Giving away money to make more money?


#1

Anyone out there using the trend of impact marketing and social enterprise to drive engagement/conversions?

I spend my offline time working with big companies (listed on the stock-market big) advising them on integrating impact into their business and marketing plans. The big trend I’m seeing is more and more companies integrating impact thinking into their messaging.

In e-commerce, I think we are going to see consumers be more and more demanding that businesses are giving back in one way or another. I’m launching a site at the moment to test whether donating a portion of profits will increase conversions or not. Obviously this sin’t going to matter in the ‘guru info products’ sector, but I think it will definitely affect B2C products. We are already starting to see a backlash forming against cheap imported products which is going to really affect drop-shiping and those who aren’t really adding value to their products. More and more people are wanting to understand where their products are coming from and what the impact of that manufacturing process has been.

There are a couple of different models to think about:

  • Ethical products (fair-trade, hand-made, etc)
  • Donate a percentage of profits to charity
  • Buy one - give one (Tom’s shoes, Warby Parker, etc)

Anyone tried using these approaches in conjunction with some of the social media marketing techniques discussed here? Any interest in learning more about this area? If so I’m happy to expand on some of these ideas. Seems to me like there is an opportunity to also be doing good in conjunction with our work here, and it might be a good return on investment.


#2

Yea I think it can work but only for real quality products as you said not cheap drop shipping.
Especially the buy one give one model seems to have worked quite well, I read the book of Blake mycoskie about that.
And also I think it will only work as Long as millennials have money i guess :joy:


#3

Just after I posted I came across this. Even music festivals are getting in one this: http://www.stuff.co.nz/entertainment/music/115218474/the-industry-is-broken-fyre-festivals-viral-star-andy-king-urges-new-direction-for-festivals


#4

I’m really interested in this topic, so far the only experience we have are the typical contests/giveaway that are working OK, and a customer that is doing giveaways of Iphones and once a week 100 euros.
His account is growing like crazy but we want to see the long term engagement.


#5

I remember back when I was running dropshipping stores, the offers that converted the best were buy 1, get 1 for free or similar types of offers.

Also, there are actually some gurus that implement this strategy. Think Tai Lopez and Grant Cardone who give away thousands in cash just to grow their instagram following.


#6

I just checked Tai Lopez’ IG page and he has over 3.1 million followers - maybe there is something to giving away cash to get more followers and grow your business. Or at least try some type of giveaways. I have not done that yet, but looks like a sound technique


#7

Yeah definitely. I am not entirely sure if he actually gives it away or just pretends to (although I am leaning towards he actually does) but it is definitely effective. Because people have to comment and tag multiple friends I think to participate.

Also Grant Cardone was so salty that Tai had more, he decided to give away a total of 1million dollars to get to 1 Million followers.

It is a sound strategy. Lots of bigger companies do similar things to grow their following and email list.


#8

Maybe I wasn’t clear enough in what I was saying. I wasn’t advocating giving away cash to random people just to get more followers.
What I’m talking about is doing something that makes the world a better place in order to appeal to consumer preferences.


#9

I feel like a lot of IG giveaways are scams, like they are just posting the giveaway to get engagement and new followers and don’t actually give out the prizes.


#10

Giveaway is always good idea, I have clients doing fake giveaways few times monthly, they make post about iphone X giveaway, you just need to follow the page and tag 3 friends under the post. And then they just put one of my accounts as the winner :rofl: