Raising Money with GoodTwo Group-Buying Site
What is unique about the GoodTwo group-buying site is that causes can select the deals they think their supporters will like and purchase from a menu of products and services.
As you can see from the following illustration, the Ellie Fund has four deals from which donors can choose. The nonprofit shares these deals with its supporters through e-mail, social media, and so on and receives a portion of the purchase price.
GoodTwo isn’t focused on building a database — unlike Groupon, which has 35 million registered users, GoodTwo is a platform that combines commerce with cause and contacts (your contacts, not theirs) to raise money.
A wonderful part about GoodTwo is that the success of your daily deal is really up to you; the site simply provides a customized solution for combining contacts with commerce — so much so that GoodTwo lets causes even submit their own deals. If you’re a nonprofit with a decent e-mail list, you can solicit your own deal and use the GoodTwo platform to share it with your supporters.
You need two things to succeed with GoodTwo:
Businesses that will give you deals: GoodTwo already has deals from local businesses that you can use, but the ones you can secure will probably be better and raise more money for your cause. A daily deal partnership with a business may also lead to another cause marketing opportunity.
A good database of contacts to send your daily deal to: This aspect is critical as the success of your campaign will depend on the people who receive the offer. If you don’t have a good-size database, you may want to use another group buying site that has a large audience to e-mail.
GoodTwo allows fundraisers to run a customized campaign with discounts of 50 percent or more at local and national businesses, hand-picked for their donor base. Every time a donor buys a deal, the fundraiser keeps half the profits. The business running the deal through the fundraiser receives an influx of new customers and a valuable cause association.
You won’t receive all the money, even if you solicit your own deal. Every time a donor buys a deal, the nonprofit keeps half the profits. If a donor buys a massage at 50 percent off for $35, the nonprofit gets half the profits, $8.75. This percentage can vary based on the deal and the partners.