The Ins and Outs of Premiums
The Ins and Outs of Premiums
Oct. 4, 2005
By Abny Santicola, FundRaising Success
Not all premiums are created equal, nor do all of them work for all nonprofit organizations. Dean Rieck, consultant, copywriter and creative director with Columbus, Ohio-based Direct Creative, says personalized mailing labels, tote bags, calendars, note cards and bumper stickers can all work for nonprofits.
"But this is tricky," Rieck adds. "If your premium seems to be too expensive, people will think you're wasting their money. But it has to have some perceived value in order to work."
Rieck says personalized mailing labels often work well because they find this middle ground.
"They're fairly inexpensive but they're very handy," he explains. "They also serve as a constant reminder of support for the organization."
The goal behind using premiums in nonprofit direct mail, Rieck says, is to create an unspoken, subtle quid pro quo.
"People feel an overwhelming urge to repay debts, to do something in return when something is done for them," he says, and he suggests finding ways to do little things for prospects and potential donors.
"Giving away labels, stamps or greeting cards are popular, but anything will do as long as it seems generous or thoughtful. It can make your reader feel compelled to do something for you," he adds.
Below are some take-away tips from Rieck when it comes to use of premiums in nonprofit direct mail:
- Beware of lists built on premiums. These are not reliable donors because they've been "bribed" into giving.
- Give donors the option of opting out of receiving the gift. Many will prefer that every penny goes to the cause.
- When possible, have the premium relate to the cause. For example, if your organization is trying to help poor children overseas, you could offer a wall calendar with artwork created by those children.
- Don't use premiums for large donors. People with deep pockets are more susceptible to ego-gratification and recognition than premiums.
- If you want to boost response, it might be better to spend time improving your appeal message rather than offering a premium. Making the right emotional appeal is always key to any fundraising effort."
Dean Rieck can be reached at 614.882.8823 or by visiting www.directcreative.com.
