. There’s a lot of a lot of work that way. Yeah.

[00:43:22.80] spk_1:
Are we gonna go away for a couple of minutes when we come back? Of course, Peter. And I’m gonna keep talking about his book Comes out in January. Zombie loyalists. You have some examples of zombie loyalist leaving and mass like dominoes. Netflix. They’re both They’re both in the book. So it’s so one leaving. If you know, if you’re not starting to cure one leaving,

[00:43:59.20] spk_0:
and then that’s the thing. You know that it will expand the internet with the hashtag everything like that. You know, it doesn’t take a long time. Um, for those things to sort of blow up in your face and, uh, you know, the end of the day, everyone say, Oh, you know Twitter is responsible for for us losing. No, they’re not. You’re responsible for you losing, you know, And And if your product isn’t great and you’re your actions, don’t speak well of who you are. Then there’s no reason your customers should stay with you, you know? And it was so social Media is really hurting us. I know you’re hurting yourself. The only difference is that social media makes it easier for the world to know about.

[00:44:06.14] spk_1:
They’re just telling the story. Yeah, dominoes and Netflix are good examples because they got back, they took responsibility and

[00:44:38.89] spk_0:
they both owned the dominoes, came out and said, You know what? You’re right. Our pizza. We do have a problem. We’re gonna fix this. And they spent millions fixing it. And sure enough, they’re back with a vengeance. Now I’m I’m maybe not even ordered them every once in a while and I live in New York City. That’s that’s a That’s a sacrilege. But, you know, I have the app on my phone from overseas, traveling somewhere I’ll be showing or whatever. And you know what? You’re gonna get it 11. 30 at night when your flight is delayed. You land down. Um, which reminds me I’d probably go exercise. On the flip side, you look at something like Netflix. They they also were screwing up, you know, They were losing their trying to switch between the two. They came up with a new name and everyone’s like, gross public man. And so and again you’re watching the same thing happened with uber right now would be really interesting to see if they’re able to repair themselves.

[00:44:55.39] spk_1:
Listening is important. Both both those. Both those two examples. They listen to their

[00:46:54.48] spk_0:
customers. I think there’s a problem with listening because everyone’s been saying, Listen, listen, listen for months and years and years and years now, But, you know, no one ever says that you have to do more than just listen. You have to listen actually follow up. It’s one thing to listen, you know, I use example, my wife I can sit there and listen to her for hours, you know? But if I don’t actually say anything back, she’s gonna smack me, you know, and go to the other room. And so you really have to. It’s a two way street. Listening is great, but you gotta respond and look, I’ll take it a step further. I was like, Oh, Twitter is so great because someone was complaining on Twitter and we went online, and we we saw the complaint that we fixed the problem and, yeah, how about if the problem don’t exist in the first place? You know, because the great thing about Twitter is that yeah, people complain on Twitter, the bad thing about it is they’re complaining about you on Twitter. So it’s like, What if the problem didn’t exist in the first place? What if What if you empowered your front desk clerk to fix the problem so that I didn’t have to tweet? Hurts is my favorite story about all this? Uh, I used to rent from Hertz religiously. Um, and then I went to, uh, Phoenix Sky Harbor Airport this past April, And I gave it. I was giving a speech, and I go and I my name is supposed to be on the board, you know? So I can go out to my car and it wasn’t it’s okay. It happens. I got upstairs. I wait 40 minutes on the v. line. um, after 40 minutes, they finally say? You know, there’s a, uh, only one guy here. A lot of people might have a better chance to go up to the regular line, like Okay. You probably have told us that a little earlier. Go to the regular line. Spent 45 minutes waiting. The regular line, it’s now been. Are you tweeting while this is happening? Well, I had enough. I was actually not only tweeting I had enough time to create a meme that should give you some idea of how long I was online with myself. And I was okay. Enough time. I mean, I get to the counter how I can help you. Yeah, I was downstairs the V i. P does, and they told me Oh, you’re very preservationist downstairs like, Yeah. Okay. Let’s let’s put a pin in that, um They just sent me up here, like right? They have to help you. Well, it’s not really they You guys are the same company. I mean, I can see the reservation on the screen. You you can help me. Sorry, sir, I can’t help. You have to get the V i p. Next. Like you just next to me. Okay, so if you know anything about Sky Harbor Airport in Phoenix. Um, all of the rental car company in the same place. So I walked 50 ft. It’s a

[00:46:57.76] spk_1:
bus, takes you to the big the Big pavilion, where they’re all

[00:48:53.37] spk_0:
next to each. I walked 50 ft from the cesspool of filth and depravity that was hurt to the the wonderful Zen Garden of Tranquility that was Avis. And in four minutes, I had a nicer, cheaper or nicer, less expensive car given to me a woman named Phyllis, who was 66 and moved to Phoenix from Detroit with her husband for his asthma. I knew this because she told me, um, she smiled at me. She brought her manager out and said, that’s another refugee from Hertz and I said, This happens a lot. They’re like, Yep, I’m like, Wow, you think they have done something about that? And so on the way out in Avis, um, I I thank them. I walked past her as I shoot them. This, you know, sort of look at the look of the beast. I get my Avis car to drive in my hotel. Once I get my hotel, I write a wonderful blog post about my experience called Peter and Hurts and the terrible, Horrible No book. Good, really bad customer experience. Once you have a kid, you find rewriting titles about your blog post that has to do with kids books. Um, I do not like hurt Sam. I am. And and, uh, I included in this blog post the five things I’d rather do than ever, uh, rent from Hertz again. I think number three was was ride a razor blade bus through a lemon juice waterfall. Um, with just, you know, and so. But, of course, the next day hurts reaches out to me. I’m Shannon. Well, this is the head of North American customer service. So your bike I’m like, they’re like, you know, we’d love to have Nick No. Like, you’re not going to fix the problem. Number one of the Navy’s car. I’m never going back to Hertz number two. There are five people. Yesterday five people interacted with all of whom had the chance to save me and keep me as a customer for life. A customer who had been so happy and I would have loved you. five people blew it so don’t waste your time trying to convert me back. You’re not going to. What you want to do is spend some of that energy retraining your staff to have empathy and to give them the ability and the empowerment to fix my problem when it happens. Because five people it takes every single employee to keep your company running. It takes one to kill it. Yeah, PS Avis reached out, um, to thank me personally. And, uh, I am now just this ridiculously huge, loyal fan of Avis and always will be.

[00:49:02.47] spk_1:
You have a pretty touching story about when you worked at a yogurt shop. Really? You’re really young? Um, we have a couple of minutes to

[00:50:39.26] spk_0:
tell that. Tell that story that was on the East Side, which again is yet another reason why I live on the West Side. Nothing good ever happens on Manhattan’s east Side. So I was I was working, and I can’t believe it’s yogurt, which was a store that I think back in the I c b y. No, no TCB. Why was the country’s best yoga The countries I c b i y was a poor? I can’t believe it’s yogurt I can’t believe it’s not. You can’t live yogurt. It was a poor attempt to capitalize on that. And I’m working at this store, and I go in every day and make the yoga to clean the floors. I do. You know, the typical high school job. And, uh, it was during the summer and thousands of people walking by, I think, like 2nd Avenue or something. And there were these brass poles that hung from, you know, there was an awning, right? That’s something that they’re never the brass poles that held the awning up and they were dirty as hell, right? I’m sure they’ve never been polished ever. And I found some. I found some brass polish in the back all the way back in the back. And one afternoon I went outside and I started polishing the polls. My logic was, if the polls were shining and people saw them, maybe they come into the store. Maybe they want to, you know, buy more screenplays. And the manager came out. What the hell are you doing? I told them what I thought. I don’t pay you to think. Get inside. You know, I’m like there’s no customers in there, like, Okay, I’ll make sure the yogurt still pumping it full blast. And I quit. I just quit that job. I mean, I couldn’t even begin to understand why someone would invest. I mean, do you own a franchise by 50 grand to at least to buy that franchise? Why wouldn’t he invest in the two seconds it took a little elbow grease to make the poles clean? That might bring in more customers. What the hell? You know, But

[00:50:40.04] spk_1:
you’re not paid to think

[00:50:49.76] spk_0:
you’re not paid to think my favorite line. Yeah, um, I I just I encourage if any kids are listening to teenagers. If you if you boss says that to you, quit, quit. I will hire you. Just quit. It’s probably the worst thing in the world that you could possibly do because you have customers who you have customers who every day can be helped by people who are paid to think. And that’s the ones you want to hire.

[00:51:00.56] spk_1:
We gotta wrap up. Tell me what you love about the work you do.

[00:51:44.76] spk_0:
I get paid to talk. I mean, my God, this is the same stuff I used to get in trouble for in high school, but on a bigger picture. What I really love about it is being able to open someone’s eyes and have them come back to me. Um, I run a series of masterminds called shank mines Business masterminds shank mines dot com their day long seminars all around the country. And I had someone come to me and, you know, I took your advice about X y Z and I started listening a little more. And I just got the largest retainer client I’ve ever had in my life by a factor of four. She goes, and I just can’t even thank you never sent me a gorgeous bottle of tequila like I can’t even thank you enough. Oh, my God. Being able to help people, you know, at the end of the day, we’re I’ve yet to find another planet suitable for life. I’m looking So we’re all in this together. And if that’s the case, you know, why wouldn’t we want to help people get a little bit more? You know, there really isn’t a need to be, as do she. As as we are as a society, we could probably be a little nicer to each other, and you’d be surprised that will help.

[00:51:54.56] spk_1:
The book is Zombie Loyalists. It’s published by Pal Grave. MacMillan comes out in January. You’ll find Peter at shankman dot com and on Twitter at Peter Shankman. Peter, thank you so much pleasure as Amanda. Oh, thank you

[00:53:05.15] spk_2:
Next week, As I said, No show you’ll have an extra hour. Have fun, have fun with your extra our next week, and we’ll be back on January 3rd. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications, PR and content for nonprofits. Your story is their mission. Turn hyphen two dot c o. A creative producer is Claire Meyerhoff. The shows Social Media is by Susan Chavez Marc Silverman is our Web guy, and this music is by Scott Stein. Thank you for that affirmation. Scotty. Be with me next week for nonprofit radio. Big nonprofit ideas for the other 95 Go out and be great.

Nonprofit Radio for December 13, 2021: Is A Social Enterprise For You?

My Guest:

Tamra Ryan: Is A Social Enterprise For You?

What are these and how do you decide whether to take one on—or even consider it—at your nonprofit? What kinds of businesses lend themselves to social enterprise and how do you structure the relationship? Tamra Ryan makes sense of it all. She’s CEO of Women’s Bean Project.

 

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Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.
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[00:01:55.34] spk_1:
Hello and welcome to Tony-Martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d suffer with Spagnolo arthropod earthy If you disjointed me with the idea that you missed this week’s show is a social enterprise for you. What are these And how do you decide whether to take one on or even consider it at your non profit what kinds of businesses lend themselves to social enterprise and how do you structure the relationship? Tamara Ryan makes sense of it all. She’s ceo of women’s Bean project. tony state too. Congratulations core africa. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o here is, is a social enterprise for you. It’s a pleasure to welcome Tamara Ryan to nonprofit radio She is Ceo of women’s Bean project, a social enterprise that provides transitional employment to women attempting to break the cycle of chronic unemployment and poverty while operating a food manufacturing business. She’s a former partner and board member for social venture partners. Denver and currently serves as part time interim ceo for the social enterprise alliance. She’s at Tamara Ryan and the enterprise is at women’s bean project dot com. Tamara, welcome to nonprofit radio

[00:01:57.34] spk_0:
it’s great to be here.

[00:02:01.24] spk_1:
It’s a pleasure. Pleasure to have you. Yeah. Why don’t you first explain what women’s bean project is all about because it’s an example of what you and I are going to talk about for a while

[00:03:01.04] spk_0:
Okay We are a food manufacturing business. We started with Bean Soup in 1989 and that’s where our name comes from. But today we have 50 different food products that we sell all across the country. What makes us different is that we employ women who are chronically unemployed. So a typical woman we hire hasn’t had a job longer than a year in her lifetime. Though the average age is 38. They come and work for us as for a full time job for 6 to 9 months. And during the time they’re with us, we teach basic job readiness skills and then we also in 30% of her paid time. We teach her life skills, we teach problem solving and goal setting and budgeting and planning and organizing. And so this whole thing is her job for these 6 to 9 months at the end she graduates our program and moves on to mainstream employment in the community. So we’re kind of two businesses were running a food manufacturing business and a human services business,

[00:03:18.54] spk_1:
which is exactly what the type of model we’ll be talking about. What I admire about that I found very interesting is that you said it. Um Well you’re used to saying it, but I want to call it out for 30% of their paid time. The women’s paid time is not spent working. It’s spent learning the soft skills of employment.

[00:03:39.04] spk_0:
Yeah, we call it the huge job. The y ou job. So she has the being job and she has the huge job and she’s paid for all of it. Mhm.

[00:03:45.74] spk_1:
Uh Well, so I see the value and you’ve had uh you had a lot of success with folks. Women having jobs longer than a year after they’ve they’ve I’m going to say graduated, but

[00:03:56.70] spk_0:
we use that term also the

[00:03:59.88] spk_1:
project.

[00:04:32.34] spk_0:
Yes. So we track them at 6, 12, 18 and 24 months. We track them. What makes it easier to track them is that we pay them for those check ins. So we pay them $50 to check in at six and 12 months, $75 at 18 months and 100 bucks. Said two years to check in with us. And what we found that is that at a year uh 95 plus percent of the women are still employed. And I think what makes what’s significant about that is that again, the women we hire haven’t had a job longer than a year in their lifetime before they come to us. So what we really want to know is are we setting them helping them on a path for long term employment? You know, being able to sustain that employment.

[00:04:58.54] spk_1:
So what kinds of nonprofits are our listeners are all in small and mid sized nonprofits. So I think this is an ideal subject for listeners. What what types of nonprofits could consider having a social enterprise as part of their part of their work.

[00:06:06.44] spk_0:
I think organizations that are serving people who are using, you know, by necessity on public benefits and really who for a variety of reasons, whether it’s because of a felony background or it’s because of uh, low education levels or because of the history of addiction, you know, a variety of things that get in the way of, of getting and keeping employment. And so if you’re serving those people anyway, one way to help them, in addition to helping them build their foundation of, of soft skills is to employ them in a social enterprise. So that’s just one way that a social enterprises run. But it’s, you know, it as adults, we learn by doing so. It’s a really great way to work with the people that you’re working with anyway. Two create a business where you’re helping those same people in the long run be able to be successful,

[00:06:19.34] spk_1:
you’re a partner of social venture partners in Denver. What, what did you look for when you were investing in these types of organizations?

[00:07:07.94] spk_0:
Well, we specifically in Spp Denver, we’re looking for small organizations that both needed some funding, but also needed some technical assistance. And the reality is that we don’t, if you’re, if you’re running a human services organization, you don’t necessarily have somebody on staff that has the skills to launch a business, for instance, you know, even to do the market research to figure out what kind of business that might be um have the operational skills, you’re you’re running a human services business but you’re not necessarily running, say in our case of food manufacturing business. And so Spp really looked for organizations that needed the skill set of our partners and also could benefit from the funding that we were providing that. And then SVP’s model the funding and the technical assistance go hand in hand.

[00:07:42.74] spk_1:
So what what about organizations that uh don’t have the expertise that they need? Uh Let’s let’s let’s assume most of our listeners are not in Denver, so they don’t have access to S. V. P. Denver. What how can they how can they fill that void? And even just start like you’re saying like initial market research, how do they know where to get, how to get started?

[00:09:46.04] spk_0:
Well, every nonprofit has a board and I would venture to say that most nonprofits have business people on their board. So there are a lot of resources either through board members or through people that board members know. The one great thing that I’ve observed and I didn’t come from the nonprofit um world for my entire career. I was in the private sector before. And what I love about being in the nonprofit world is that there are lots of people who want to help and and just need to be need, they need help knowing what you need. And so I’ve been I’ve seen lots of ways we’ve been able to engage, uh, professionals in it for us, in, in food manufacturing, um, who have expertise that we need to sit on fair business development committee and help us look at uh, new product ideas. And I think that same concept could easily be applied to any organization that’s trying to figure out what kind of business they might run because that’s the key. You could decide to start a business, but it still has to be a viable business. The just just starting a business, you’re not going to get the halo effect of, you know, you’re doing it as, as a non profit and therefore it’s going to succeed. All the same market factors come into play that do for any business. And so you, you really do have to still find a viable business. That makes sense. That is needed. That you can price appropriately. Um, one of the things about the research for social enterprises or whether or not consumers are going to buy from a social enterprise, whether it’s a product or service. One of the statistics is that all other things being equal? So in other words, quality, price, etcetera. People more and more have a tendency to purchase products and services from a mission based organization or a mission based company. But the most important part of that statement is all other things, other things equal. All

[00:09:54.18] spk_1:
things being equal.

[00:09:55.24] spk_0:
Yes,

[00:09:58.54] spk_1:
you have to, you have to be able to compete with your private enter, strictly private enterprise, market driven, profit driven competitors.

[00:11:20.24] spk_0:
Yeah. You have to be able to compete. And yet at the same time, you also need to figure out what your competitive advantages yourself. So for instance, in our case we are able to, uh, we’re right now in the holiday season, you know, september to december for women’s bean project, 70% of our sales are made. So, you know, we really peaked during this time of year. One of our competitive advantages is we can bring in volunteers to help us say pack boxes or help us, you know, get shipments out the door or help with with prep of product. And that’s something that is a bit of a competitive advantage because if we were just, you know, in the, in the private sector running a regular food manufacturing operation, we really, I don’t think we could, you know, look somebody in the eye and get and get that kind of assistance. But for us it’s a way to engage donors to get people really invested, get new customers. You know, there are so many ways that, that bringing people from the community in to help us is advantageous not just to get the work done, but to get additional support for our organization.

[00:11:49.34] spk_1:
So you’ve opened yourself up to a whole new set of metrics as, as having a social enterprise and we’re gonna get to what, what the relationship is between the company and and a nonprofit or, you know, how that could be set up by different, by different organizations. But you’ve, you’ve got to measure, you’ve got to measure the company’s profit and the company’s output and productivity, productivity per employee hour or you know, whatever, you know, the, the key metrics for the business are as well as the social outcomes of of your graduates and your employee members and your and your graduates.

[00:12:34.94] spk_0:
It’s a, you know, I joke sometimes it’s a horrible way to run a business, right? Because we intentionally everyday hire women, we don’t know if they’re going to come to work every day. I mean that’s part of their barriers to employment and we work with them and they help, we help them become great employees and as soon as they become great employees, we let them go off and become somebody else’s great employee and we start all over again. Uh, and it’s so it’s super inefficient and we also over higher. So if we were a for profit company and we were trying to be as efficient as possible and, you know, squeeze every penny out of our margin. We absolutely would not hire as many women as we do. But that’s not the point. The point for us is to use our business to advance our mission. So we hire as many women as possible as we can justify based on what our sales are going to be.

[00:13:09.24] spk_1:
So what are some of the things that nonprofits need to think about, uh, beyond all right. What’s a, what’s a viable business? What other, what other factors are important?

[00:13:16.04] spk_0:
Well, maybe the biggest thing is it’s hard. And I joke sometimes with our team, like if this were easy, everybody do it. Do

[00:13:20.79] spk_1:
we really want to do it? Do we really want to do it as an important threshold?

[00:15:30.84] spk_0:
Yeah, absolutely. And it’s hard because you have to have the ability to entertain two opposing ideas at the same time, right? We need to run an efficient manufacturing business and we also need to deliver on our mission. And those two things actually often don’t go together very well. And so being able to both entertain those ideas and acknowledge that perhaps today the business wins. Maybe we, um, the women instead of, um, Spending 30% of today’s time in a class say financial literacy, they’re on the production floor for the whole day because we have a lot of work to do, But tomorrow maybe it’s the, it’s reversed and they’re spending the whole day in some sort of training and not making any product at all. And so our job is every day to, to balance that out. And so that’s, I think one of the hardest things is, uh, is having that ability to understand that if not for the mission, your business doesn’t really exist, but yet your, your business has to be profitable in order for to make sense and contribute to the mission and, and that, you know, balancing act, you know, is a constant. So that’s part of what makes it hard. I would say another thing is that you, you still have to find all the other, I mentioned this before, All the other market forces still prevail. So if you have a product that nobody wants to buy, you’re not going to have a successful business and there’s no amount of mission that’s going to forgive that at least not in the long term. And you know, at this point, women’s bean project is 32 years old and I think in a lot of ways we’ve just been lucky. There was no initial market research that said, you know, being super. I think that’s the key to success. Nobody, nobody did any kind of research at the beginning. Our founder just noticed she was in her late fifties, she’s gone back to school to get her master’s degree in social work and she noticed a lot of her friends who were around her age were eating bean soup for health reasons. And so she invested $500 of her own money and bought beans and put two women to work making 10 bean soup. The crazy thing is that’s still 32 years later, our best selling product,

[00:16:45.14] spk_1:
it’s time for a break. Turn to communications. Do you have all the time. You need to do all the writing. You need to do social posts, blog posts, newsletters, the annual report, website updates, board reports, fundraising appeals. Acknowledgment messages, staff, communications, process documentation, training documents. Do you need help with writing in 2022? Turn to communications, your story is their mission turn hyphen two dot C. O. Now back to is a social enterprise for you. All right. That’s a terrific story. But it’s, it’s, it’s more or less than or what not to do in in determining what, what, what businesses gonna survive. Because, you know, you said it, I’m just gonna amplify it. No amount of mission is gonna forgive, uh, bad, bad marketing or a bad bad entry choice or, or any of the, any of the market forces.

[00:17:02.44] spk_0:
Yeah. And I think you also have to have either a product or service that has a decent enough margin margin to sort of forgive the inefficiency. And I also wouldn’t choose food for that reason the ship sailed for us. But you know, that’s not the highest margin. Um, you know, product category. For sure.

[00:17:22.24] spk_1:
Right now, food is notoriously low margin. Um, but you know, you said you gave an example of hiring many more women than you need, then you would. Well, maybe then you do need, then you would, if you were strictly market driven.

[00:17:28.84] spk_0:
Exactly.

[00:17:36.24] spk_1:
Yeah. All right. Um, before, before we move on. Any other advice about the, the opening questions to talk about with your board, with your leadership?

[00:19:18.34] spk_0:
Well, another aspect of balance I think is uh, is balancing being opportunistic and, and um, and not being so bullish on an idea that you ignore, um, other signs. So as an example, uh, years ago we were approached by somebody who had a whole bunch of equipment for canning and they were willing to give us all the equipment, let us have access to the facility, a whole bunch of things. But what we really had to analyze and I think this happens actually a fair amount to organizations that are thinking of starting businesses. Somebody thinks I’ve got a great idea, I’ll just give this to them. But the thing was, we weren’t in the canning business, we are a dry food manufacturer and what it would have meant for us just, you know, pivot and create another business. You know, really wasn’t worth that. What seemed like a super generous donation. Um, it was forgive the pun, but it was a whole can of worms that we didn’t necessarily mean I need to open. But that’s an example because when you start talking about this, all manner of people are gonna surface who are interested and willing to help. And one of the most important things you might, I need to do is say no thank you because you know, sometimes gifts are not always gifts in the, you know, when it really comes down to it, it’s maybe not the best strategy and it’s sometimes hard not to get all, you know? Um Starry eyed about something that seems like a fantastic gift and the next thing, you know, you’re in the canning business and you never intended to be in.

[00:19:42.74] spk_1:
Now you’re doing wetsuits instead of instead of dried soup. That’s a that’s a huge pivot. Um And yeah, I mean, that’s and that’s in the nonprofit, the straight uh non profit sector as well. You know, there are gifts that come sometimes with strings. You know, if you’ll if you’ll adopt this, create this program or

[00:19:46.62] spk_0:
women’s

[00:20:33.44] spk_1:
school, but if you started admitting boys, I’ll give you the seven figure gift. You know, that’s those are the gift size can be transformational, but that doesn’t mean you you sacrifice your mission and transform your mission to accept $1 million dollar gift. Um So All right. But, you know, Mhm interesting. You know, you you you evaluated from the nonprofit perspective, but also from the market forced perspective. You know, now we’re entering, it’s a whole new business. Now we’re gonna be competing with uh um Campbell’s, you know, Campbell’s and Hunts and Hormel, you know, whoever, whatever that be, whatever the soup manufacturers are. Um All right, So value right, important lesson to sometimes the better answer is No, no, thank you, gracious. No.

[00:20:38.85] spk_0:
Yes. All right.

[00:20:47.24] spk_1:
All right. Um advice on types of businesses that that could lend themselves to this.

[00:22:15.84] spk_0:
I’ll start with um service businesses because sometimes those can actually be really great supports for a really great social enterprises and supports for human services organizations. The nice thing about service businesses are very localized. So you could serve one community and then an example of a service business might be a uh, landscaping business or there are several social enterprises around the country that do uh go to business districts and clean up trash and snow removal and leaf removal and those kinds of things. Again, those are very localized. And what’s nice about that is that you could do it in this city and then maybe you pick it up and you do the same thing in another city. Those are really cool ways to be able to employ a lot of people and engage in multiple communities. Uh and there are, you know, other businesses um, like uh, has control is another one where, you know, that’s a pretty expandable business, um, cleaning services, especially in offices and things like that. Um, so those are some examples of businesses that actually could be really great businesses for people. And when you’re selling a service, that’s a really different dynamic than, say, you know, consumer packaged goods where, you know, you’re competing with marketing dollars from companies, it’s just much more challenging um, area to be in. You

[00:22:51.64] spk_1:
also, you also have the advantage of being able to, as you said, start local. So you can say initially the impact of our work is local. And so there’s a there’s an appeal to an appeal to the mission with your caveat that uh lots of mission is not going to overcome bad, you know, uh not being competitive market market wise, but you can say that you have that you have that local impact at least as you’re, as you’re getting started and then as you’re suggesting, you know, you can expand.

[00:24:09.44] spk_0:
And I think, you know, if you’re making a product, one of the potential challenges is that if you make a product that in our case our products consumable, so we can have repeat customers, you know, of course it has to be a good quality and taste good and all of those things. But we have customers we’ve had for 30 years and who keep coming back over and over again. If you end up making a product that’s not consumable. The challenges that, you know, say you’re making uh cutting board, there’s only so many cutting boards, somebody needs or only so many gifts you can give, you know to other people. And so you always have to be finding new customers to be able to grow your business. And that said, there’s, you know, when you start out, your customer base is so small that the world really is, you know, is pretty large of possible customers. But there’s a point at which without spending a lot of marketing dollars or advertising dollars to get noticed that you really sort of tap out the people you can access and that’s, you know, so that’s an interesting challenge of making a product where you can teach some really amazing skills, but at the same time, you know, you might have a limited customer base.

[00:24:21.14] spk_1:
Can I get these uh can I get these meals and just add water? Are they, are they that are there that simple from women’s bean project?

[00:25:19.44] spk_0:
Pretty straightforward like that. So a soup mix, you would at water, you put it in a safe crock pot and let it cook for the day. And at the end you are 10 being soup, you just add a can of tomatoes or you could add vegetables and hope into other things if that’s what you wanted. But just to finish off the recipe, it would just be adding a can of tomatoes. We also have baking mixes. And so in that case it’s everything that you need. You would add an egg and some oil or butter and you’ve got brownies or corn bread or stones. So it’s a nice thing about like a baking mix for instance is you don’t have to buy a bag of flour and buy a bag of sugar and all of those things and then have them left over. You can use our mix and use the eggs that you have and the butter that you have. And next thing you know, you made these yummy brownies and you look like a total baker. No one’s the wiser,

[00:25:20.98] spk_1:
right? You don’t have, you don’t have four and three quarters pounds of flour

[00:25:25.05] spk_0:
over.

[00:25:30.94] spk_1:
Okay. A little digression. But I was interested in and how simple the meals are. Okay,

[00:25:31.49] spk_0:
we do have an instant,

[00:25:33.37] spk_1:
we have,

[00:25:47.84] spk_0:
yeah, we have instant beans and rice cups also, which literally are adding water. Um and then and we also have some ready to eat snacks. So you know, just keep them in your desk and you know, nosh on them whenever you feel like it. So we have a pretty wide variety of different products.

[00:25:58.84] spk_1:
Ok, I’m going to check women’s bean project dot com. Um So, okay, so service businesses were, you’re suggesting service businesses, what what else, what else could folks consider?

[00:27:43.74] spk_0:
Well, there’s some great social enterprises. Again, these are pretty localized that to screen printing. So you think about your inner city and you have your screen printing business, you’re able to employ people and you’re able to serve all the companies locally for, you know, their employee t shirts or you know, races or things like that. Again, very localized but also scalable As well. Um there’s a really awesome social enterprise out of Boston called more than words and more than words serves youth 16-24 who are either aging out of the foster system or justice involved and they sell books, they sell books have been donated from the community and the the youth learned the skill of scanning the I. S. P. N. Number to make sure it’s marketable. And they recycle the books that don’t have uh aftermarket value. And then they sell the books that do and they sell both online. They have a couple of bookstores. The cool thing is all these youth are you know they’re helping them find homes, they’re helping them with their academic goals helping them sort of adult you know into the community. Yet at the same time they’re also learning these skills of running a book business. So they have measurable uh um outcomes that they have to achieve. They have certain sales goals they have to meet for their various channels. It’s a really amazing business that that they’re operating in the youth. Stay with them for a couple of years.

[00:27:47.64] spk_1:
What’s the name of that 1?

[00:27:51.14] spk_0:
It’s called more than words? Okay.

[00:27:53.24] spk_1:
Yeah back on the service side I’ve seen uh copy copy services copy and print and print shops.

[00:28:33.54] spk_0:
Yeah A bank of America actually has their own social enterprise that they operate in the house. And they serve people with developmental disabilities are they employ people with developmental disabilities but they do all the printing for their own needs. Um There’s also electronics recycling. Uh you know the statistic is that people who are on the autism spectrum have an unemployment rate of about 85%. And and yet they are uniquely talented to disassemble electronics. So there there are electronics recycling organizations that employ people on the autism spectrum to just disassemble and um and then they part of so they’re providing the employment, they’re getting the donations of the electronics um and in some instances they’re being paid by the companies to take the electronics and then they also they sell the commodities of all the things that come out of those electronics,

[00:29:00.49] spk_1:
metals, plastics.

[00:29:01.67] spk_0:
Yeah, so you know when you think about that as a we use the term triple bottom line, it’s helping society, it’s helping the environment and it’s you know, it’s it’s making money. That is a really awesome example of of a business that hits at every level.

[00:29:24.54] spk_1:
Yeah, excellent, excellent. Another these are good another example or category.

[00:29:52.54] spk_0:
Well there are some social enterprises that instead of employing people provide employment services. So there is a social enterprise that here in Denver that specifically helps people who are bilingual, english spanish get jobs in the community with employers who need people who are bilingual, but that could apply to kind of any language or not even be bilingual, you know, so they and so companies come to them when they need people who maybe it’s customer service people who can speak another language other than english. Um and so again a service business but not where they are employing people.

[00:30:11.34] spk_1:
Right, right. And and so companies pay for the for the referral for the screening.

[00:30:16.04] spk_0:
Yeah,

[00:30:16.58] spk_1:
the placement basically they’re paying a placement fee,

[00:30:20.94] spk_0:
yep, exactly,

[00:32:45.74] spk_1:
it’s time for Tony stick to Core Africa, the Core Africa Ceo and longtime non profit radio Fan Liz Fanning announced last week a three year $17 million collaboration with the Mastercard Foundation. Outstanding, congratulations Liz, congratulations! Core Africa. This is going to allow Core Africa to expand from four countries, 2, 8 countries in Africa. and initially Mastercard Foundation was funding 56 young volunteers That’s going to scale up to 500. Almost 10 fold. This is, you know, talk about scaling, it’s just terrific news. Um and I think the real lesson here is in what the Mastercard Foundation Ceo cited in his quote, he says quote, Core Africa has proven its impact in rural communities and demonstrated the value of deploying a network of service minded young Africans to solve pressing issues across the continent. Their vision aligns with our young Africa works strategy end quote and he goes on. So he’s talking about the proven impact and vision alignment with what Mastercard Foundation is looking for. It’s just terrific news to scale like that, a $17 million, three year collaboration with a marquee name. Foundation for Core Africa, it’s terrific. You know, it’s a, it’s a testament to the work that they’ve done the impact that they have proven. So again, congratulations to Core Africa on this monumental funding for your important work That is Tony’s take two, we’ve got boo koo but loads more time for is a social enterprise for you.

[00:33:12.54] spk_0:
But there’s, you know, there’s just so many different kinds, there are cafes that’s a fairly popular kind of social enterprise. Um here in Denver we have a cafe called same cafe and same stands for, so all may eat and they, it is a pay what you want model. So you walk in and the menu is listed for the day and you decide how much you’re going to pay. You

[00:33:18.46] spk_1:
have heard of them.

[00:33:37.74] spk_0:
Yes. And, and so you might be sitting down and having, you know, decide that you want to pay $10 for your lunch, but you also might be sitting next to somebody who is um experiencing homelessness and didn’t pay anything and if you decide if you don’t have any money to pay for your lunch, then you work in the kitchen or you clean or you know do dishes and um and so again, it’s a really cool concept that serves people all, you know, it’s beneficial to the community at multiple levels.

[00:34:06.14] spk_1:
Excellent. These are cool examples. Yeah. Um so, all right, so we talked about services, uh some some product, I love the recycling example too. Uh any anything else before we, before we move on to organizing these these entities.

[00:35:37.54] spk_0:
Um well, the last one I’ll mention is one that’s been around for a long, long time, like women’s bean project is called Grace and bakery. They’re out of Yonkers new york and they make the brownies for Ben and jerry’s ice cream. So a big, the bulk of their business is brownies for Ben and jerry’s and they also have now gotten into doing some retail sales and corporate sales. So you might see your listeners might have seen them in some for instance whole foods at sort of a point of sale or point of purchase with a little brownie and it says these brownies changed lives, but Grayson is a for profit company. So this is a nice segue into the next part of our conversation. They are actually a B corp a benefit corporation and they they have an open hiring model. So instead of specifically going out and trying to recruit people experiencing chronic unemployment, like we do, they are always accepting applications and when they have an opening they just hire the next person on the list. So they hire, they don’t, you know, interview or you know, look at qualifications, they just hire the next person and uh you know, so they will have more turnover than a normal company would, but they’re also within that community in Yonkers, they’re they’re really changing people’s lives give by giving them an opportunity for employment that they might not otherwise have had.

[00:35:42.64] spk_1:
Okay, that’s interesting. First, that’s Grayson, G. Like

[00:35:46.56] spk_0:
G. R E Y S. T O N.

[00:36:23.63] spk_1:
Kristen bakery. Yeah, these brownies save lives. Okay, so listeners, we might, we might see those at at checkout sounds like point of sale places. Okay. Um, but then, you know, there’s the issue of, you know, giving a job versus teaching job skills in addition like, like, like women’s bean project is doing, it seems to me that the, the training beyond the skills for the job is more empowering than then giving a job and just giving a job.

[00:36:49.83] spk_0:
Well, I think that’s consistent with our philosophy at women’s bean project that there are because we acknowledge that there are lots of things that get in the way of somebody being able to get and keep the and keep I think is the important part, right? Like in a weave prior to the pandemic and I think we’re back to a, there’s a lot of jobs, but um, and so you could go from job to job to job in an environment where there are lots of jobs. But the important thing is, are you going to a job where you are a contributor where there is opportunity for advancement and benefits and all the things that make it more of a career than just a job. That’s what we’re trying to do and how we’re trying to change the, are the women we serve. That’s the trajectory we want them to be on when they finished.

[00:37:27.13] spk_1:
All right. So, you know, of course, different missions. I mean just like nonprofits that Grayson has uh, has a different model, but but there there generously hiring, they just hire the next person on the list.

[00:37:33.13] spk_0:
Yeah, Yeah. Sorry?

[00:37:34.33] spk_1:
All right. So, yeah, as you suggested, and I wanted to talk about the how to organize and structure these, you know, like what’s the relationship listeners already are in non profits? Most of our listeners are uh, you know, how what would that relationship look like if they did start a social enterprise?

[00:37:52.13] spk_0:
Well, I know as as the interviewer here, you you will hate to hear this answer, but it depends. Okay, listen

[00:38:00.16] spk_1:
now, don’t hold back on. Don’t

[00:38:02.29] spk_0:
don’t tell

[00:38:04.31] spk_1:
listeners of nonprofit radio what you think they want to hear?

[00:38:06.87] spk_0:
It’s

[00:38:07.71] spk_1:
an educated self selected group.

[00:38:09.80] spk_0:
So yes, so nuanced

[00:38:12.28] spk_1:
answers are very welcome.

[00:40:13.71] spk_0:
Well, it it does depend and it depends on what you want to do and how you might want to structure it and and honestly tolerance, risk tolerance of your board and you know, of your team. So, um Women’s Bean Project is a five oh one C three. A big reason for that is because we were founded in 1989 and if you wanted to do good, that was the choice, right? That’s all you had. Um, today there are lots of different structures. You could, or opportunities. You could be a for profit company, um, and become a benefit corporation, B Corp you could be a subsidiary of a nonprofit. Um, you could be an LLC, you know, there are just so many different ways. And so generally what I tell people is first figure out what you want to do, then figure out what the corporate structure makes the most sense. What I will tell you is that I wouldn’t necessarily change our corporate structure because we’ve made it work for ourselves. Our the way we have structured ourselves by having everything under one roof. The huge job in the beam job is that we what that’s done is that it has allowed us to have a mixed revenue uh pie, so to speak. So about 60% 60% of our operating budget comes from our product sales. What that does is it supports the business that supports women’s time while they’re working in the business. And it gives us the ability by the beans and the flour and all those things and makes a small contribution to our program operations. And then we fundraise to support program operations because again when a woman is in a financial literacy class or working on a resume or even in job search, looking for the next job, we’re paying her still. So we fundraise to both support those classes but also to be able to pay her. And because we’re five and one C three we have the ability to do that. It also probably gives us a little bit of wiggle room in terms of our inefficiency. Um you know I would if we were if if all of our revenue had to come from our product sales. We would probably have to compromise the mission a little bit and hire fewer women because we have to run a business with much better margin than we currently do

[00:40:27.55] spk_1:
more efficient.

[00:41:28.61] spk_0:
Yeah. But I will also say that there are plenty of situations where the, a board of a nonprofit, they might be interested in this idea of having revenue that’s basically unrestricted revenue, but they don’t want to risk the larger organization or they do or they want to just sort of run it on the side as sort of a separate entity and maybe not have it be a distraction within their main business, so to speak. There there are risks in that as well though. I’ve seen lots of uh, non profit big human services organizations that run social enterprises and they sort of treat them like the red headed step child. And, and look at him like what have you done for me lately? Little, you know, business, Why are you not contributing more when the reality is they’re kind of stifling the growth of that, that business. Um, and, and perhaps, um, you know, causing it to, you know, not prosper. Yeah, that’s

[00:41:48.11] spk_1:
a mistaken, well not only organization, but just in, in culture, in you think that the way board members and I guess the organization collectively thinks about its social enterprise as, you know, as uh, the ugly step child.

[00:41:50.51] spk_0:
Yeah. And that’s the risk, right? If of creating a structure where you sort of set it off to the side. I mean I understand that sometimes that’s done to avoid risk, but sometimes it creates more risk for the survival of the business. One of the things I worry about having been in this field for a long time is that, you know, uh we’ve now come to a point where social enterprise is kind of cool. It’s kind of come into its own, I joke that it’s like women’s bean project has been wearing a velour tracksuit for 30 years and now suddenly velour track suits are in uh but you know, so

[00:42:24.27] spk_1:
stay behind me with bell bottom suit.

[00:42:27.61] spk_0:
Yeah, exactly. Behind long enough, if I hold on to these

[00:42:30.51] spk_1:
things long enough they’ll come, they’ll come my dozen bellbottoms suits will come back.

[00:43:14.10] spk_0:
It turns out that’s happening for social enterprise. But what I worry is that organizations will start a business and do that and sort of cut it off at its knees and not even maybe recognize that and it won’t survive and then they’ll look back later and say, yeah, we tried that. It didn’t work. But I can tell you that if it it’s not always because it’s a bad idea that it doesn’t work. It could be because you just didn’t give it the opportunity for us, we in the nonprofit world are notoriously risk averse. That’s not a news flash to anybody I know. And so the challenge is to be willing to take some risk and balance at risk. You know, it’s a risk reward ratio in a business and balance that risk a little bit um With with what the benefit could be a long term.

[00:43:36.70] spk_1:
Yeah you started the transition again. I love it the way you segue easily uh lessons you know, lessons learnt things to look out for things to be sure you you’ve considered You’ve been doing this for 30 what 32 years?

[00:43:39.70] spk_0:
30

[00:43:40.60] spk_1:
two years.

[00:44:59.49] spk_0:
Yeah, Well I often say we have 32 years worth of mistakes. We could totally help somebody else avoid and leave them free to make all their own mistakes. Um you know it’s I would say the lessons learned are are consistent with what I’ve been saying, which is you really do um If you want a social enterprise to survive, you really do have to embrace it as as being a means through which you’re going to deliver on your mission and not set it on the side and say well you know someday you’re gonna make me some money and I’ll be able to use that money to advance my mission. They have to be interwoven. Um so you know, we don’t exist to make bean soup yet we can’t exist without it. And that idea that the two are inextricable um is probably the most important thing and the most important, honestly lesson that I’ve seen. I watched a social enterprise um be formed out of an organization that was providing initially providing the same service for free. And then they formed the social enterprise too monetize the service, but yet they kept offering the service. So they had this business and they kept offering the service for free. So

[00:45:01.07] spk_1:
yes.

[00:45:46.09] spk_0:
And um, and then eventually decided that the social enterprise wasn’t working. And the, the problem I thought, you know, it’s, it’s easy monday morning quarterback, admittedly, but you know, was that they set it up to be a complete, you know, be its own competition. So of course it was, there was always going to be that tension and that conflict. You’ve got enough tension and conflict, just trying to advance your mission and advance your business without setting yourself up for failure. So, you know, that’s another lesson which is be prepared for there to be tension between the business and the mission. But be okay with that because that’s part of what you’re doing is you’re trying to change the world by using market forces. Uh, and you know, we are, we’re a country of consumers. So let’s take advantage of the fact that we are a country of consumers. Everybody needs to buy products and services. So what a great opportunity to, um, to, to, for lack of a better word, exploit that.

[00:46:16.38] spk_1:
I love the way you say, you’re working to change the world by using market forces. Um, all right. Any anything else? You wanna, you wanna leave folks with anything that we didn’t talk about that you feel is is important. Anything I didn’t ask about,

[00:47:21.58] spk_0:
you know, I would say, uh, the last thing would be that if you are thinking about, um, starting a social enterprise, start looking at other models and seeing what other groups are doing. And especially if they’re localized, there’s, you know, there’s no reason to that. You wouldn’t be able to learn from their mistakes. Um, so you we have been asked often whether or not we would expand women’s Bean project out of Denver across the country. What we have chosen instead is to be more open source where we look forward to sharing the things that we’ve learned because I think ultimately, if we want to lift up the whole field, not just, you know, aggrandized women’s Bean project, that’s not our goal. Our goal really is to help other organizations create or prosper with their social enterprises, not just have us get bigger and bigger. There’s enough need to go around.

[00:47:27.88] spk_1:
Mm hmm. What about social enterprise Alliance? Is that a resource for folks?

[00:47:41.68] spk_0:
It absolutely is. And that might be a great place to start to figure out what is out there. They have social enterprise alliance has, uh, you know, members all over the country who are involved at various levels of social enterprise. So they might be running social enterprises or they might be consultants to social enterprise. Um, if you need an attorney to talk with, for instance about what your corporate structure might be their resources there. Um, but the nice thing about that is if you’re in the initial stages of just doing research is a great place to start.

[00:48:12.47] spk_1:
Okay, good value. You can have conversations with folks, you can, you can, it’s a good place to start your research and, and, and grow if you decide to

[00:48:14.13] spk_0:
mean, you

[00:48:23.87] spk_1:
might start your research and decide. It’s not really, you know, you can’t tolerate the risk or the tension. Uh, it was just something you don’t want to take on, but at least you do it, make that decision informed.

[00:49:44.67] spk_0:
Yeah. I always think that fear is not a reason not to do something right. Like you can acknowledge the fear and sort of do the things that, that you need to do to, um, to try to overcome or, you know, address the fear, but staying noticed something just because you’re afraid. It’s maybe not the best reason. Uh, and I think also, you know, we have a tendency to sit at the, at the starting line and try to anticipate all the problems we’re going to have. And, and I guarantee, first of all, we’ll be wrong about what problems we think we’re going to have and whatever solution we decide it’s gonna not be appropriate for whatever problem you end up having. And so ultimately you just got to start and and have faith that you have gather the resources and the expertise enough that you can address the problems as they come up. But I think that that tends to be and in my experience, just going to lots of, you know, speaking on lots of panels and talking with lots of organizations that are thinking about starting social enterprises is they, they often get stuck at that starting line and have a hard time pulling the trigger. Um, the reality is, it might not work, but think about it. I, I think you learn more from failure than you do successful a lot of times.

[00:49:57.67] spk_1:
Yeah, too much ready, aim, aim, aim and, and, and no firing. All right, outstanding. Thank you Tamara, thank you very much.

[00:50:00.34] spk_0:
Thank you

[00:51:23.16] spk_1:
my pleasure. Thanks for sharing. Thanks for sharing the women’s Bean project story and and beyond. Uh, tomorrow Ryan Ceo women’s being project. It’s at women’s Bean project dot com. You want to look at their dried foods and other products, especially now around the holidays and Tamara is at tomorrow Ryan. Thanks so much Tamara next week. How about our annual replay of zombie loyalists? I think. So, if you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c. O our creative producer is Claire Meyerhoff shows social media is by Susan Chavez Marc Silverman is our web guy and this music is by scott Stein. Mhm. Thank you for that information, scotty You with me next week for nonprofit radio big nonprofit ideas for the other 95% go out and be great.

Nonprofit Radio for December 6, 2021: Purpose Driven Marketing

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Stu Swineford: Purpose Driven Marketing

Stu Swineford reveals the principles and pillars of purpose driven marketing that will keep your donors engaged and wanting to support your mission. He’s co-author of the ebook, “Mission Uncomfortable.”

 

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Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.
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[00:01:45.54] spk_1:
Yeah. Hello and welcome to tony-martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d be stricken with scabs if you invested me with the idea that you missed this week’s show purpose driven marketing stew. Swinford reveals the principles and pillars of purpose driven marketing that will keep your donors engaged and wanting to support your mission. He’s co author of the book, Mission uncomfortable On Tony’s take two planned giving accelerator were sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o here is purpose driven marketing. Yeah, it’s my pleasure to welcome for his first time on nonprofit radio stew Swinford. He is a mountain fellow, cinephile and co founder of Relish Studio, a digital marketing firm that creates conversion focused marketing solutions for nonprofits with Aaron Rixon, he’s co author of the book mission uncomfortable how nonprofits can embrace purpose driven marketing to survive and thrive. He and the company are at relish studio and relish studio dot com. Welcome to nonprofit radios

[00:01:46.65] spk_0:
to well thank you so much for having me on today. tony

[00:02:00.34] spk_1:
pleasure pleasure. Uh we got to take care of the most obvious things first before we get to your book and purpose driven marketing. You’re a mountain fella. So I mean you live in the mountains.

[00:02:17.74] spk_0:
I do. We live up here at about 9000 ft up kind of west of Denver Netherland is kind of the closest biggest town. Um, but live in a little cabin that was built in the 40s here in the woods with my wife and our are slew of pets, which hopefully will not interrupt us today.

[00:02:22.78] spk_1:
That’s okay. We’re very family friendly on a

[00:02:25.12] spk_0:
nice family embracing,

[00:02:28.94] spk_1:
not just family friendly family embracing. So 9000 ft. So you’re so you’re one of those people who follows the uh the high altitude directions on baking?

[00:02:38.34] spk_0:
Absolutely, yeah. Okay. And those are actually mostly geared for Denver, which is about 50 400 ft. So we have to make even more adjustments usually when we’re doing things up here.

[00:02:50.44] spk_1:
And do you need special cars or special equipment on your cars to drive at that altitude?

[00:03:11.34] spk_0:
No, not really. Not really. Everything’s electronically controlled at this point, so you don’t, you don’t have to make too many adjustments. I think an older car or older motorcycles for sure you have to reach it um in order to perform well at higher altitudes, but older ones. Okay. Yeah. Are you

[00:03:17.25] spk_1:
skiing there in the mountain?

[00:03:31.84] spk_0:
Well, not currently. Uh we we don’t have, we got a little bit of snow last week, but it’s mostly gone. Um I believe a basin actually opened last week. So they are skiing up a little higher than we are located. Um And El Dora, which is the local ski area is threatening to open here toward the end of the month, but we’ll we’ll see what happens. It’s been a little bit warm.

[00:03:42.24] spk_1:
Okay, this is uh we’re recording in mid october

[00:03:46.52] spk_0:
Yes, yes. Okay. Okay.

[00:03:48.66] spk_1:
Are you a cross country skier?

[00:04:06.64] spk_0:
I do I know a Nordic ski and backcountry ski. I don’t go to the resorts all that much anymore. I used to be a big resort guy and um I used to ski about 80 days a year. Um and I I would say last year I probably got 20 or 25 days a but it was mostly back country skiing.

[00:04:09.84] spk_1:
Okay. And cinephile. Yeah, I have a favorite director genre.

[00:04:30.54] spk_0:
Well I love the Coen Brothers, they’re probably my favorite directors. Um And I used to write for film threat and I was I was a critic for a short period of time. Um And I just love watching movies and uh that’s something that I enjoy.

[00:04:32.24] spk_1:
Yeah, wonderful. You have a favorite Coen Brothers movie? That’s hard. That’s hard. It’s tough. Maybe asking you a question that I couldn’t answer

[00:05:06.74] spk_0:
myself many of their films um have something to be enjoyed. I would say my go to favorite when people ask is Miller’s Crossing, which was one of their earlier films um starring Gabriel Byrne. And uh it’s just a you know, it’s it’s a it’s a fun little movie but you know, I’ve watched the Big Lebowski. I don’t know how many times and um you know they have a great uh collection and selection of movies for people

[00:05:46.94] spk_1:
o Brother where art thou Burn after reading these are some these are something but Miller’s Crossing that with Gabriel Byrne. I’ve I’ve seen that a few times that I think I might have that one in my collection. I’m pretty discerning about which movies actually purchase physical copies of so that I can watch them when I want to, streaming services decide that they want to have them bond for six months. And I think Miller’s Crossing is in there because that that’s uh it’s an early one but he’s uh he’s a he’s a it’s an interesting gangster um gangster profile

[00:05:48.37] spk_0:
I suppose. Yeah, it’s kind of a gangster movie set in the prohibition era. Um It just has great, great dialogue and uh and it’s you know, it’s not for the whole family for sure, but but it’s definitely a good one if people haven’t checked that one out,

[00:06:03.74] spk_1:
Hudsucker proxy

[00:06:04.70] spk_0:
to great name

[00:06:08.24] spk_1:
that often. But paul newman

[00:06:10.64] spk_0:
uh tim Robbins, tim Robbins. Exactly.

[00:06:29.14] spk_1:
Yeah. The circle, it’s a circle for kids. It’s for kids, you know, circle, you know kids so alright, so coen brothers fans, you will get that, you’ll get that reference if not you can watch the Hudsucker proxy and uh and you’ll get it all right. Um So purpose driven marketing, why don’t we just define this thing. What is this first?

[00:08:35.64] spk_0:
Well purpose driven marketing in our minds is here it relishes um is really marketing that has a goal in mind. And then also we really try to work with purpose focused leaders who have something bigger than just making money in mind for their organization. So whether they’re a 1% for the planet partner or a nonprofit or a B corp um, those are the kinds of people that we really like to work with and, and uh, you know, I sort of, I guess I grew into this over the years, uh, At relish. We started in 2008 and in about 2013, my business partner and I started thinking, Wow, you know, we’re, we have this opportunity as entrepreneurs and business owners to, to really create something different than just uh, an organization or a business that that is here to make money. We can actually kind of mold this in, in our own fashion. And so we started looking for ways to create some giving back here at relish and that was when we joined 1% of the Planet Colorado Outdoor business alliance organizations like that, that colorado non profit association that enabled us to, to start to kind of codify or, or formalize are giving back as well as, you know, really meet and um, and be able to serve those people who are doing a lot more in the world than just, you know, funding, uh, the owners next vacation home or yacht or something like that. Um, in terms of, of conversion focus. However, you know, that’s another piece of the purpose component um, is really making sure that people’s marketing is aligned with a goal and that we’re helping them achieve that goal. So it’s, it’s just a thoughtful way of approaching the whole marketing space um where it becomes, you know, something that you’re investing in. Um it’s not just an expense, it’s something that’s actually creating a return on that investment. Mhm.

[00:08:41.24] spk_1:
And you, you focus a lot on building relationships through purpose driven marketing. How, just as an overview, we’re going to get to that, we’re gonna get to your four pillars, but how do you see purpose driven marketing contributing to relationship building?

[00:10:11.74] spk_0:
Well, we look at marketing is really, that’s all marketing is, is building relationships and really, instead of attempting to sell all the time, um, we see marketing that works as as an opportunity to create a relationship, to build a connection as opposed to just trying to sell something. Um You know, usually in in any kind of transactional relationship, um you have to get to know the person trust like them. Um and then move on to kind of being able to try and, and by and then hopefully people move into the kind of this repeat and refer proportion of their, of their life cycle. Um But ultimately, at the end of the day, it’s all about creating this atmosphere where people, um not only know who you are, but but really get to like you and to trust you in order to uh take that next step, which is to try and to buy your services or your, you know, your organization’s um, uh, benefits that they’re bringing, that you’re bringing to the, to the marketplace and to the nonprofit space in particular. Um, and so that’s that’s kind of how we see marketing is is just really creating opportunities to build upon um interactions and create a really strong, solid relationship with people.

[00:10:27.84] spk_1:
And you take time to, hey, make sure people are not thinking of marketing as a pejorative, you know, that it’s that it’s I don’t know that you use the way, I don’t think you use the word sales. E but you know, you uh you’re you’re making sure people are, are looking at marketing the way you and Aaron are, and not the way, you know, an amazon looks at looks at marketing.

[00:10:44.44] spk_0:
Well, it’s interesting even in the amazon space, but the short answer is yes. But even in the amazon space, they’re trying to create opportunities for um for relationship building. So there is there are some

[00:10:56.86] spk_1:
lessons to be learned from

[00:12:06.84] spk_0:
the Yeah. And that’s how we just kind of see marketing. So whether that’s selling a widget where you have to convince somebody that this is a durable, um, you know, tool that will solve whatever problem it is that they’re trying to solve. Um, you’re you’re always trying to build a relationship there. You’re always trying to create an opportunity for somebody to get to, to know that company, um, understand why they’re doing things and uh, I believe that that this transaction is going to result in a positive, um, outcome. And, and whether that’s a long term kind of approach where you are trying to convince a donor to give, you know, thousands and thousands of dollars to your organization or a very short term relationship where you’re just trying to convince somebody to, I don’t know, buy a soda because they’re thirsty. Um, you know, it is all about creating that, uh, ability and opportunity to, um, for, for people to start to know like, and trust you in that in that connect and um, and convert face of the, of the scenario.

[00:12:33.14] spk_1:
Yeah. Know like, and trust Trust is when you can build trust with folks and uh, then, uh, there are so much more likely to open your, open your messages, uh, follow your calls to action, you know, when there’s trust with the brand and the work, that’s uh, that’s a pinnacle in a relationship.

[00:13:00.84] spk_0:
Yeah. And ultimately relationships are built through interactions over some period of time. And so whether those interactions are, you know, commercials that are aired, um, or emails that are sent and uh, questions that are answered. Um, or even, you know, social media outreach and uh, back and forth when you can create when you can create that interaction, when you can create that, that back and forth, that then solidifies and builds and strengthens strengthens that relationship. And so those are the kinds of things that we help our clients and partners facilitate through marketing.

[00:13:21.94] spk_1:
It’s interesting the back and forth, not just the one way, you know, messages going from us to those, we’re trying to build trust with

[00:13:27.91] spk_0:
a little more

[00:13:29.10] spk_1:
about how it’s how it’s two way communication, not not one way.

[00:15:02.54] spk_0:
Yeah, so that’s actually one of the things we see people, one of the bigger mistakes people make in the social media space is that they use social media as kind of a soap box where they get on and they present their, you know, whatever whatever it is of the day, whether it’s a sales pitch or even a an item of value, but they fail to try to build those relationships. Um and you know, social media is at its core a social component which requires back and forth, which requires um you know, companies and their, you know, they’re the people who are working with them to go out and and create opportunities to start those conversations on social media. So instead of simply going to your particular platform and posting something, um you know, really one needs to be out there um interacting and and commenting and posting on other people’s materials as well as posting on on your own materials and answering questions. Um google reviews is actually a great, another great example of a place where people have an opportunity to create a back and forth, whether that’s a positive review or a negative review that someone is left about your organization. Um, you know, making sure that you answer that and even try to create, you know, opportunities for back and forth. So ask open ended questions. Um, you know, comment on how beautiful that photo was on instagram and then ask them a question about what inspired them to take that or what camera settings they used or you know, whatever the whatever the the thing is that inspires those conversations and and gets people going back and forth, that tends to create those opportunities to build a relationship.

[00:17:41.34] spk_1:
It’s time for a break. Turn to communications, content creation, content is king. The medium is the message birds of a feather, flock together. The apple doesn’t fall far from the tree. So well the first two of those apply, we don’t, we don’t need the birds and the apples, but content content if you need content in the coming year, for for what? For digital, for print for an annual report for some other report to the board content. If you need content for your social channels, they can do all this turn to, they’ll help you hone your messaging. And as far as press, get your messages out in the channels that you’ve heard me talk about like Chronicle of philanthropy new york times, Washington post Detroit, free press etcetera cbs market watch. So content. If you need content for whatever purpose, think about turn to you need help get this off your plate there. The pros they write it, they’ll, they’ll get it off your shoulders because your story, is there mission turn hyphen two dot C. O. Now, back to purpose driven marketing. Okay. In that spirit, the reason I was attracted to you reached out to you to be a guest is you posted something interesting on linkedin. So I looked a little further in linkedin and you had a phone number that folks could pick up and say, you know, if you want to chat, reach, reach me here, uh, let me chat with the guy, I’m gonna pick up. Sorry, uh, like five minutes after I had read your post and did a little research, I said, I’m gonna talk to the guy. So you created an opportunity for people to reach you. Uh, uh, you know, and I grabbed it and I thought, first of all, it’s very unusual for someone to put a phone number and it didn’t go to google mail. It was your voicemail or google voice. I should say. It was your it was your it was your voicemail. And uh, you know, you called me back and we chatted. So you’re you’re you’re walking, you’re walking your

[00:17:51.84] spk_0:
walk. Well, I hope so. You’re walking your talk, I guess. I hope so. That’s one of the challenges of, of running uh running a marketing agency as we have the cobbler’s kids challenge a lot of the time where we we can do a really good job for our clients. But we tend to uh neglect our own outreach in our own websites and those types of things. I’m happy that that that that actually worked. Um we’ll do this. So yeah, it was great. I’m curious. Which do you remember which post it was that that you found compelling?

[00:18:24.54] spk_1:
No, it was too long ago. Okay. No, it was over a month ago that we first connected. I don’t know if it was about your book, but was it could have been the release. Had your book just come out recently or No,

[00:18:32.95] spk_0:
the book dropped in uh february last. All right

[00:18:48.74] spk_1:
then. I knew you had when I well, I knew you had written a book when I called you because I left you a message saying I’d like to have you on the show and talk about the book. Um I don’t remember. I don’t know. It’s

[00:18:50.19] spk_0:
okay. I was just curious to know if you if you remember what what thing I said that that made you want to pick up the phone. There was you know,

[00:19:14.64] spk_1:
you you know, I think you might have commented on something that I commented on to. Uh and so obviously I appreciated your comment. I think I think it was that I think it was a comment not a post of yours because you weren’t weren’t connected. So I wouldn’t have seen your. Yeah, I think it was I think you commented on something that I commented on.

[00:19:54.94] spk_0:
So so there’s a really great example of of how that relationship building peace can actually function to create another relationship opportunity. Um where you know, if if I were just using my, you know, linkedin platform to to espouse information and hopefully give some value driven stuff you and I never would have actually or it would have been less likely for us to have connected because uh what it took was me going out to someone else’s post and commenting about giving them some more information or saying nice post or whatever it was that I said um that they gave you got me in front of you. So um that’s a really good example of how one can can leverage that power of social media to to expand their network.

[00:20:07.37] spk_1:
It works so be social

[00:20:15.94] spk_0:
exact conversation. It is socially, it’s all about creating conversations. Yes. Let’s

[00:20:16.73] spk_1:
talk about your four pillars of of purpose driven marketing. Why don’t you just give us an overview and then uh and then let’s go in and I, you know, I got some things I want to talk about for each one but

[00:20:28.29] spk_0:
acquaintance

[00:20:29.42] spk_1:
with them first.

[00:23:23.94] spk_0:
Sure. So the four pillars as we see them in in terms of kind of this this client or customer lifecycle um is really starts with attraction. And that’s how do you get people to come to your properties, whether those are your social properties or your website or your storefront, How do you get out there in the marketplace and uh, and enable people to find you? And then we move to the bond phase, which is really the, the next step of that conversation where you’re not only have you brought people in. So you’ve, you’ve created an opportunity for them to find out about you, but now you’re creating this opportunity for them to actually get into the fold to, um, to kind of be part of your inner network. And um, and the connection phase a lot of times requires um, either a value exchange of some, some sort of information. Um, you know, what we’re really trying to do is help build those relationships and help not only, you know, take these people who have now found you and enable them to uh, to have an ongoing relationship, an ongoing conversation created. Um, so that’s kind of that bond phase and then the next phase is kind of this convert phase. And that would be the sails easiest part of this uh kind of system where essentially this is where we get people to either try or buy from you and in the nonprofit space, this would be, you know, getting someone to either, um, you know, really take advantage of something that you’re offering. So if you think about the nonprofit stakeholders, typically there are donors, there are volunteers, There are actual um, recipients of the of the nonprofits benefits. And then, um, you know, there could be kind of sponsors and and people in that frame as well. So how do we get those people to actually take some sort of an action either make a donation, volunteer, some of their time, etcetera. And then in the final phase, which is kind of this inspire phase, um, that’s where we’re trying to get people to either escalate their engagement. So you take a one time donor and get them to become a, you know, a monthly donor. You get someone who perhaps is a monthly donor or maybe as a one time donor and get them to bring their their business in as a corporate sponsor. Um, you get someone to escalate um, and repeat. And then also evangelize for your organization and get out there and really refer you, uh tell people that they should be a part of this organization as well, um or um, or even just shouting it out on social media about, you know, some great volunteer experience that you had. So those are kind of the main four pillars. And again, kind of heard me talk about them in a different framework earlier where, you know, we’re really trying to get people to um, to know like trust tribe. I repeat and refer those are kind of the seven components of those four pillars. Okay,

[00:23:49.64] spk_1:
so before we dive into each of these, these four, but let’s let folks know how they can get your, your ebook mission uncomfortable.

[00:23:52.67] spk_0:
Sure they can, they can download it online. It’s, I decided to not publish it in a printed format at least this current time trying to save some trees. Um, but it is available at mission uncomfortable book dot com.

[00:24:19.54] spk_1:
Okay. And we’ll make sure we, I say that again at the end. So so attract connect bond, inspire when, when we’re, when we’re doing attraction, we’re attracting folks. You talk a lot you and Aaron talk a lot about personas, you’d like to rely on those, explain the value of how they work, what their value

[00:25:50.84] spk_0:
is. Yeah. So persona is, it can also be called an avatar. It’s essentially an ideal audience. So when you start to think about who you’re trying to attract to your organization. Um one of the first things we recommend doing is really doing some exploration in terms of personas and and really getting an understanding of the motivations for your target audience groups, um, what their demographics might look like. Um, you know, what, what makes them tick and why would they want to come. Uh, and, and uh, you know, connect with and participate with your organization. And so when you think of all, there’s usually more than one persona. Um, you know, a volunteer might be a completely different person than a donor for example. Um and and then a recipient of your of your benefits, would you know, potentially be even even different persona. Um So build what you can do is build out as many of these as you think you need to in order to get a feel for who it is that you’re kind of trying to reach a lot of times when we build out personas for our clients and partners, we really create a visual um you know, person that people can wrap their arms around. We name them, we find a stock photo that’s representative of representative of that person. You

[00:25:59.33] spk_1:
go to photos even I’ve heard of naming, giving, giving them names, but you go to photos.

[00:27:58.94] spk_0:
Yeah. Picture somebody. Okay. Yeah. Trying to create as much of uh of something that you can wrap your arms around when you’re talking about this audience group. Um and you know, I would say don’t go overboard, don’t try to overthink it to start because you know, you can get kind of in the weeds with persona development where All of a sudden you have 15 different personas that you’re trying to to reach and it just becomes confusing. So one of the things that we would recommend is just starting simple and just think about, who you know, if you were thinking of an ideal volunteer, just one of them and we know that there are many who would that person be um you know, would they be uh woman between the ages of 35 42 who has um, had a career and now has, you know, maybe has a little bit more free time in that career or perhaps even works for a company that offers uh, you know, matching for volunteer opportunities. Um, does she have Children? Is she married? Does, what does she, what does she look like? Who is this person? And you know, maybe her name is Jill and you can just really start to talk about and think about who Jill is when you are planning your marketing outreach. So does she play and find information and spend a lot of time on facebook or is she more on instagram? Is she out? Um, you know, in certain places in the local community where you can can reach her farmers markets for example, or um, you know, or perhaps other types of, of events where where would you need to go to run into and connect with uh, with Jill and get her to understand who you are and a tractor to your organization. And so it really that persona development really helps you map out your marketing strategy so that you’re not spending a bunch of time trying to attract, you know, boomers by posting on Tiktok.

[00:28:30.34] spk_1:
And when you’ve so identified the the folks that you want to connect with, that, that’s what the purpose of the personas is your identifying different different categories of people you’re trying to to connect with and you, you want to focus on delivering some content for them to connect with. And you have lots of examples of blogs and social networks and podcasts and white papers, etcetera. Talk about, you know, matching the content I guess with with with for your personas.

[00:29:48.04] spk_0:
Yeah. So when we talk about content, we really start with trying to create value exchange here. So this is actually the first transactional piece of the transactional relationship that you’re that you’re attempting to build. Um, the end goal may be to get uh, you know, a donation or get somebody to exchange their time to volunteer with you, which is something of value. But at the onset, um, it’s really about getting into this kind of try um, trust and try phase um, there’s a little bit of the like phase in there as well, but at this point they know who you are now. You’re really trying to get them to like trust and try your organization. So in this phase of the relationship, um, you know, coming up with things that might be beneficial to this person. So for example, um, Leave No Trace is a, is a nonprofit organization that is trying to get people to have a better understanding of how they can interact with our open spaces and natural places more effectively. One of the things that I’ve seen from them in the past are are these great cards that have the leave no trace principles. And and so they’re right there handy. You can have them attached to your pack or in your pocket um that that really give people

[00:30:16.38] spk_1:
presumably you don’t you don’t leave these cards behind at your

[00:30:18.88] spk_0:
campsite. Yes, exactly. These come with you uh the

[00:30:21.61] spk_1:
letter with the card.

[00:31:32.24] spk_0:
Yeah, Yeah, but but a, you know, a convert phase, you know, kind of opportunity here might be um either an online version of that card. So people could give, you know, give them their email in order to get this card, get access to this information or even uh, you know, provide your address and they might send you on. I don’t know exactly what leave no trace is doing with these these types of informational items. But that might be uh, you know, a tactic that they could use to get people to feel like there had been a value exchange and just to continue building that relationship and and essentially convert them from a stranger to. Now there’s somebody that you kind of know, um you have some information about them. Uh Now you can actually ask them questions through email. You can ask them to donate. You can ask them, you can, you can escalate that relationship by giving them other items of value. Um that’s where that connect phase comes into play. That then you kind of escalate that uh, into the, into the bond face.

[00:31:39.84] spk_1:
Yeah. All right. so let’s let’s spend a little time with with connecting, you talk

[00:31:40.60] spk_0:
about the I’m sorry, Bond Bond comes first and then the connect

[00:31:44.98] spk_1:
so, you know, in the book, you have a track and then

[00:31:48.57] spk_0:
yes, you’re right, I apologize. Yeah, I got it, I got it all confused. My own,

[00:31:55.75] spk_1:
you are a co author of the

[00:31:56.91] spk_0:
book, right? I am Aaron,

[00:32:03.64] spk_1:
you’re not a ghost writer to the I mean he’s not your ghostwriter? No, you actually did contribute. Okay, so, we can wrap it up right now, if you’re not bona fide, you know, then that’s the end. No,

[00:32:10.31] spk_0:
your bona fide. Okay, so

[00:32:17.14] spk_1:
yeah, so connect um you talked about the consistency principle uh that people like to as you’re connecting to get people to say yes or taken action, say a little about that, I like that consistency principle. Can you define that for me?

[00:34:50.14] spk_0:
Yeah, so the consistency principle is really getting opportunities to to make sure that you’re being um intentional and consistent in your outreach. Um one of the things that we find people do is they tend to go in sprints and they’ll get really excited about about building a relationship or or creating opportunities for outreach and then they’ll do it for a little while and then they’ll drop off for for months at a time and um you know, essentially creating an intention and creating a commitment to uh to outreach and to these activities and then sticking with that is something that we we talk a lot about one of the things that people tend to do is they set their goals too high and they say, okay, I’m gonna, I’m getting all excited about this, I’m gonna, I’m gonna do a blog post a day and uh and then they look at that that goal that they’ve set and they say, I can’t do this and we have this tendency, people have this tendency to think that That missing a goal is a total failure as opposed to, you know, you got part of the way there. Um and so what tends to happen is if we set a great big goal and then we start missing that goal, we think, okay, well, I might as well do nothing because, you know, zero is as big a failure as 75%. So one of the things in terms of goal setting that we really recommend is starting slow, creating an opportunity to create a smart goal, something that you can actually achieve. Um and uh and and start to feel what a wind looks like and then, you know, as you’ve built that consistency, go ahead and elevate that goal a little bit as you as as you get better at it. So I’d much rather see uh one of our clients, um, you know, set a goal of of one blog post a month, if they’re not doing any, let’s do one a month, get good at that until that feels easy. And then then we can talk about doing two a month or, or one a week or even, you know, a couple, a couple of week. Um, but what tends to happen is people get really excited about things and say, I’m gonna, I’m gonna knock this out of the park and then they don’t, they haven’t built those consistency, um, habits and so things kind of fall by the wayside and then they end up doing nothing. But

[00:36:48.53] spk_1:
It’s time for Tony’s take two planned giving accelerator. I’m recruiting for the january class right now. If you’d like to join me, like to learn together step by step how to launch planned giving at your non profit planned giving accelerator dot com has all the information that you need. Of course, you could be in touch with me through the site, ask any questions you might have. The course is six months, you’ll spend an hour a week learning how to launch your planned giving program and not only learning from me, learning from your classmates, the other members who are in your class with you. The peer to peer support is phenomenal. The way folks open up, they ask questions about challenges. They’ve got, you know, I haven’t tried everything. So we, it’s open to the, to the class to help each other. I mean, I’ve got my ideas, but everybody’s got theirs too. And you get that peer support, One member says she calls it her safety net playing giving accelerator. So if you’re not doing planned giving or if you have like a more abundant plant giving program, which is really no program, you know, deep down, if you admit that there’s really just not a program. If you want to take a look at plan giving accelerator, I’ll get you going launch your program and grow it between me and your peers. It’s all at planned giving accelerator dot com. That is Tony’s take two. We’ve got boo koo but loads more time for purpose driven marketing and what’s happening in our relationship as we’re, we’ve moved from a trac to connect what’s happening there.

[00:38:28.22] spk_0:
Yeah. So in that in that attract phase, you’re essentially hanging your, your sign out and saying, hey, we exist, come check this out. And, and then in the connect phase you’re really trying to provide valuable information that enables people to, um, to take an action that gets them kind of deeper into the fold. So that’s one thing about email. People think for example, and particularly the nonprofit space email is an amazing tool. Um, yes, we all get a ton of junk email on a daily basis. And we also get a lot of non junk email but depending upon who your audience is and for non profits a lot of times that audience, particularly in the donor seat are kind of these people in the boomer, um age range, that demographic really still does rely very heavily on email. It’s kind of one of their chief modes of communication. Um They email is one of these places that feels like you have some control over it, you can kind of choose to read it or not read it, you can unsubscribe if you if you would like. So there’s a little bit more of a feeling of control with email and then also um this is a place where people have actually raised their hand. So it’s not just social media where you know maybe you got into somebody’s feed through some algorithm or or magically or got referred in, there’s a sense of people have actually taken an action. So that’s why we find list building and trying to create that connection and trying to get people into your um your your email list is a really valuable um component of this kind of four pillar system.

[00:38:45.72] spk_1:
And then bonding

[00:40:07.11] spk_0:
is next. Yeah bonding is really where your solidifying that relationship and you’re providing ongoing. Again, consistency is key here, ongoing opportunities for value driven uh exchange uh systems within the within the bond phase. So um we talked a little bit about this earlier in terms of creating opportunities to um to share information to share physical items to uh you know to provide people with solutions to their problems and in the nonprofit space this gets a little um a little I guess nebulous, it’s a little hard to figure out how uh to create these types of value exchange opportunities, but this is where mhm there are a few things that go into come into play here. One is if you can create an opportunity to position your nonprofit as kind of the guide in this story where your constituent your donor, your volunteer, even even the people that the beneficiaries are the heroes of the story and you’re just facilitating this opportunity for somebody for a donor to be the hero in this beneficiaries story that then creates this kind of experience in our minds where we we start to see ourselves as the as that hero and um and really feel compelled to continue uh kind of serving that role in that in that kind of relationship.

[00:40:57.51] spk_1:
You have a tip in the book. I think it’s mostly related. Well, no, not not necessarily to websites, but I’ll use the website example you say if some if you pre ask someone, if they want something, you get them to sit and they say yes, then at the next step they’ll be more likely to do the thing that you actually want them to do because they said you sort of you got them in the habit even though it was only one step, one step removed. You got them in the habit of saying yes, so they’re more likely to do the real thing that you want. Can you flesh that out a little bit? It was an interesting yeah strategy.

[00:41:10.11] spk_0:
It seems counterintuitive. I think that most people who have studied marketing have heard they reduce the number of clicks to purchase for example,

[00:41:13.22] spk_1:
don’t yeah, it’s possible.

[00:43:20.10] spk_0:
Yeah. And and this is where I would encourage nonprofits to try different things. But um the example that we believe I used in the book um was essentially instead of giving people a form to fill out immediately, give them a yet an actual action to take. So if you say would you like more information instead of just having, you know, this is an example instead of just having a form there where I put in my name and my email address and click, click yes, go ahead and say would you like more information? Yes, no and when people click yes, then it takes them to a page with the form on it and again it’s a little counterintuitive but the conversion rate on that form if you, if you put it behind that yes, no kind of gate yeah, it can actually be higher than the conversion if you just put the form out in front. Um there’s a interesting psychological thing that happens and one of my coaches, his name is Townsend Wardlaw. He’s a really great guy. Um he always asks per michigan before providing any sort of information. So for example tony if I had just sent you my book out of the blue without you asking for it. The likelihood that you would have done anything with that would be a much lower than if if I said, hey, would you like my book and you say yes and then I say okay and I’ll send it to you. Um, similarly Townsend always says ask permission, you know, would you like, would you like my help with that? Would you like me to share that with you? Um, you know, I have a story that I can tell about this, would you like to hear it? And, and that’s priming the pump for you to say no, I’m not interested. Which saves us both a bunch of time because now you don’t have to listen to me ramble on about a story that you weren’t interested in. And it also primes that pump for, for you to be even more receptive to the story once it’s once it’s delivered. So it works in, you know, not only in just marketing, but even in just conversational um, interactions.

[00:43:43.80] spk_1:
I’ve had folks talking about permission based soliciting for, for gifts, you know, in a couple of days, could I be in touch with you about investing in whatever you know, the work or the program that’s there of interest to them could be in touch, you know, in a few days on that. Yeah. Ask their permission. Exactly exactly in line with what you’re saying, you know? Yeah, that’s their permission and then be in touch in a couple of

[00:44:42.89] spk_0:
days assuming they said yes. Yeah. That’s, and actually a really great kind of cold call, um, tactic where instead of, you know, cold calls are very disruptive. So in the sales in the sale space. So for any executive directors out there, who are, who are, you know, soliciting donations from, from either, you know, big big corporations or, or, you know, seeking to get larger donors into the fold. One of the things that is more effective is to acknowledge that this call has been disruptive and try and get something on the calendar as opposed to trying to pitch them in that moment. And so similar, similar thing. You know, can I, can we, can we talk on Tuesday at, at three? Um, instead of saying, well, I’ll just jump right into the, to this thing that you didn’t actually ask me to pitch.

[00:44:47.87] spk_1:
Yeah. And you didn’t know what’s coming. Yeah, permission based I guess. I think Seth Godin has been talking about permission based marketing for years and it’s pervaded other areas. Yeah,

[00:45:00.35] spk_0:
absolutely.

[00:45:06.79] spk_1:
Yeah. Well, you know, why not? And you’re right. If the person says no, then you’re saving both of you the anguish of going through a, going through an exercise that neither one of you, it’s gonna be fruitless for one of you and the other person isn’t the least bit interested. So yeah. You want to do something that’s an interesting and fruitless.

[00:45:34.89] spk_0:
Yeah. And you’ve also created, you’ve created an exchange. Um, in terms of a back and forth. And so that’s, you know, that works as a um, you know, there’s a conversation that’s happened there. You listened. So you, you know, it positions you just a lot differently.

[00:45:37.12] spk_1:
You listened and you honored the person’s choice. So I I called you here. I am calling Tuesday at at four o’clock. Yeah. Alright. We’re inspiring. Next to

[00:48:12.27] spk_0:
separation inspiring. So yeah, after after this bond phase where you’ve actually gotten somebody to become a volunteer or make a donation or um, yeah, get get on your list of corporate sponsors or something like that from, from a non profit standpoint. Um The inspire phase is really where we’re attempting to get people to take another action. So um, there’s an old again kind of sales adage that it’s much easier to sell to someone who’s already purchased from you than it is to sell to somebody new. Um We tend to get really excited about new relationships and new sales tend to be the thing that get people excited. How many new donors did you bring in um, last year? You know, those, those types of things get get pretty exciting. However, it’s a lot easier lift to get somebody to donate again than it is to get to somebody to donate for the first time. So in the inspire phase, uh, you know, let’s just use donors again as an example. Um We’re really trying to get people to repeat and refer. Um, so get people to become a regular donor. Um, get people to donate again. Um, you know, thinking about escalation here and and again, if you think about your, um, you’re different kind of audience types and I do some volunteer work with volunteers for outdoor colorado and they’re a great organization here in state that does a lot of trail building and advocacy, uh, for kind of outdoor spaces. And I believe the first interaction that I had with their organization was as a volunteer. And so I decided I wanted to volunteer on a project and then I became a donor. Um, so essentially they gave me opportunities to, they inspired me. Um, you know, through not only all of the fun things that we were able to do during our, our, uh, our day of digging in the dirt. Um, but also, uh, you know, just just through all of the great things that they’re doing around the state, um, inspired me to become a donor and then inspired me to take an additional volunteer step to become a crew leader. And so essentially they’re doing a really good job of kind of escalating that engagement um, through this inspire phase. They also, um, you know, encourage all of their volunteers and all of their donors to share, uh, share their stories to, uh, spread the word about their organization. So that’s that kind of refer phase. So, you know, really

[00:48:30.47] spk_1:
like you’re doing right this moment.

[00:49:22.77] spk_0:
Exactly, yep, yep. Using them as an example of, of a great organization. Um, so that’s what, that, uh, you know, that’s where that kind of inspire phase comes into play. You know, getting people to evangelize about your organization, Getting people to, to, you know, share stories to come back to move from, you know, just giving you $10 at some events to giving you, you know, $10 per month. Um, so, you know, just getting really creative and staying in touch with people. That’s the thing that tends to happen is, um, you know, people fall off on the, on those activities because they’re, they are a little less, um, exciting than bringing a new donor into the fold. Um, but you know, really making sure that you have a referral program, you have something to get people to leave reviews, you get something, um, for people to share their stories and have a campaign associated with that, that keeps people keeps you at top of mind and then keeps people kind of coming back for more.

[00:49:54.57] spk_1:
You make the point of thinking about this as investment, not expense, not to look at the cost of a new cost of a donor acquired or cost of sale or something like that, but as an investment in the organization. And, and, and these relationships,

[00:51:17.76] spk_0:
we hear a lot in the nonprofit space would, particularly when it bumps up against marketing that any dollar that I spend that isn’t spent directly toward the core mission is a dollar taken away from that core mission. And we’d like for people to approach marketing for non profits a little differently where they see non they see their marketing uh, as an as an investment in that core message and an opportunity to expand and um amplify that message so that it becomes, it enables them to reach even more people. Um, and so that slight mindset shift can be really important when one starts to undertake marketing endeavors because, you know, it is money being, um, you know, coming out of the out of the program, but really making sure that you have to have a plan, you have goals, that they are reasonable, that you’re measuring that you’re tracking that you’re actually looking at this expense, um or this investment as uh, as something that’s going to grow your mission and and just keeping tabs on that and and making sure that you have those systems in place so that, you know that the, you know, whatever money you invested in marketing um, is creating a return on that investment.

[00:51:49.96] spk_1:
Yeah, yeah. Please get past this insidious myth. That myth of overhead, you know that marketing is overhead and technology is overhead needless, you know, these are investments in your future. You and I are talking about investments in relationships, relationships are only going to grow and as as folks refer, you talked about repeat giving and referring as folks refer you, the relationships are going to expand beyond what you can imagine, but it takes investment. So

[00:52:11.65] spk_0:
yeah, that’s why why having a system in place is so important and and that’s what, that’s one of the reasons I wrote Mission uncomfortable was to enable people to have some kind of understanding of a system in place for their marketing so that they could feel more empowered with that investment and and more comfortable with that investment that they’re making in in their outreach.

[00:52:19.05] spk_1:
That’s the perfect place to leave. It’s too

[00:52:21.05] spk_0:
well, thank you so much for having me on the show. Absolutely my pleasure.

[00:52:43.05] spk_1:
The book is mission uncomfortable. How nonprofits can embrace purpose driven marketing to survive and thrive. You get it at mission uncomfortable Book dot com stew Schweinfurt. The studio is the practices relish studio and he and the company are at relish studio and relish studio dot com. So all right now, I’ve just said the word relish 35 times in the past two sentences. Why is it relish Studio

[00:53:01.75] spk_0:
Relish Studio came about as a kind of a play on words where this is something that is that little extra spice on top that makes things extra good as well as something that we love to do. So you know, one of the things that really inspires me to work with nonprofit leaders is um just, it’s really easy to get out of bed in the morning and and work with these types of clients because we know that everybody’s out there trying to make the world a better place.

[00:53:28.45] spk_1:
That’s cool. It’s a great double play. Relish the condiment Condiment studio. Alright. Relish studio dot com stew. Thank you again. Thanks very much.

[00:53:36.77] spk_0:
Thanks for having me on

[00:54:20.45] spk_1:
my pleasure. Next week is a social enterprise for you. If you missed any part of this week’s show, I Beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Our creative producer is Claire Meyerhoff shows social media is by Susan Chavez. Marc Silverman is our web guy and this music is by scott stein, thank you for that. Affirmation scotty be with me next week for nonprofit radio Big nonprofit ideas for the other 95 go out and be great

Nonprofit Radio for November 29, 2021: How Much To Spend On Ads In 2022

My Guest:

George Weiner: How Much To Spend On Ads In 2022

“The Nonprofit Advertising Benchmark Study” will help you decide what’s the right amount for you to spend on advertising if you want to be comparable to your peers. At the very least, it’s a place to start your research on ad spending. George Weiner explains the study. He’s chief whaler at Whole Whale. Does that make him the Captain Ahab of nonprofit tech? Listen to find out.

 

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[00:02:18.04] spk_1:
Hello and welcome to Tony-Martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d suffer with odo toxicity if I heard that you missed this week’s show How much to spend on ads. In 2022, the nonprofit advertising benchmark study, we’ll help you decide what’s the right amount for you to spend on advertising if you want to be comparable to your peers at the very least, it’s a place to start your research on ad spending George winner explains the study. He’s chief whaler at whole whale. Does that make him the captain ahab of nonprofit tech. Let’s find out on tony state too. It’s the holidays and fourth quarter sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. It’s a pleasure to welcome George winner to nonprofit radio He is the chief whaler of whole whale, a digital agency that leverages data and tech to increase the impact of nonprofits and for benefit companies. He’s also a co founder of power poetry, the largest teen poetry platform in the US A safe creative free home to over 500,000 poets. George was chief technology officer of do something dot org. He managed the site overhaul twice. Winning a webby award and helped build a community of over a million and a half young people taking action. He’s an evangelist for democratized data and measuring success. The company is at whole whale dot com and at whole whale. Welcome chief whaler. How are you George

[00:02:21.24] spk_0:
wow, incredible intro. Thank you so much. tony Thanks for having having me on

[00:02:26.63] spk_1:
my pleasure, my pleasure. What’s what’s behind the company name? Whole whale which which leads you to be whole whaler. What’s that about?

[00:03:23.44] spk_0:
Yeah, we found it a decade ago and at the time the thought that struck me was ultimately the way that the nan, you know the Nantucket whalers in the massachusetts whalers in the 18 fifties would look at a whale and they would basically bring back lamp oil and throw the rest away in times of abundance. We tend to be a touch wasteful instead of using everything from the bluebird of the bone. And I took that lens and said, I felt like many social impact organizations weren’t looking at the opportunity to leverage data and technology and the rising web in that way. And they simply said, hey, hey, here’s the internet and the most powerful tool we’ve ever been given. Let’s put a donate button on it and call it a day. And so I kind of gave rise to how we view this time of abundance with an eye toward the best ways of leveraging data intact to increase the impact.

[00:03:57.64] spk_1:
Very interesting, very interesting. Uh you uh you drew that analogy between the two interesting. All right. Um, so are you the captain? Ahab, do you have a deep revenge? I’m trusting you know the story of Moby dick. Do you have anything deeply uh hurting you that you need revenge for? That’s going to drive the the ship of what was it the uh um The pick, watch the pick what it’s going to drive your whole whale peak watt into the ground.

[00:04:11.14] spk_0:
I’ve got a few white whales. Maybe I chase, you know, I got a few white whales maybe that I chase. Yeah. The other reason I found it all whales. Because of the nautical puns. I mean, you’re virtually swimming in them anywhere you turn and with regard to the things that chase, you know, the nonprofit ad study is one, but we like we go after interesting projects along the way. In addition to our our day to day work as consultants. We also develop products and try to put things out there in the ecosystem that help others do their jobs better. Or learn more about whatever field they’re wandering and so I can get distracted by a white whale or two.

[00:04:48.64] spk_1:
Okay, I see the navigate your helping folks navigate. Yes. The of course, the nautical you’re right. The uh nautical puns are are abundant.

[00:04:52.84] spk_0:
Yeah, they have to be they have to be

[00:05:05.44] spk_1:
navigate navigate the waters. All right. All right. So, we’ll see if your captain Ahab flush that out. See if you’ve hopefully you’re not going to do to uh to hold whale. What what the captain did too

[00:05:07.82] spk_0:
Made it 10 years so far. But I think that’s mainly because of an amazing team that basically just puts me in the right direction. Okay. It’s

[00:05:18.64] spk_1:
very gracious of you. All right. What is this this uh, nonprofit advertising benchmark study? What’s this thing all about?

[00:06:18.54] spk_0:
We wanted to answer a simple question and you know, never underestimate the power of a simple question because it can lead to, you know, a lot of, you know, threads essentially how much should a nonprofit spend on ads? This idea of advertising and promotion, it’s available technically informed nine nineties and with the help of cause I. Q. Which is a, you know, been a great partner in this. We analyzed seven over 7000 organizations to get that answer. And we chose organizations with a number of filters because clearly, you know, there’s 1.8 million nonprofits out there depending on how you’re sort of measuring the five oh one C threes and they’re like, oh that’s too many. And also, uh, you know, a third of them are not necessarily even over the threshold for reporting to the I. R. S. So we wanted to find 1 to 10 million in revenue organizations between one Million and 10 million and also met other certain criteria. And then we just sort of just, we dove in headfirst to to answer that question, how much should non profit spend on paid ads.

[00:06:36.34] spk_1:
Okay, so among your sample size of 7100 or so you you were you looked to see there’s I guess there’s a, there’s a line on the 9 90 that where folks where organizations report advertising expenses and that’s what, that’s what you were looking for,

[00:07:08.64] spk_0:
correct. It’s, you know, publicly disclosed because that’s, you know, the game and we look at that. So, you know, there are certain assumptions there that, you know, we note in the study of what that line is and what it isn’t. So it isn’t necessarily saying All right, this is the amount that people spent just on facebook ads or google ads. It’s advertising and promotion of the organization. So, you know, that could extend to people Paying for print ads. It could even in some cases, but we filtered it out for the most part include the cost paid to advertising firms to run ads. Uh, though many according to, I think the analysis, we didn’t hear only about like five or 10% in that range actually incorporated in there. And those are the outliers.

[00:07:43.14] spk_1:
Okay. Okay. And this specifically, thank you. Cause I was going to ask you about, you know, how, how we define advertising or how you define advertising this study and it specifically doesn’t include google ad grant money. Right? That’s, that’s different.

[00:07:58.84] spk_0:
Super important. Thanks for bringing that up. And it’s one of those sort of, you know, expert pieces there that it’s an in kind amount that doesn’t get reported on that line. Right? The google ad grants and you 10-K per month in money spent is something that would show up on your in kind value, not actual dollars out the door.

[00:09:03.04] spk_1:
Okay. Right. So it’s captured elsewhere. So it’s not part of the study here. Okay. Um, and so I was struck, you know, I’ve I’ve known that these that the vast majority of nonprofits are are smaller, you know, smaller revenue amounts. But I guess just reading it again, reminding me refreshing my recollection that uh, 93 a half percent of nonprofits are under $1 million dollars in revenue and and only 1.5% are over $10 million dollars in revenue. So that this this, you know, our universe of nonprofits, that this is not related to advertising, although, I mean, it is in terms of big words spend more on advertising, but that’s not my point. My point is just it just drives home that so many of our of our colleagues in nonprofits are organizations that are under $1 million dollars in revenue, 93 93 a half percent are under a million dollars, vast majority. Again.

[00:10:11.74] spk_0:
Yeah. And it’s important to note that, you know, because I think maybe in our minds or because of the narratives, we see large organizations and assume that they’re all like multimillion dollar, but like, this is the truth of it and that’s Yeah, that 1.44, exact five oh one c three nonprofit organizations and, you know, there’s a very, very small fraction of them that kind of live above that line, You know, like roughly speaking the same is kind of true in business ecosystems as well. You know, it’s hard to get to a million dollars. You realize that. But also when you look at the market how, how much of a long tail there really is. And we wanted to sort of remove that and say like once an organization has kind of, I mean not saying you’ve made it, but you were in rarer air, certainly after crossing $1 million you were running something that certainly has enough residents to to reach that level. And then we also filtered by age to be like, well, wait a minute. Maybe they’re like one night, you know, overnight successes or pieces like that. So we looked at organizations over under this century funded founded in uh, and and took a look at that as well. But it is, it is a curious point. We wanted to start with that context because I don’t think it’s given enough in the sense of nonprofit industry and you like immediately sort of have this availability heuristic meaning like I remember the last thing I saw and either it’s the red cross or you know, you know, pets down the corner saving one pet at a time.

[00:10:41.44] spk_1:
The availability heuristic. Thank you dropping that tech guy. You know, you have to, uh, well you, I’ll keep you out of jargon jail because you you explained it immediately

[00:10:47.03] spk_0:
go to

[00:10:51.64] spk_1:
The availability heuristic now it’s a good one. I love it. Uh huh. And you uh you flushed it out so folks understand what you’re talking about.

[00:10:56.23] spk_0:
I still will probably end up in jail though, won’t you

[00:11:10.64] spk_1:
didn’t do it? Well that could be we’ll see how we’ll see how the conversation goes. But you didn’t do it pretentious li like you know the all you would have available, all you, all you would have within your within your thinking at that point would be subject to the availability heuristic.

[00:11:13.34] spk_0:
Yeah. And then just leave it. Didn’t just leave it

[00:11:47.74] spk_1:
there and then make me ask and then make you flush it out. Which would have put you in jargon jail. So all right now because your availability heuristic. Thank you. This is a technology guy. Data data data guy, expect those things. I have a book like that. What’s that way out of this cool book from college. Alternative interpretations of data based conclusions. I think availability is in there. You know, uh confusing correlation and cause and effect. That’s a very common one. This is cool book. Can you show it to you

[00:11:50.24] spk_0:
what’s strong? I like that

[00:12:07.34] spk_1:
rival hypotheses. That’s what it is, rival hypothesis. Alternative interpretations of data basically. Okay, so enough pretense for now let’s talk about the study a little more. Yes. What stood out for you uh findings. What what what was most informative to you that and you think our listeners need to know?

[00:13:12.84] spk_0:
Yeah. The top line, I feel like we have that that cliffhanger is like how much should number I would spend. It’s like how much should we spend already? What’s the number? So I felt like we owed it to the audience to give them a number with a lot of asterisks and the number which is the median spend for our sample was basically $12,070. Which roughly equated to 5% of the median revenue as a as a ratio. So you know, knowing nothing else turning off the podcast right now you’re like, all right, we should be like at least considering that. and 60% of This sample, 60% were actually spending on ads or spending on advertising and promotion. I’m going to use that interchange of advertising and promotion and add but advertising activities 60% did and 40% did. Not. That actually surprised me. I actually really believe that there would be a lot more organizations spending. So you know that that was a bit of a surprise to me.

[00:13:16.87] spk_1:
Okay. Right. Not even not even 2/3

[00:13:20.04] spk_0:
are spot on your Yeah, exactly. Exactly on

[00:13:22.59] spk_1:
Advertising. Okay. And the median spend is 12,000 between friends. We can around the 70 away.

[00:13:29.35] spk_0:
So 12 spot me 70 12,000

[00:13:31.94] spk_1:
dollars. There you go. That’s that’s your

[00:13:34.30] spk_0:
feet for being option.

[00:13:48.14] spk_1:
Um uh And the average was, you know, it was interesting. The average was quite the average of like 4.2 million wasn’t the average was very highly skewed. Do you remember that? Right? It was it was something very huge.

[00:14:37.04] spk_0:
Oh yeah. I mean you had to throw out the average because of these outliers. There’s like these massive positive outliers and there’s some nonprofits out there that are spending quite significantly. And you know, you sort of begin to touch on lobbying. There’s like um, you know, there was a pro life America group up there and the millions of dollars and you know, that’s that’s not data that necessarily is going to help you, right. If Bill Gates suddenly walked into your boardroom, you’d all be average billionaires. Not helpful. Right. That that kind of insight is not helpful. So that’s why we chose the median. I’m sure it’s in your book of trying to avoid those mistakes. And you know, we we went through and tried to explain why we chose the numbers we did and also give access to the full data dashboard if people are interested in it.

[00:14:51.34] spk_1:
Alright, so, well, since you mentioned access to this, how do how do folks get the summary and I’ll be sure to say at the end, you can remind me if I don’t, how do you get the, get the, get the summary of the study.

[00:14:55.14] spk_0:
So it’s at a whole whale dot com slash advertising tried to make it pretty simple. We have a nice infographic there and the ability to download the entire report.

[00:15:05.74] spk_1:
Okay. And there’s a little fee there’s a $5 fee if you want if you want

[00:15:08.89] spk_0:
All this. So yeah the full data and dashboard if you want to go digging into it. Um and getting access to that. Yeah that’s the $5 fee. But you get the whole study which is you know 21, pages of awesome. That’s you know that’s available

[00:17:05.14] spk_1:
right? That’s free. That’s absolutely free. Okay. Hold well dot com slash advertising it’s time for a break. Turn to communications. Are you making your plans for 2022 for fundraising? Marketing communications. Do you need help Look at turn two? If you’re like if you’re thinking about fundraising you need to raise more money in 2022 marketing and communications. Your content, the stuff that goes out all that that you’re creating for your donors for general awareness. If you need help with it, think about turn to because that’s what they do. They have a background in non profits. They understand the nonprofit community so you’re not you’re not hiring an agency that only works with you know cos they understand the nonprofit space. They can help you develop your content, help you hone those messages, Get those messages out like you’ve been hearing me talk about, right? So if you need to raise more money or if you need to go to the next level in marketing communications In 2022, think about turn to because your story is their mission turn hyphen two dot C o Now back to how much to spend on ads in 2022. uh, the, the 80 20 rule applies here is one of your, One of your takeaways that uh, the top 20% spend about 80% of the ad revenue. Yeah.

[00:17:06.54] spk_0:
It always seems to happen and I always seem surprised when I find that power law, right? The 80 20 shows up on like

[00:17:21.64] spk_1:
how again does it keep happening time after time after time for in a wide variety of applications, 80 20 applies. How is our world,

[00:17:57.74] spk_0:
especially in actually, especially in financial distribution. But I was actually, I did the analysis. I was like, it probably won’t in this case show and I was like, you gotta be kidding me. So it wasn’t exactly 80 20 it was 24 76. So that’s about 24% spent 80% of that ad spend coming back to your point on average is being like much higher than in a potential bit misleading. So you do have that handful of organization spending quite a bit and the top 13 organizations in our study spent over a million dollars. So you kind of see that heavy, heavy waiting. And if it’s like, all right, you know, the purpose of our organization is the public awareness of this particular issue. And the way we do it is just turned donations into advertising and they’re nonprofits that just do that And they skirt the line awful close to lobbying, but they stay this side of fair.

[00:19:23.04] spk_1:
Okay. All right. Um, and you know, it occurs to me to this is, um, you know, you’re stuck with a lackluster host who is, whose thinking is not, uh, completely linear at all times, uh, if ever on that. But, uh, this is not, this is not a survey. So we’re not, we don’t have biases across people giving what they think is a good answer. You know, we don’t have those. So that just goes back to my book, the rival hypotheses, you know, self reports, not self reported data. Um, you do have the problem, like you said, you had to correct for whether people use agencies to produce their ads, but you were able to sort that out. So there’s, there’s some potential differentiation in, in the way people report organizations report advertising on their 9 90. But overall this is more reliable than survey data.

[00:20:13.84] spk_0:
Yeah. And I’m glad you brought that up. This is, you know, reported. So, I mean if you get back down to it, Yes, there is a human somewhere in the financial department of this non profit making that decision, but they’re doing that at a very macro stage and we’re pulling raw data were not wandering in and saying, Hey, how much do you spend on ads and you know, looking at, You know, 250 random nonprofits that decided to randomly fill out a survey with limiting information or you know, not being wanted to be fully transparent for whatever reasons. This is you know, this is source data from the organization according to the I. R. S aggregated by cause I. Q. And then we analyzed it to really find those answers and it’s something that we just felt was lacking. We felt like there was a lot of uh, we’ll call it a qualitative As opposed to quantitative type of research out there being like, Oh, here’s the official number. And then you look at the fine print and realize it was the opinion of 60 people not problems. And I’m like, I don’t know

[00:20:33.14] spk_1:
a lot of the answer. A lot of times people say, well it depends, it depends. So you’ve drilled down more than it depends.

[00:20:58.94] spk_0:
We’ve drilled down more and also been able to look at individual cause areas. So not just lumping one of my, one of my watchwords is being careful of lumping together the entire industry into one tidy bucket and assuming they all behave the same way. And if you know one nonprofit, you know one non profit and so we actually have, you know, in one of our findings divided up The type and cause focus of the organization to kind of get a better idea in that distribution, which tells, you know, another different story, which is all the more to say. I, I hesitated but knew we dessert we we owed the audience an answer of $12,000. But even that can be misleading depending on the industry and sub industry weren’t

[00:21:34.94] spk_1:
well, like arts organizations for instance, spend the most right. That’s what you’re, you’re, you’re teasing us a little bit. But I don’t do that to nonprofit radio listeners. You can, you can attempt it, but I won’t allow it. So, uh, let’s, uh, so arts organizations spend the most on advertising, right?

[00:22:15.54] spk_0:
Organizations were the highest spender. Again, surprising to me because I actually thought it would be health, I thought would be the health industry spending, you know, more to research awareness and pieces like that. But you know, frankly at the end of the day, you need to get people to attend to show up to, you know, go to these, you know, one time events to museums on location and so these, these were the highest highest spenders for sure. And promoters of performing arts sports and similar events were at the top and then the lowest, you know, because you look at the high and low, we’re less surprisingly the grantmakers and giving services like if you’re giving grants, guess what people find Jack, If you’re writing checks, people, people

[00:22:42.04] spk_1:
find you events, you, you you, you teased out what ad spending does too event income and I’ll let you, I’ll let you reveal what was found.

[00:22:46.44] spk_0:
Yeah, this is a bit of a nothing burger on the face of it because I had, here’s a case where I went in with maybe a touch of an agenda. I had an agenda. I’m going to admit it that I thought if a nonprofit was spending research, going

[00:23:03.00] spk_1:
back to my book, researcher bias.

[00:23:38.74] spk_0:
Yeah, this was researcher bias. But I left it in because I was so surprised that the ad spend of a nonprofit did not correlate. Uh, mind you even causation that didn’t even correlate in any meaningful way to hire event income. So event income is another thing technically reported by non profits in the 990 that you can pull aggregate and analyze. I’ll put an asterisk there, there are problems with that reporting which may be impacted this. But ultimately there was no correlation at all with this idea that or eggs without ads and with ads had any meaningful difference in the amount raised with event fundraising.

[00:23:56.54] spk_1:
Okay, Alright. Clearly you had, you had a hypothesis because that’s why you pulled the event income Data off the 1990s.

[00:25:03.44] spk_0:
Yeah. I mean, my hope was to show like I had, I had to hope that we would show that guess what if you’re spending to promote your event, your event does better And therefore an aggregate. They should be the folks that are making more money, you know, when in fact, you know, the of our, I can give some context with the data size. Uh, about 68% of our group had listed event fundraising expenses and 58% of that group reporting event fundraising revenue from their form nine nineties. So right in there, you’re like, wait a minute. They didn’t all make money, nope, just events that happened. Right? So I think it’s important. Not all events have maybe the purpose of fundraising, but that’s where they get listed. There’s also the question of in the accounting department, did that gift of $100,000 that came in five days after the event? Did that go to the capital campaign or did that go to the fundraising event? There’s a lot of mushiness there. So, you know, I’ll blame it on the data, but I wanted to report it because it was something that sort of keep us honest moment.

[00:25:09.32] spk_1:
Yeah. Okay. But it’s valid. You reported as a finding. So

[00:25:13.12] spk_0:
like we. Did you believe it? Believe it. Ok.

[00:27:30.84] spk_1:
It’s time for Tony’s take two. It’s the holidays and it’s the fourth quarter. The holidays. I hope you enjoyed your thanksgiving time with family, friends. Time for yourself. These things are important. You’ve got to take time to rejuvenate yourself to relax however you you know what’s best for you, however you do that for yourself. However you relax. It might be some people, some people relax by, you know, adrenaline rushes and uh, you know, zip cordon however you relax. I hope you did it over thanksgiving and I hope you will continue it throughout the holiday season. We’re in the midst of Hanukkah right now christmas coming up whatever your holiday is. I hope that you will be good to yourself as well as of course your family, loved ones and friends that you’re getting together with and it is the fourth quarter. So there’s a lot of pressure. I know vast amounts of, of fundraising revenue come in, not only the fourth quarter, but even in just in december. I know. So I know you’ve got those pressures. What am I talking about? Balance, balance, take care of yourself so you can take care of your non profit Please do both please for the holiday season this year. That is Tony’s take two. We’ve got boo koo but loads more time for How much to spend on ads in 2022, the older organizations, older organizations spend more then then I’m sorry older organizations spend, uh, less likely to spend. I was thinking of larger. I was thinking of size, not age, older organizations spend less. That that seems to make sense. There are, when we presume that older organizations have have greater, uh market awareness because they’ve been around longer.

[00:27:59.74] spk_0:
I guess the, I love this take away, this was actually, I have to give credit to Kobe on our team who ran the ranch and manage this analysis. He just, he was like, I would love to look at the date funded because the underlying hypothesis here is that older organizations that were incubated and created in a time frankly pre web 12. Oh, would see less value in their operating less value in paying to play in creating ads and creating advertising. Oh, that’s

[00:28:14.34] spk_1:
the hypo that you think that’s the car. They haven’t adapted to our digital ad environment.

[00:28:15.80] spk_0:
I mean it’s, we call the rising generation digital natives. Right? How much time do you spend on Tiktok? Like there’s, I think there’s a fundamental reality.

[00:28:24.88] spk_1:
I’ve never, I’ve never been there. But they can hire people, I don’t need, I can hire somebody to do Tiktok for me to watch you George. That’s so cynical about older organizations. But let’s all right.

[00:28:40.44] spk_0:
You’re right. Let’s, can we, we can tell them the numbers though. It wasn’t that massively off. I will always say that. Um, the,

[00:28:41.84] spk_1:
alright, let’s start with, what’s an older organization. How did you, how did you group or cluster or how did you define age?

[00:28:48.66] spk_0:
How did I unfairly categorize this poor lined group of nickel. They

[00:29:03.74] spk_1:
Are capable of even hiring people to do something post 1950. I mean these these folks are still watching black and white television and some of them are still listening to silent movies in your mind.

[00:29:07.04] spk_0:
Uh, that side, the set with this century. So it’s over under year 2000, which I thought was an interesting inflection point and also it’s nice and round. So

[00:29:17.86] spk_1:
There’s a whole bunch of before 2000. Okay.

[00:30:20.54] spk_0:
Oh yeah, no, no, I think That, I mean it’s a long swath of time to look at and you know, the difference is really that this uh in last century 41% had no ads versus in this century 37%. So you know, 4% points total difference in just the binary decision. Should we have that ads, advertising and promotion? Um and then the median spend of this century was not that much higher, but it’s about 400 ISH, $400 higher uh simply by nothing else controlling for everything else, right? Like nothing else. You just, you’re just going to spend a little bit more if you are going to spend and you’re more likely to be spending on that. So it wasn’t mine, I kind of wish there was a bigger differential. So it’s actually much tighter than, and I have to, I have to say the counter narrative here is that do something dot org, one of my alma mater’s uh what Founded in 1993 and still had a well well above average as fund. So they are like the outlier that I didn’t even have to take that long to find.

[00:30:38.34] spk_1:
It’s impressive that you were the chief technology officer and do something that’s uh that’s a, that’s quite a renowned organization for What, what’s their sweet spot, 14-17 or 14-18 or 14-20 year olds taking, taking action and all the data that you gathered from them. That’s uh that’s quite a, that’s quite a job to have had. It’s impressive.

[00:31:17.44] spk_0:
It was an interesting time to have that role. I’ll say that for sure because there was a lot of, you know, a lot of tech being just sort of introduced web to, oh, just becoming of age, you know, you look at facebook pages and that existing for the first time in that period of time being like, what do we do with this now? I don’t know, what do we do? Like there was a lot of like, have you used this thing, you’re like, oh God, what is this thing now that I have to go figure out and then building our own platform as well and then sort of, you know, data privacy and protection and jumping in? I’d say the biggest piece we figured out was SMS in that period of time, the power of text messaging, which is still, you know, widely under appreciated, I’d say in the social impact sector. I do take, you know, huge nod of the hat to twilio dot org and what they’re doing out there, but it’s a, you know, it was an interesting time to be the cto

[00:31:49.34] spk_1:
and what was the the prime age group for? Do something? I was trying to guess, I was like 14 to 18 or something. Yeah, it’s

[00:32:15.14] spk_0:
extended, you know, I think they would extend it to through college age, but there’s like different sort of calls to action along the way. While I was there, we were predominantly focused on teens and tweens and that sort of intro level to volunteerism and engagement to foster a lifetime of social engagement. And and since then they’ve really evolved because guess what? You know, if you know, if you have half a million people that are of this age, it’s silly to say like, all right, goodbye, Good luck. I’m like, yeah, we can still provide services. We can still provide ways for them to engage. So it’s kind of an interesting quandary. I think for a lot of youth focused organizations to be like, where do you draw that line?

[00:32:53.54] spk_1:
Well, and because eventually those folks are gonna turn over 45 and then they’re just gonna be dinosaurs. Like like you hypothesized about the older organizations so you better get all the data you can now or you know, do something better because once, they once they turned 45, I mean they’re practically dead and they can’t adapt. Their their minds

[00:32:55.86] spk_0:
are impossible.

[00:32:57.15] spk_1:
Yeah. Their brains are neck roast it.

[00:32:59.63] spk_0:
Well actually, no, not completely, but maybe 4% more of them. Like 4% points. four

[00:33:04.59] spk_1:
percent. Alright. Yeah. Good. Thank you for bringing us back to the survey study. So we’re not a servant to the study, definitely

[00:33:11.63] spk_0:
stepped in it. I’m sorry.

[00:33:22.84] spk_1:
So uh let’s talk about what I what I had confused with that larger larger organizations. What did you find out about that? That’s that’s it.

[00:34:56.04] spk_0:
Well, I think the interesting thing is not that hey, surprise larger people with more money, spend more money. This just in from things you probably already knew uh is that it’s the same ratio. So that sort of golden ratio of 5% of revenue just paired out for small and large organizations. My assumption there that I went in there with a sort of hypothesis was that The smaller organizations would probably disproportionately spend at a higher ratio, but it didn’t turn out to be true. So in fact, that sort of 5% of revenue held across large and small organizations, albeit yeah, large organizations spent more. So if you do like if you just take away a quick thing, you could accidentally assume that oh, large organizations got big by spending more. You’re like, well no, they’re larger and they still spend at that ratio, which is in and of itself interesting because it is a much bigger number. And between those two groups where we divided it between large and small, which was over under I should note small organizations being 125 million. So small and 5 to 10 million. So we just basically through the line down the middle and it just equated to the large organizations had a median those three X. In terms of revenue three X. The amount that the 1 to 5 did and that was the same ratio three X more in ad spend. So you know, if you were doing lazy reporting, you say like large organizations spend three times the amount you’re like, Yeah, but that’s just a symptom of numbers. Okay, okay.

[00:35:04.24] spk_1:
And employees, you also, you also tracked the number of full time employees at, at organizations.

[00:35:06.54] spk_0:
Yeah, this was a bear. Would

[00:35:08.42] spk_1:
you find related to? Why is it a bear?

[00:35:17.44] spk_0:
It was a bear. It was just really difficult to do to like segment based on, you know how many employees and they’re simple.

[00:35:18.71] spk_1:
Isn’t there a simple question on the 9 90 I’m not an accountant. So I don’t

[00:36:07.13] spk_0:
know the total number of employees is technically available. So we were able to grab that number and then parse it out. It’s just parsing it between under 55 to 9, 10 to 14 employees, 15 to 19 employees. Uh and sort of scaling that up. The biggest jump happens really from, you know, organizations with less than five employees just aren’t really spending on ads. And the hot take there is that, you know, surprise, it takes people to run the ads running ads and promotions takes dedicated, you know, person or part of a person to truly run. And then as you sort of scale up, you have like random ebbs and flows, but the biggest jump really is that like if you have an organization with under five people, um, they’re really, they’re nowhere near that median ad spend because they come in at like uh 500 bucks versus immediately get to $2000. Um, once you get 5 to 9 and then the next biggest jump, you know, happens once you’re over 24 people, just larger organizations

[00:36:42.33] spk_1:
acquaintance with what goes into this, what why it takes you just said it takes a person or at least a part of a person for organizations that aren’t doing this for the, for the, Well for the 60% that that aren’t spending, what what did they have to devote time to?

[00:36:47.93] spk_0:
It is the most valuable asset of nonprofit has its not the revenue, it’s the time of the people working and to run an ad on facebook to place an ad in the paper. Let’s say if you’re running to place an ad on this very podcast, it takes time for someone to email setup, established the price, manage and test the R. O. I.

[00:37:34.53] spk_1:
It’s not create uh an obstacle where it doesn’t exist. All you have to do is email tony at tony-martignetti dot com. If you want to be a sponsor of nonprofit radio it’s quite a fluid process. George’s referring to George is referring to a university is not that well acquainted with right. This study is not on podcasting advertising When, when he does that one. I hope I will be a part of it. But uh, the, the, I don’t know about the podcasting universe, but if you want to be a sponsor of nonprofit radio it’s a very fluid, easy process. You’re talking directly to the host of the ceo. Just

[00:37:44.47] spk_0:
email you, do it right now. We can do it right now.

[00:38:00.62] spk_1:
Yes, you can do it right now. Whole whale. If whole whale was a sponsor, you would know how fluid and simple it is. But you haven’t taken, you haven’t taken that leap. So all right, let’s not go outside the bounds of the study as we’re, as we’re trying to draw conclusions. So

[00:38:16.22] spk_0:
We take, you know, we sort of take it as sort of maybe a core number that, Oh, you know, we can spend $12,000. A median number, but it doesn’t happen by itself. I mean, nothing simply does. So that that type of ad management was in the back of our mind saying like, you know, you have to track the R. O. Y. You have to create the report for the boss. You have to set up the landing page or whatever it may be that you’re running ads for. It’s not just as simple as saying like, oh cool, no problem. You know, through your credit card over there and you know, let it run. So that’s the thought that it takes labor to implement ads

[00:38:39.72] spk_1:
and your study makes the point that even if you’re hiring someone to do the ads for you. You need someone to oversee the work of the consultant or the firm.

[00:39:07.32] spk_0:
Yeah, I mean the numbers bear out that, you know, it definitely tracks as you go up in a number of employees, um that you’re, you’re able to see a higher spend. Now. That’s also corollary to the amount of revenue. But we also show that along the way, which, you know, incrementally increases but doesn’t necessarily follow along with the differences that you see. So, you know, I don’t purport that this study will show you how to set up your advertising department. But it will tell you that you can’t assume this thing happens in a vacuum and without labor.

[00:40:03.11] spk_1:
Yes. Okay. Well, and you’re a digital uh, advertising agency in at least in part, how much of a full time employee would you do you estimate it would take for? Well, it doesn’t really well for a smaller organization, let’s say they let’s say someone has just 10 employees or fewer like what, how many, what percentage of a full time employees time would that size organization Spending on ads if they were gonna move themselves from the 60% that don’t advertise at all to the 40% that do

[00:40:20.81] spk_0:
an interesting framing there. If you had 10 employees according to a study, you’d have an average revenue of roughly call it 2.3 million your median ad spend for that cluster would be $2100 and You know, oh, that doesn’t require a full time employee. But it’s gonna take about, you know, 2100

[00:40:28.61] spk_1:
That’s in a year. That’s 2100 a year. Yeah. So you’re just spending a little under $200 a month.

[00:40:40.21] spk_0:
I mean, Yeah, I mean and and and 2000. Yeah,

[00:40:42.12] spk_1:
22,000, exactly. 200 a month will be 2400 a year. So you’re saying 2100. So

[00:41:49.21] spk_0:
Yeah. So for that number that’s, that’s easily managed in 10% of somebody’s time depending on the type of Advertising activity that you’re doing. The hope is that that allows you enough to test where there’s value and increase that number, ads can be spent for a number of different reasons. And this is getting back to maybe why my assumption on fundraising was so flawed is ads may be spent to spread awareness of a topic a theme to increase public awareness. I don’t know for vaccines for health research, it’s not necessarily direct 1-1 ratio with fundraising. However, and if you are able and you are trying to turn one ad dollar into two donated dollars and you figure out a way to do that. It’s the hope that spending that and having somebody paying attention to it may figure out a way to get a bit of a little bit of a money engine going for you, spending adds to increase donations to the organization. And that Is a hope of this study. It is a hope that you’re saying, you know what it is worth, frankly 20% of someone’s time to play around with some amount of money that would let us learn and then do more of what works.

[00:42:29.30] spk_1:
Okay. Okay. That’s a pretty good wrap up actually. But I’ll give you a chance to to make it official because we’ve, you’ve covered all your explicit findings in the, in the study which folks can get at whole whale dot com slash advertising very appropriately named simple. Uh, simple U. R. L. Whole whale dot com slash advertising. What would you like to leave folks with George?

[00:42:33.10] spk_0:
I think that point lands hopefully. Well, and I haven’t offended any older organizations out there from which only only older,

[00:42:41.44] spk_1:
only older people. You haven’t offended any organization, not just the older people

[00:42:45.18] spk_0:
For 4% of them. Right.

[00:42:48.60] spk_1:
Well, that was, that was a differential, but it seemed

[00:42:51.50] spk_0:
Like it was 100% of those people were offended before.

[00:42:56.31] spk_1:
No, no, no, no. The way you did it, it was, it was wider.

[00:42:59.55] spk_0:
It was

[00:43:00.19] spk_1:
good

[00:43:00.78] spk_0:
differential. I

[00:43:07.30] spk_1:
understand the differential was 4%. You didn’t offend only 4% of People over 45. Now you offended most of us.

[00:44:35.79] spk_0:
That’s, that’s pretty good. Well, I’ll be joining you shortly so I can, I can join in the offending club. I uh, I will say that there is a lot to, to dig into here, but it is really meant to be an asset for anyone making the case in an organization to say, Hey, why don’t we try this? Why don’t we try to spend? It seems like our counterparts that are in this field are doing so in learning and so if you’re not spending, you’re not learning. And when I look at platforms, social platforms, that purport to be, you know, ways for you to get this organic traffic that will magically come to your site. So if you are posting, for example, on facebook, on instagram, frankly on most social platforms, you are losing money because the platform truly for for non profits for companies. Social media platforms are advertising platforms first and social platforms. Second, one more time. If you are a company, if you are a non profit Social Media is an advertising platform 1st And in an organic social network. 2nd, possibly distant second. Depending on which one we’re talking about. And so it’s like sending somebody in your communications remarketing department to work without a computer by not saying, hey, here’s a bit add money to play with and learn what might be possible for us. So that’s, that’s the thought I want to leave you with. I think.

[00:45:10.89] spk_1:
All right and not just me. All our listeners. Thank you. He’s George wegner He’s the chief. Well, at whole whale, whole whale dot com hotmail dot com slash advertising for the nonprofit advertising benchmark study. If you’re on twitter there at whole whale, thank you, George. Terrific. Thanks for sharing and thanks for being a good sport captain. Ahab. Mhm.

[00:45:11.69] spk_0:
Thanks Tony. Thanks for having us

[00:45:42.49] spk_1:
next week purpose driven marketing. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. And let me remind you how simple it is to be a nonprofit radio sponsor. Just email, tony up, tony-martignetti dot com. Our creative producer is Claire Meyerhoff

[00:45:57.79] spk_2:
shows social media is by Susan Chavez. Marc Silverman is our web guy and this music is by scott stein, thank you for that. Affirmation Scotty be with me next week for nonprofit radio big nonprofit

[00:46:15.59] spk_1:
ideas for the However, go out and be great.

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Transcript for 567_tony_martignetti_nonprofit_radio_20211115.mp3

[00:00:02.84] spk_1:
Hello

[00:00:10.84] spk_2:
and welcome to

[00:03:09.04] spk_1:
tony-martignetti non profit radio Big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d suffer the embarrassment of hydrogen itis security Eva if you rubbed me the wrong way with the idea that you missed this week’s show, Bitcoin and the future of fundraising. That’s the new book by ANn Connolly and Jason shim They share the potential in Cryptocurrency donations and explain simply how to get started private keys, public keys, wallets and exchanges. It’s time to learn what’s inevitably in your nonprofit’s future. I’m tony state too, Veterans Day, We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o here is Bitcoin and the future of fundraising. It’s my pleasure to welcome co authors to nonprofit radio and Connolly is faculty at singularity University. She’s worked at Doctors without Borders and been a member of their board. As director of fundraising at Dignitas International. She set up one of the world’s first Bitcoin donation programs and is certified in strategic disruption from Harvard business school, Which sounds like a degree in anarchy. We’ll talk a little about what that what that’s about. She was named one of Canadian broadcasting corporations. 12 young leaders in changing. Canada and one of the 50 most inspirational women in technology in Canada. She’s at an underscore Connolly and welcoming back Jason shim he’s director of digital strategy and transformation at pathways to education. Canada his experience spans the nonprofit and academic sectors helping organizations stay ahead of the technology curve In 2013, he led pathways to become the first charity to issue tax receipts for Bitcoin donations. He’s an editor at ledger, a peer reviewed scholarly journal at the University of Pittsburgh Pit, publishing original research on Cryptocurrency and Blockchain technology. Jason is on the board of intend where amY sample ward, our listeners know her is Ceo and Jason is at Jason shim together they wrote the book Bitcoin and the future of fundraising. A beginner’s guide to crypto, crypto currency donations and welcome to non private radio Jason. Welcome back.

[00:03:12.14] spk_0:
Thank you so much.

[00:03:13.50] spk_2:
Thanks for having us.

[00:03:52.24] spk_1:
It’s a pleasure pleasure to have both of you. Uh and let’s start with you, the the Cryptocurrency is like a new technology like at one time the telephone and talking movies, right? Talkies and the T. V. And internet and cell phones. Uh these technologies all had their their naysayers and those who thought it was just a fad, you know, talking movies, those will never last. So what do we what do we say to folks who are naysayers. Uh thinking that Cryptocurrency maybe it’s just a fad or it’s too dangerous. How do we allay those concerns about this new technology,

[00:04:43.64] spk_0:
It’s very reasonable for people to be nervous about new technology. I mean I can remember my parents talking about the Internet back in, you know the early to late 90s and saying, you know anyone will be able to look up the recipe for a bomb like we need to stop this, this is dangerous. And you know, that’s true in today’s world, anyone probably could look up the recipe for a bomb, but no one would ever consider saying we should stop the Internet. It’s a bad thing for society. Um And I think that’s where we’re at with cryptocurrencies as people are still in that phase where they’re learning about maybe some of the scarier elements. Uh and they haven’t quite gotten to realizing just how powerful and incredible this technology is, both for themselves, but also for society and people around the world who might not have access to the same financial services that some of us do.

[00:04:53.64] spk_1:
Yeah, that’s a very interesting point. Uh let’s say a little more about how this can be liberalizing for a lot of folks, a lot of parts of the world where banking infrastructure is not something they take for common or, or financial infrastructure broader than just banking is not, is not something that they take for granted the way those of us in the, in the west do.

[00:05:43.04] spk_0:
Yeah, I think there’s two sides that really is for many of us in North America, we have easy access to banking services and um but even in the states, more than 25% of people are unbanked, they don’t have access to that. And when you look around the world, those rates are even worse and so many people just operate in a cash economy, it means they’re locked out of any sort of loan systems or being able to better themselves through more formal financial services and then there’s a whole set of countries where people can’t even trust their national currencies. So if you look at places like Argentina, Iraq Venezuela, sorry Iran where inflation is astronomical Even right now in Canada, inflation is more than 4.5%. But if you look at Venezuela in 2018, their inflation rate was hundreds of millions of

[00:06:08.39] spk_1:
was not more hundreds of millions or billions of percent. Yeah,

[00:06:53.04] spk_0:
it was wild. And so you know if you can imagine your life savings disappearing overnight simply because the government is printing too much money or isn’t a good custodian of the national financial system. That’s the reality for a lot of people. And so I think when I think about Bitcoin more than anything, it’s not. Its goal is not to replace national currencies. Its goal is to provide people with choice so that you know, if they’re really happy with the currency their government is providing, they can certainly use that. But if they don’t have access to it, they don’t have access to banks or they don’t trust their government to do a good job of managing their money. They have another option. And that’s what for me is so exciting is it’s this global permission list system where anybody can take part um and use it to fundamentally change their lives.

[00:07:10.44] spk_1:
So Jason is it is it as simple as just needing an internet connection for anyone in the world to to participate in in cryptocurrencies?

[00:07:12.44] spk_2:
Yeah, I mean that’s pretty much the foundational building block that you know, if you have access to an internet connection and you can download, you know, the uh you know, there’s a few different approaches of accepting Cryptocurrency. But yeah, it starts with an internet connection in terms of getting getting access to that that wider network for sure.

[00:08:05.44] spk_1:
Okay. Um uh the uh I did a quick search of just comparing the us and Canada and adoption rates are much higher in uh in Canada than than in the us. I found like 13% of Americans Have bought or traded Cryptocurrency but it’s it’s like 30% of Canadians. So much much wider adoption for our well for your country, for our neighbors here, for me, for our neighbors in the north, for for your country, for the two of you, any any explanation as to why it might be 30% in Canada vs just 13 in the us.

[00:08:09.94] spk_0:
I think what might be Oh sorry, go ahead.

[00:08:12.24] spk_2:
Go ahead. And

[00:08:12.63] spk_1:
I

[00:08:48.84] spk_0:
think what’s even more exciting really than comparing the United States and Canada is looking where it’s growing globally. You know, some of the greatest adoption rates are in places like Nigeria or South east Asia. Um and that’s really demonstrative of, you know, when you have locations that maybe aren’t providing the financial services that we have in north America, the rates are exploding um from a Canadian perspective, I know people are really keen to explore new technologies and we also have a massive immigrant population that wants to send money back home. Um so trying to find mechanisms that enabled them to do that without paying fees of 8-12% through Western Union. The coin is a really great option for a lot of those people.

[00:09:28.14] spk_1:
Mm hmm. Alright. Uh now and I was, I chose you but you didn’t answer. You didn’t answer the question. So I’m gonna try Jason although it was anarchist. Uh that is that the degree in anarchy. I knew it. Um what is what we call it? A strategic disruption. Alright. The anarchy degree or certification. So uh, Jason any, any, do you have any insight into why so much more widely adopted in Canada than the U. S. Not that what I said was not valuable. I, I appreciate what’s happening in *** et cetera. But I just wanted to bring it, I don’t want to try to bring back to to the north America here.

[00:12:01.94] spk_2:
Yeah. In terms of adoption rates like what I found over the years is that, you know, when, when tech companies in the past have been looking for like pilot areas that I, I know that Canada has stood out as being, you know, the place where, you know, um, initial kind of rollouts or pilots that have happened. So, you know, when I know that when, you know, folks are testing out like new apps, you know, for their organizations, it’s a multinational organization, it’ll tend like what I’ve observed is that it has tended to be uh tested in Canada first and I, I imagine, you know, that may reflect, you know, that it’s a fairly, you know, uh text avenue connected, you know, uh population, but also uh there were some hotspots for Cryptocurrency, you know, in its early days, I mean, ethereum was born out of Toronto battalion, peter in is, you know, Canadian the founder of ethereum and uh there there are several clusters in Canada that, you know, a lot of the initial developments encoding around, you know, Bitcoin and ethereum and subsequent projects uh I think really grew out of that. So I think what we’re seeing in terms of the increased adoption rates is an extension of that where uh you know, not unlike, you know, early silicon Valley where, you know, a lot of, you know, tech development happened there that, you know, for, I think the early 20 tens, um uh Toronto really served as kind of, that, that initial hub in those communities that really got engaged, so no surprise that, you know, subsequent, you know, companies emerged and uh, you know, adoption uh may have been a bit quicker here. Um, but you know, I think that we are seeing that definite dispersion where there are multiple uh you know, crypto hubs that have emerged in the last 10 years for sure. But yeah, I mean Canada is also a wide place of you know being able to send uh send payments um easily and by a practical example and this isn’t particular to Canada, you know specifically, but you know when when working in international context, you know, hearing from, you know developer contacts in the local community that when you’re considering paying developers overseas and all the options that available like Bitcoin is emerging as you know uh when uh when when speaking to folks about you know how they’re managing payments, you know, Bitcoin is often an easier way to pay um developers in other parts of the world than it is going through traditional payment mechanisms um because of that the lesson administration and at times even just the availability where you know trying to pay someone, we’re banking systems are limited, you know, as I mentioned earlier. Uh so I think all these things combined have contributed to higher um you know, Canadian adoption as you pointed out.

[00:12:39.04] spk_1:
Yeah, interesting. All right, thank you. Um so you mentioned ethereum or ether being the the second most popular Cryptocurrency behind Bitcoin, Jason was was Bitcoin originated in in the States or was that was that also in Canada? That’s uh interesting somewhere else. Well no, I’m sorry, it was another country, wasn’t it? Uh, Bitcoin,

[00:12:47.04] spk_2:
I location wise, I think it’d be best described as um kind of Bitcoin emerged online that, you know, to this day, the, the, the founder, founder or founders of Bitcoin. Um, you know, uh, so in terms of like a specific location, videos created, uh, you know, Bitcoin would have been online and then, you know, Ethiopia, many of the major players who are known were based out of Toronto.

[00:13:34.64] spk_1:
Right, okay, okay, that’s right. You say in the book that the founders of Bitcoin are still unknown to us. Right, okay. All right. Um, and with some trepidation go back to you. Uh, so since I made fun of this, tell me about what a certificate and strategic disruption is. What is that? I

[00:14:48.64] spk_0:
think the key element about it is it helps you develop a mindset about how to think about moving forward with your organization or your company, where you try to essentially disrupt yourself. And that’s why companies like Apple were so successful is, you know, they had a product and a product that worked, they could have just, you know, kept producing that same product for many years until some other company came by and beat them out and the company would go under, but instead of waiting for someone else to come out with a better product, like she said, hey, we’re going to actually cannibalize our own offering. We’re going to make a better product. So you know, we’re not going to just make the ipod, We’re now gonna make the iphone, Um, and our customers are gonna buy that instead. And so they were constantly creating new and imaginative things and changing the lives of their customers and so strategic destruction is really that. And you can apply the same type of mentality in the nonprofit sector and say, listen, you know, we’ve got a pretty good fundraising program. We’ve got major gifts that come in. We’ve got direct mail that goes out and um, we can sit here for 20 more years and raise money this way. But the nonprofits that are going to do the best in the long run are the ones that really look at their program and say, hey, let’s, let’s actually shake up the way that we’re doing things. Let’s try some really new and innovative stuff. Some of it will fail. Some of it will succeed spectacularly. And that’s actually gonna help us future proof the organization, um, and help us be, you know, essentially a stronger longer lasting organization moving forward.

[00:17:06.64] spk_1:
It’s time for a break. Turn to communications. Communications. It’s in their name. So they don’t only do the public relations and the media work that I’ve talked a lot about communications is so much more vast than that. So think about documents, documents you used to communicate case studies, your annual report, white papers turn to, can create these documents for you. They’ve got a journalism background, a writing background. They know how to understand your, your tone, your core messages and how to bring those out in your written documents. So you got this content that needs to be created and it’s not getting done. You need help think about turn to because your story is their mission there at turn hyphen two dot C. O. Now back to Bitcoin and the future of fundraising. Let’s uh, let’s, let’s bring it back to Cryptocurrency and north America. Give us give folks some motivation uh, in terms of raw numbers and potential growth. Uh, so we can help allay fears because you know, aside from it being a new technology, you know, lots of folks get the, uh, pay me $2500 in the US in Bitcoin or else I’ll release these bad things about you on the internet, you know, and I’ll share your contacts with their, you know, etcetera. So there’s some that contributes to some of the fears, these, uh, these um, uh, you know, email scams. So help help allay some fear with some hard numbers about where crypto is and where Bitcoin is maybe specifically and about the future.

[00:19:00.64] spk_0:
Yeah, I think the best numbers I can help relay are really numbers around donations that have already happened. And so you know, last year, the talent veteran who is the founder of ethereum, He gave a billion dollars to Covid relief, a billion with a b. So tell me about any other billion dollar donations that you heard about last year, you know, in any country around the world. And so, and that’s just, that’s, you know, it’s not the only one we had. The Pineapple Fund gave away $55 million borders Australia just got a $35 million dollar gift last week. Um, so the numbers that I really want to convey our, that, you know, there’s a community of crypto donors that are waiting to make these gifts that have just enormous amounts of money and a real passion for changing the world. That’s why they got into crypto because they want to make a difference. And so now they’ve got all this money and they’re trying to find organizations that they can actually give this money to. And right now that’s, that’s a challenge. Like right now there’s some incredible organizations accepting. But in order to find charities that are accepting crypto, most donors will google, they say which charities accept Cryptocurrency and then they pick one off the list. And so there’s this amazing opportunity for charities that are out there are nonprofits to actually uh, connect with this donor group that’s really being ignored by most of the community and really make deep relationships with them because they’re very different from traditional donor groups, how they like to give, what interests them, that type of thing. But the potential for their giving is just astronomical and the potential to create change together. Um, is what really gets me excited

[00:19:02.91] spk_1:
about cryptocurrencies

[00:19:04.01] spk_0:
in the space.

[00:19:30.44] spk_1:
Yeah. At the end of every chapter, you have a little call out box about a donation, a big number donation that was made in Cryptocurrency. Um, but yet the penetration rate, I think in the States, there’s only three or 4% of charities only are accepting, uh, Cryptocurrency donations. Uh, and some of them big ones that you name our United Way Red Cross. Do you want to, do you want to shout out a couple in, uh, in Canada that are accepting.

[00:20:58.14] spk_0:
Yeah, absolutely. I mean pathways to education of course, which is Jason’s organization was one of the first war child has been accepting for a long time. We have organizations like the Mississauga Food Bank, which is a, you know, a major site pita United Way up north as well as accepting. So it’s not the case that there aren’t, you know, well recognized organizations with good brands and, and that are well trusted. There are many names. Um, I think what sort of holding some organizations back is just, is education, You know, we’re at the stage where Bitcoin can be a little bit scary. Um, people don’t necessarily feel comfortable, They’re not sure whether it’s gonna be worth it. Um, and, and that’s really just a small hump to get over, you know, you can watch a lot of great videos online to learn about it. You can, you know, get the book that Jace and I put together, which is specifically written for fundraisers who don’t know anything about crypto and want to get started. Um, but more than anything, the best way to kind of get excited and start learning about cryptocurrencies and is just to buy some And you don’t have to go out and buy, you know, a $10,000 worth or anything just by a dollar’s worth of Bitcoin. Um, think of it as, you know, investing in evening of your time and learning something new and fun. Um, and that will really help you understand, you know, how it works, what it’s like, what you could do with it. Um, and uh, it’s a great way to get your foot in the door.

[00:21:29.44] spk_1:
Yeah, and Jason you in the book, you to recommend that as also establishing credibility with the crypto donor community is buying some, buying some on your own even before your organization has a, has a mechanism has set it up so that you’re not, you’re not just testing your, your own organizations, uh, infrastructure for accepting these gifts, we’ll get to that, but just buying and buying some on your own sounds like gives credibility to you, gives you credibility among the donor community

[00:23:52.64] spk_2:
for sure, and I think that many who are involved in the Cryptocurrency community, You know, I think it goes to really, how do you build that deeper relationship and have a conversation with folks that it’s it’s not just, you know, solely talking about, you know, the, you know, yes, there’s a donation part, but it’s also, you know, I think, you know, being able to speak knowledgeably about it, um, and, you know, as as people are involved in it and interested, you know, it, um, showing up in the communities as well. And I mean, that that that’s another kind of tactic that, you know, we do mentioned, you know, in the book and, you know, have seen used to to get the fact that, you know, if if you’re going to engage, you know, communities of donors that are very interested in, you know, something that they have self identified that, you know, before folks get into it. You know, folks typically, you know, do a lot of research and um, and you know, form, you know, uh, in person communities are online communities around it and just showing up in those spaces and being like, yeah, you know, I’m often, what I found over the years is that, you know, when participating in, you know, those Cryptocurrency spaces and everyone’s doing introductions, it was a few years before I was, you know, for a long time, you know, was the only charity in the space of reasons like, hi, you know, I work for a charity. So what brings you here and immediately there’s a way to connect over that and focus get really interesting. It was a few years before a second charity arrived. And you know, that was an indication to me that, you know that this was growing in awareness and such. But you know, I think that having that background of even having purchased a small amount, you know, gives that it gives that experience and credibility around, you know, it’s not just you know, saying, hey, you know, uh can you make a donation? Okay thanks, bye. It’s you know, how do you cultivate that longer term relationship where we’re part of something bigger here? Like there there’s um Cryptocurrency, you know, emerging as uh as a new asset class as a way to facilitate transactions that, you know, uh bigger, bigger possibilities. And in terms of, you know what we’re seeing with um uh with the ways that people are transacting, interacting, you know, uh, N. F. T. S around the corner. We haven’t touched on that yet, but it’s uh it gives more surface area for to connect with people on and you know, I think that, you know that one building a relationship, you know, having having more of those commonalities is also important.

[00:24:41.14] spk_1:
So, and mentioned the the fact that a lot of lot of crypto donors now are just Googling, you know, where can I make a crypto donation, but we wouldn’t expect that to continue as the penetration rate becomes higher among charities. Mean, so it is going to be building relationships and, and eventually it’ll become just another way of making a gift from folks that know, you, you know, like, like writing a check or transferring stock, eventually they’ll be the world will be just, you know, it won’t be, where do I make a donation by, through crypto?

[00:25:03.94] spk_0:
It’s no different really than, you know, when charity started adopting online donation platforms and, you know, website donation forms in the early days, there weren’t that many that had them and people wanted to use their credit card to donate online would have to figure out which charities made that possibility. But today, no charity would ever think of not having an online form. And so really it’s just, it’s just a timing thing, we’re just still in the early days and very exciting days. And because of that, there’s an incredible opportunity for the organizations that do get on on board early

[00:26:20.14] spk_2:
and, and, and to that point, like, I I think that, you know, when, when we think about, you know, early days when there were opportunities to donate online that, you know, I think there was a period in which organizations would have, you know, um competed on, you know, features that even just having the ability to accept credit cards online would have set you apart and, you know, as more people, you know, adopt online credit card payments, then you have to, um, you know, compete on a different kind of, uh, on like service provision. So, you know, the, the ease for which someone can make it right. And you know, I think we’re seeing that similar transition where, you know, right now, it’s still that, that phase where it’s like, okay, you know, does someone accept it? Yes or no? And that, you know, as that, um, as that number increases, then it’s going to be a different proposition where it’s like, alright, who, who does it with the most ease or who provides that additional added experience? That is, you know, absolutely fantastic. Um, and you know, as we look into, you know, how, um, how folks are engaging. Like, you know, it is there a future in which, you know, folks, you know, have some sort of representation on, you know, the Blockchain that’s like, you know, this certifies that, you know, you have donated to this organization or you know, you, you can unlock, you know, uh, different online, you know, possibilities, you know, through your donation that’s embedded on the Blockchain or opportunities like that. So, you know, I think that that’s kind of a possible feature that, you know, things can move in that direction as well.

[00:27:27.44] spk_1:
Jason, let’s make sure everybody understands the Blockchain. Uh, it took me a good amount of reading and many guests before you or well give myself a break a few guests before you. Maybe not many, uh, you understand what Blockchain is but it’s really it’s really something very simple once I once I once I understood it was simple but it took a little I’m trainable I guess I’m trainable. That that that’s the good news but uh you know so every every Cryptocurrency is on a Blockchain and you the book is a very good primer about all the, about the whole world of Cryptocurrency not just about Blockchain but I found your book to be a good primer use good analogies, I mean simple analogies that are easy to understand. So well let’s make sure everybody understands what a Blockchain is and and why each Cryptocurrency has its own Blockchain. Can you explain that Jason since you just mentioned Blockchain?

[00:29:06.64] spk_2:
Yeah yeah so so when we’re making a transaction you know there there is a record that has kept it and traditionally you know there may be like you know 11 record that is kept but what’s different about a Blockchain is that as a transaction happens on the network uh everyone who is participating in the network keeps a record of um of all the transactions that are happening. So you know the three of us right now that um you know uh tony Jason and that you know if I were to transfer Uh you know $5 you know worth of Bitcoin over to end That the record that has kept. You know imagine all three of us scribbling that because we we witnessed that happening. And so, you know, it’s between, you know, uh someone could claim it’s like, oh you didn’t actually give and you know $5 you gave her three and be like, no, no, wait a minute. Like you had seen that transaction, you had written it down. And so that is kind of a really basic explanation of, you know, what, how the Blockchain operates except instead of three people, imagine that with 30,000 people or more like, you know, just every single person who’s participating, the network keeps their own, you know, extremely detailed ledger of everything that is happening within the network and that that’s, you know, in part what keeps it secure that instead of trusting, you know, one single party that, you know, could, you know, alter, you know, those those records. It’s like you you have the collective that, you know, everyone sees everything that’s happening simultaneously in electronic format.

[00:29:45.94] spk_1:
And you to explain in the book why that’s enormously secure, secure from, from hacking from financial fraud and theft, uh, secure from mistakes. So, you know, listeners, you gotta get the book to get to go into the depth of the security of of the Blockchain. Um All right, so let’s let’s let’s start getting into the nitty gritty of of how to and can you start us off with, I think it’s important to explain what the keys are, the private key and a public key and then we’re going to get into how folks get their own are going to buy and maybe sell their own Cryptocurrency but you started off with the keys and.

[00:31:25.64] spk_0:
Yeah no problem. So if you think about your wallet um that you have in your purse or your back pocket and you store your cash in their Bitcoin uses something called the wallet as well. Um And it’s where you store your Bitcoin but it’s digital. Now if you think about your house, every house has a public address so 123 any street and you can give that address to anybody in the world they can send you a letter. They can you know show up and look in the windows but they can’t actually open the door to your house and take any of your stuff. And so your Bitcoin wallet also has a public address. And what you can do with that public address is give it to anyone that you know wants to send you money and they can send you money and it gets deposited into your wallet. But your wallet also has something called a private key and it’s kind of like the key to the front door of your house. And so if you give that key to anybody um they can open the front door of your house. They can come in and take all your furniture and all your electronics and whether they’re legally allowed to or not they can do it And the same sort of thing applies to your wallet’s private key if you give them that private key, anybody can then open up your wallet, take your Bitcoin and there’s really no recourse. And so, um, essentially what that means is you want to always keep your private key safe, always keep your private key backed up in a number of secure locations. Um, and what’s really nice about that is if you ever have any issues with your wallet, like let’s say you lose your phone or you know, something happens where the company making the wall, it goes under and you’re suddenly like, where’s my money? As long as you have your private key, you will always have access to your money. And so that’s what’s really amazing about it versus say if your bank went under, you might not have access to your money ever again. If Paypal froze your account, you wouldn’t be able to access your money with Bitcoin. As long as you have your private key, you always have access to your money.

[00:33:39.24] spk_1:
Okay. And again, as I said, the book, such simple analogies that the public key is like your address and the private key is like your house key very very, very comprehensible. It’s time for Tony’s take two veterans Day was last week and I was remiss in my show planning for last week’s show. So I don’t want to let it go. Unmentioned. I’m grateful. I’m thankful. I thank the many millions of people who have served our country in the military and also my gratitude to families who have lost folks because of their military service families that made that sacrifice and the military members themselves, that made those sacrifices. I’m thankful to those people as well. And if there’s someone in your family who died in the military, died supporting and defending our nation, I thank you. I had my own service. I was in the Air Force uh Military services is a calling and I I admire those who continue to answer that call. That call to to service duty to our country. Thank you. Thank you. Mhm. That is tony stick to Veterans Day. We’ve got boo koo but loads more time for Bitcoin and the future of fundraising and you know, you want to continue. It seems to me like the next step is, or the way you lay it out is the next step is getting a wallet.

[00:34:00.54] spk_0:
Yeah, so there’s lots of different ways to get a wallet. Um There’s most, the most easiest ways just get download a mobile wallet on your phone. Um There’s ones on the web as well and there’s a number of different companies out there now. Um

[00:34:01.66] spk_1:
and just explain what the wallet is for.

[00:35:27.24] spk_0:
Oh yeah, the wall is just restoring your Cryptocurrency, that’s it. So it’s kind of like the wallet you’ve got in your purse or in your back pocket. Um it’s just where you keep your crypto and it enables you to send it to other people. So if you have like Venmo or something like that, it feels a bit like Venmo um you just open it up and you can send your Bitcoin to someone else. The difference is there’s just no centralized company behind it, the way there is with Venmo or Paypal, um so you know, there’s a number of different wallet companies out there, some of them will enable you to hold on to your private key. Like Blockchain dot com is one example of a wallet that I use, that enables you to hold on to your private key. Many of you probably heard of coin base coin base is a little bit different because they actually hold on to your private keys. So it’s probably less secure from that perspective because it’s always good to have your key, but if you’re afraid of losing your key, coin base is probably a good option for you. Um So once you pick the wallet, you download it onto your phone um and then you can use an exchange to actually buy Cryptocurrency. So typically you would either connect your bank account or use a credit card um and just trade some of your usd or eur Canadian dollars for us northern folks and they’ll give you something corny return kind of the same way, like if you were going on vacation to Mexico, you would take your usd to an exchange booth at the airport and they would just trade you some usd for mexican pesos here. You’re going to get usd and get some Bitcoin back.

[00:35:34.14] spk_1:
So and if it’s a, if it’s a wallet like coin base, you said they hold your private key, you can also hold your private key. I mean like they can’t have it and you have it.

[00:36:17.53] spk_0:
No, because at the end of the day it’s like your house key. You know, if two people have a copy of the house key and all of a sudden the contents of the house are gone. Who stole them? You don’t know, you fundamentally need to have, you know, one person that, that’s responsible for the contents of the wallet and that’s either gonna be you as an individual or the company will take on that responsibility for you. Which has its pros and cons. Um, and so yeah, for a lot of people that’s, that’s a huge plus having someone else manage that responsibility for um, others in the crypto space. It’s really important for them to manage and own their own money.

[00:36:22.73] spk_1:
Can you name any other of the more popular wallets you mentioned Bitcoin dot com coin base

[00:36:29.96] spk_0:
coin bays bread wallet. Um, there’s electra. Um, there’s Jason. What other ones can you throw in there?

[00:36:37.93] spk_2:
I think that that, that covered off all the big ones, the

[00:36:47.23] spk_0:
metal pay exodus. Yeah, there’s, there’s a number a number of different options out there for folks to choose from these days, which is great.

[00:36:52.57] spk_1:
Okay. And it’s just a matter of googling right. What what are the top 10 wallets or what what’s a wallet for my, is it is it country specific? Do you need a wallet that works in your country, Jason?

[00:37:21.43] spk_2:
No, it’s uh it’s pretty cross border. So you know the song is that you can download it from uh you know, your respective app store and it works, you know, just uh you know, making sure that you’re finding a reputable wallet that you know has solid reviews and but you know, there’s uh no country specificity aside from, you know, uh if it is attached to a certain provider, a company that accepts a certain currency. So I know that there are some wallets um on the international side that are particular for um deposits, that you know, if uh if you want to deposit in a certain currency, then that may be the only kind of particular about it. But otherwise, you know, it’s pretty uh pretty universal.

[00:38:08.22] spk_1:
Okay? You make the security point in the book about not keeping your private key on your phone. But you both have mentioned the phone and using a phone app, but you’re supposed to just write your private key down and keep it somewhere secure. Like uh I get like a safe deposit box or something.

[00:38:44.82] spk_0:
Yeah, safe deposit box is a great spot safe in your house somewhere where you’re keeping really important documents. The way to think about it is you know that key will fundamentally open access to all the money in your wallet. So if you had $500 in cash where would you store that? Would you store it in your desk drawer? Would you store it in your bedside table? Probably not. You probably store it somewhere a little more secure. So based on how much money you have in your wallet, that’s sort of where you want to think about storing your private key if it’s 20 bucks, yeah, maybe put it in your desk if it’s $100,000 you definitely don’t want to leave that lying around.

[00:38:48.12] spk_1:
Um And Jason can you say a little more about exchanges?

[00:40:30.41] spk_2:
Yeah. So in terms of exchanges um you know we talked earlier about, you know while it’s exchanges are where the many of the transactions are around the world, you know take place. And really that it functions you know similar to regular kind of currency exchange or a stock market exchange where you know there’s it establishes a market where there you know those buyers and sellers and so you know um uh as I mentioned earlier, you know if you’re looking to exchange something like us dollars for you know. Bitcoin that um you know you’re you’re usually gonna be working with an exchange in order to uh to do that and on exchanges, you know, depending on on the exchange. You know, they may list a whole bunch of um different currencies, cryptocurrencies, you know, uh So you know, they may list in U. S. Dollars, you know, Canadian dollars, you know, Bitcoin ethereum, you know, if folks are looking at things like, you know, dodge coin um uh and it’s going quite quite extensive. I mean, you know, some of the larger ones are definitely, you know, listing uh many many different cryptocurrencies. Um but you know, if those who are looking for like, you know, the major ones that you don’t have emerged, you know, primarily, you know, Bitcoin in theory. I mean those are pretty standard almost across all exchanges these days. And uh they they the exchanges are really the mechanisms for which um you know, as a release back to two nonprofits that uh you know, after someone does make a donation of of Cryptocurrency um you know, having that exchange, you know, connection or um and some providers, you know, have that baked into their uh their services. That’s how you convert the Cryptocurrency back into, you know, a currency that the uh charity can use, you know, so if you s you know, how do you get that big pointed us dollars, you know, you’ll you’ll be working through an exchange in order to convert that so you can deposit into your bank account as well,

[00:41:05.61] spk_1:
Jason, let’s make something explicit because you know, when we’re recording Bitcoin a single Bitcoin is around $55,000 roughly a single ether is around $3500. Let’s make explicit that you don’t have to spend $55,000 if you want to participate in the in in buying some Bitcoin.

[00:41:08.31] spk_2:
No, absolutely not. So you know the uh it goes up to eight decimal places and I think that that’s something that is uh that’s helpful to to be aware of. So you know it is possible to buy like you know 0.00000 won worth of Bitcoin or ethereum. So um you know they’re uh definitely do not have to participate entire Bitcoin or entire. Either in order to participate in the in the ecosystem.

[00:42:15.20] spk_1:
Okay. And so you have in the title of your book you you you you you say Bitcoin but non profits could be accepting any of the any of the coins that you mentioned. But does it become so when you when you stray from Bitcoin and ether which are the two most popular, are you are you taking a greater risk if you get into like stellar and you mentioned dodge coin and by finance does it become riskier for for you personally if you’re doing your your experimental purchase and your credibility building purchases or or for your non profit if you’re accepting those other less popular like all the old coins.

[00:44:43.99] spk_2:
Mm it’s similar to I would say like you know in kind donations or stock donations that charities would ordinarily receive. And so you know, I think that when considering Cryptocurrency donations, like the vast majority of them are being transacted in Bitcoin followed by either in that order. However, when looking at all the coins, you know, what’s worth kind of thinking about is you know, imagine a prospective donor who you know may have, you know, picked up Dodge coin when it was valued at 0.0001, you know, sense and held onto it. And you know, now I think the last I checked it was like 26/27. And so you know what with regards to risk, I think it’s more helpful to assess like, you know what what’s the conversation that’s being had. You know, is someone approaching your organization with, you know, uh a donation was like, hey I like to contribute, you know, 100 $100,000 worth of dodge coin. You know, generally speaking, I would hope that, you know, a charity that is approached with that kind of um offer. You know, it’s okay, let’s, you know, let’s find an exchange that that will, you know, help us convert, you know that that amount of dodge coin, you know, into uh into U. S. Dollars to allow us to to accept it. And and so um, you know, I think it really depends on the audience. Um and so you know I think that’s what drove some of the early adoption where, you know, as Bitcoin started, you know, rising in price, you know, more offers of donations were emerging and you know, I think that you will see, um, you know, similarly with the old coins that are out there that, you know, definitely for folks who have gotten in early on some of the old coins and you know, um, it, I think it still remains to be seen which ones will, will take off. You know, we’ve already seen, you know, the emergency, you know, Bitcoin and ether. But you know, five years from now. You know, who, who knows, you know what, maybe up there. And so, um, what I have observed is that many of the exchanges are responding accordingly as well. So as as a, uh, all coins or other cryptocurrencies are taking off. You know, they get added to exchanges, which does make it easier and simpler for, um, for organizations to uh, to exchange and transact in that. So, um, you know, there, there have, there have been instances actually of folks donating, uh, you know, all queens, I think dodge coin, you know, definitely has a lot of fun stories about how, uh, how supporters have, uh, have donated their, um, their, their rapidly rising uh, currency.

[00:45:49.99] spk_1:
Yeah. Because you know, like you’re saying dodge coin, someone could have bought it for uh, tens of thousands of a penny. And at one point, I think it went up to like 60 cents or 65 cents in value. So if someone had spent like $100 or even a foul, all the more of 200 or 500 or $1000 buying millions of shares and then the price went up to 60 cents. You know, they’ve got, they’ve got a lot of money in dodge coin all of a sudden and if they then converted it to dollars Canadian or us, uh, they’ve got a lot of money potentially to give. And, and the, the book points out a lot of folks who are very, very generous with their, with their Cryptocurrency windfalls,

[00:46:34.98] spk_0:
Jason correct me if I’m getting the numbers wrong, but if something approximately where if you had, you know, invested $100 in ether at its launch, you’d have over a million dollars today for $2 million dollars today. Like it didn’t take a lot at the beginning. If you were really passionate about this project, you put a little bit of money in um, to suddenly have this astronomical wealth that would be almost impossible to generate in any other way in our society. And so it’s, it’s really what you end up getting is fairly ordinary people, you know, that came from ordinary means that that now have this wealth that, you know, they’re not interested in buying gold plated sneakers, you know, they want to create change and that’s where the nonprofit sector can really help them do that.

[00:47:23.18] spk_1:
And let’s stay with you and move to the organizational level Now. Let’s talk something about getting, getting buy in uh, in the book. You make the point that you’re not even sure the board should be approving this, they shouldn’t be involved. It’s more like, should we start accepting credit cards? You know? Uh, so it’s more um, asking for support rather than permission. But let’s talk about, you know, Ceo by in or maybe vice president of development by in uh, what are some of the reasons you might you as a crypto advocate in your organization? Might might start putting forward for why your organization should get into this. So

[00:49:16.07] spk_0:
the reason that I used when I was convincing my Ceo back in 2014 was I said, look, you know, it’s really what we can do is accept it, we can sell it immediately. There’s no fluctuation, there’s no currency risk, anything like that. And fundamentally that’s no different than accepting a stock. Like we already accept stocks and other securities. So if we do exactly the same treatment as we do with stocks, there’s really no risk to the organization and I think this day and age, there’s no brand risk, there’s, there’s no another stigma that used to exist around Bitcoin is really not there anymore. We’re seeing it adopted by not only charities, but major organizations and companies Microsoft, IBM, all kinds of different companies are heavily involved in cryptocurrencies. So I think that’s, that’s the key one is saying, okay, we already do this with another volatile asset on the stock market. Here’s another opportunity where we can essentially bring in A whole new set of young donors. And I think that’s probably my favorite argument for Cryptocurrency is most of the donors and most of that community are between the ages of 24 and 40. Um, and so if you’re really looking to bring on a whole new set of the younger generation of donors, this is a great way to do it. And you won’t be cannibalizing any of your other activities. You’ll have this whole new set of donors with no risk. Um, and for any organization that fundamentally says, hey, we want to be innovative. We want to be new here is a great way that you can do that. That is not only exciting and innovative, but it’s also a revenue driver. And so it’s pretty hard to say no to something where you say, okay, you know, we’re gonna, we’re gonna give this a try. It’s going to cost us essentially nothing to set up. We can set it up over the course of the week. There’s no risk and it might make us some money and bring in new donors to me. That’s an absolute hell, yes.

[00:49:56.87] spk_1:
Okay. There was like four or 5 very good reasons why, you know innovate, prepare for the future, expose yourself to do constituents. Uh, it’s becoming mainstream. There’s no stigma. Um, and and help you raise more money just in a different format. Um, let’s just make explicit. And is it is it your your recommendation that non profits would sell their their Cryptocurrency right away as you would with stock or what, what is your recommendation for? What to do with a crypto currency gift once you have received it,

[00:51:17.86] spk_0:
I wouldn’t recommend it. But that’s my risk tolerance. And so what’s really most important is to look at, like, what is the risk tolerance of your organization? You know, And I think, um, every organization should really sit down and say, okay, how much cash do we have on the balance sheet? You know, how much money do we have every year to play with? And what percentage of that Are we willing to put in a high risk investment? So maybe we decide that as an organization, we want 99% of our money that we raised to be there at the end of the year, and that’s totally fine. Um, but take that 1% and hold it in a Cryptocurrency and see what happens. Um, and say, look, this is a microscopic risk that we’re going to take for the potential upside of making a lot of money. Um, or maybe your organization might be a little more risk friendly. You say, look, we’re gonna we’re gonna have safe, secure investments or just keep our money in cash for 75% of what we bring in 10% we’re going to put in, you know, uh index funds with the stock market and the rest, we’re going to put in Cryptocurrency something a little bit higher risk, like I think really at the end of the day it’s not so much, you know, should you sell it or not, it’s how much of your portfolio are you putting in high risk versus low risk assets? And I think the thing to keep in mind this day and age is with inflation, where it is putting your money in cash is not safe, You’re losing money every year by holding that money in cash. So if you’re trying to maintain the amount of money that you have by the end of the year, you need to be doing something with it. So is that something high risk, low risk, what percentage is it? Um That’s up to the organization to decide. But I would really recommend that every organization actually take a critical look at what they’re doing with their money um and reserve at least a tiny portion of that to take a look at holding cryptocurrencies for the longer term.

[00:51:49.66] spk_1:
And the reason you say you’re losing money if you’re holding cash is because of inflation.

[00:51:53.89] spk_0:
Absolutely, yeah,

[00:51:55.76] spk_1:
Jason anything you want to add to the organizational policy.

[00:52:00.85] spk_2:
Yeah, I think from just looking over a trend lines, you know to the point that that and made about risk, it’s you know really aligning overall organizational strategy with what organizations looking to achieve and how you know their asset holdings maybe um may reflect that and that their risk tolerance and I think when looking at trends like it was as early as I believe it was 2014 at the time that Canada was looking at digital currency programs and you know, although that program at the time that it was called the mentorship program, you know didn’t proceed, you know uh

[00:52:32.83] spk_1:
I’m sorry Jason who would you say was looking

[00:53:11.45] spk_2:
at? I’m sorry the Canadian government or the Bank of Canada was looking at a program called the uh the mint chip program and that was really a Canadian digital currency that was being explored. But now there’s been a resurgence I think just in the past week, you know the G seven group of nations you know agreed upon, you know a set of standards to examine, you know digital currency. So I think when looking at, you know overall trends, you know digital currencies and cryptocurrencies are not if but it’s a when and you know for organizations are preparing for the future, strategically it’s it’s really you know do are by by participating in the ecosystems. Now you’re especially future proofing organization for that future which is going to come of, you know as governments are seriously looking at digital currencies that the same principles that govern you know, how do you treat you know, cryptocurrencies that this is all going in the digital direction and you know that much is evident. And so, um, it’s more of a timing consideration now. It’s, you know, would you like to do it now or later? It’s

[00:54:24.84] spk_1:
coming right. It’s it’s not, it’s not if, but when I think that’s a terrific place to wrap up. You know, there’s, there’s a lot more in the book. There are checklists for how you set this up at your organization. But I wanted to focus on the basics a person venturing into this because with the statistics that that I mentioned, so there’s still 87% of Americans are not involved in crypto and still 70% of Canadians are not involved in crypto. So I want to, I want to overcome that and then move to the organization level. And as I said, the book is a very good primer, lots of easy to understand analogies. The book is Bitcoin and the future of fundraising. A beginner’s guide to Cryptocurrency donations. The co authors are an Connolly at an underscore Connolly and Jason shim at Jason Shim and Jason, thank you very, very much.

[00:54:32.94] spk_0:
Thank you so much, appreciate it.

[00:54:34.68] spk_2:
Thanks tony

[00:55:08.54] spk_1:
pleasure thank you for sharing and and doing it in a simple way next week. Mission uncomfortable. That’s a working title with stew Swinford, that’s not a working name. He’ll he’ll stick if you missed any part of this week’s show, I Beseech You find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Our creative producer is Claire Meyerhoff

[00:55:10.73] spk_2:
shows. Social media is by Susan Chavez. Marc Silverman

[00:55:14.50] spk_1:
is our web guy

[00:55:15.65] spk_2:
and this music is by scott. Stein.

[00:55:30.94] spk_1:
Thank you for that. Affirmation. Scotty You with me next week for nonprofit radio Big nonprofit ideas for the other 95%. Go out and be great.