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Many direct sales consultants find that doing fundraisers are a great way to get business exposure and sales. Following are some ideas of ways you could set up your fundraiser. Proactively offering direct sales fundraisers that require little from the organization but might yield them some good return, may be accepted!

Direct Sales Fundraisers

Be sure to work on the financial details with the organization before you start the fundraiser, so everyone is clear on exactly what you will be donating. Following are some options to consider:

  1. Donate a straight percentage of your total COMMISSION to the organization. You would enter all orders, figure out the commission, and give them an agreed upon percentage. Let’s assume you have a 40% commission rate on your retail sales. Ex: $1000 in retail sales will be around $400 in commission. Let’s say you agreed to donate 50% of commission, or $200. Keep the hostess rewards yourself on the event to recoup your donation.
  2. Donate a straight percentage of RETAIL SALES. Let’s assume the same percentages as in #1 above. Ex – $1000 in retail, will yield in $400 in commission. If you offer the organization 20% of total sales, that would be $200 in donations.  The same donation, but a different angle on the numbers. Keep the hostess rewards yourself on the event to recoup your donation. As long as your percentage of sales is equal to or lower than your consultant commission, you theoretically should not lose money.
  3. Donate the equivalent dollar value of the hostess rewards earned, and keep the hostess rewards for yourself to resell. You will keep all commissions, but break-even on the hostess rewards.
  4. Donate the hostess rewards to be auctioned off by the organization. Give the actual product to the organization for future silent auction, gift basket, or fundraiser. You keep all the commission on this scenario.

Or get creative, and consider any other combination of scenarios that will work for you. You want to consider your current and long-term relationship with the organization, and figure out how much you want to donate. The key distinction is the difference between donating a percentage of commission versus sales, and being clear on the return the organization can expect from your direct sales fundraiser. If your brand offers a fundraiser matching program, that is another consideration to help maximize the return for the organization.

Where Can You Find Fundraisers to do?

Start by looking in your own community, either online or in person. There’s bound to be an organization or club that needs an extra fundraiser to help pay their expenses through the year. Your local PTO, Cub Scouts, Girl Scouts, a dance studio, baseball team, etc.

These community clubs are almost always looking for new ways to get money for their programs. When you approach them, make sure you outline exactly what you want from them: what kind of marketing will they do, if in-person; what space will they provide and for what hours, if all online how will they spread the link to people. As well as what kind of marketing you’ll do for them: how you’ll share it on your Facebook Page/group, send it to your email list, make flyers that can be passed out, etc.

Work together to make the event successful for both of you, and keep that relationship for years to come.

#EmpowerSocial

Brenda Ster in a rectangle frame with the words How to figure out fundraisers with your direct sales business and make it worthwhile for all of you for the blog post Financial Considerations in Direct Sales Fundraisers

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