Affinity Marketing, Part I

Think of it as marketing with a generous twist. In Part I, we show you what you need to do to get started.

by Doug McDonald President, Branch Run Communications [December 20, 2004]

At this time of year our thoughts turn to the holidays, and beyond them into the year ahead. It is both a time to look back on the year, remembering its successes and failures, and with 20/20 hindsight, recognize the changes that should have been made. As the year changes, many of us then resolve to make changes in our lives.

Beyond personal health and fitness items on the agenda, we also resolve to improve the fitness of our careers and business. We want to strengthen our careers, grow our business, and make more money. Many of us also want our business to take a more prominent role as an example of good corporate citizenship within the community we serve.

Today, I want to show you one way to not only grow your business, but also to give more back, literally.

Think like a group
"Affinity Marketing", or the targeting of specific groups of like minded people has been successfully implemented in innumerable industries, including the ISP and webhosting industry.

There are success stories large and small, but there are also plenty of untapped opportunities. Perhaps the biggest affinity marketplace is one of the most rewarding. I'm talking about serving the unique needs of charitable organizations and the armies of dedicated volunteers that make supporting these efforts their raison d'être.

What if you where to create an ISP for the supporters of one such "cause" and then donate a portion of the proceeds back to that organization for every customer that joins as a result? That would be a compelling offer for not only the management of the group you're looking to support but for its constituency as well.

It's not easy to make a deal. Structuring a program that benefits all parties is rarely easy, and in my experience, affinity deals can even be harder to get started than most.

Before you go looking for organizations or associations to sign up, you need to get the basics worked out. Like all good things, it does not come to those who wait; it will come to those who are ready for it and then go out and get it. This is something that you are going to need to dedicate both time and brain cycles to.

If you or your organization are unable to spend time on it right now, then I suggest either finding the time, hiring the right people, or waiting. If you set out without preparation, you will do yourself, your company and your partners more harm than good. Trust me on this one—I talking from my experience.

You will need to decide how much to give back. Is it 5 percent? 10 percent? 25? Do the calculations. Knowing at what point the economics make sense for you will save you from having to alter the deal mid-stream. What about business accounts? Can you afford to be more generous with those? Less? In whose name will you be making these donations? How will billing be handled?

These are just a few of the items that you'll need to address internally before you head out or pick up the phone to make that first prospect call. There are many others, of course, but you get the idea.

Know what you can offer, and offer as much as you can
Before you can determine what you're going to be giving back, you'd do well to take a long hard look at what you're going to be bringing in. Your "standard" packages just might not be enough. This is where you can also look to build some higher value packages with some more of the value added components you've been considering.

Go to page two: Know your group >