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How to Raise the Money You Need to Win Your Election By Joe Garecht www.LocalVictory.com Class Guide #4: The Complete Guide to Finding Donors and Raising Money through the Mail

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Page 1: How to Raise the Money You Need to Win Your Election€¦ · how to use snail mail letters to raise money for your campaign. Remember, if you have any questions about what you are

How to Raise the Money You Need to

Win Your Election

By Joe Garecht

www.LocalVictory.com

Class Guide #4:

The Complete Guide to Finding Donors and

Raising Money through the Mail

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© 2016 by Joe Garecht. All rights reserved. 2

Welcome back to our class How to Raise the Money You Need to Win Your Election. I hope

you enjoyed last week’s class materials, where we talked about how to ask donors to make a

donation to your campaign.

In this week’s class guide and podcast, we’re going to be talking about direct mail fundraising…

how to use snail mail letters to raise money for your campaign.

Remember, if you have any questions about what you are learning, please feel free to e-mail me

at any time at [email protected] and I would be happy to answer!

Fundraising through the Mail

For over a century, direct mail has been a fundraising staple. Millions of campaigns and political

organizations have successfully used direct mail to raise money to fund their election campaigns.

Yet, with the advent of the Internet, e-mail, and social networking sites (not to mention the

proliferation of political, non-profit, and for-profit direct mail), many people wonder if direct

mail still works. In this class module, we’re going to be talking about direct mail: whether it still

works, and how to use it.

Fundraising vs. Non-Fundraising Direct Mail

First, it is important to understand that there are two types of direct mail: fundraising and non-

fundraising direct mail. Fundraising mail is, as you would imagine, used to raise money. Non-

fundraising direct mail is used to introduce a candidate, get out the vote, go negative on an

opponent or highlight certain issues. For example, your campaign may use snail mail

newsletters, or send out informational letters or post-cards that don’t make an ask. These are

non-fundraising direct mail pieces.

This guide is going to focus specifically on fundraising direct mail – that is, mail that is used to

make a fundraising ask.

Does Using Direct Mail for Fundraising Still Work?

The first issue we need to address is whether or not direct mail still works for fundraising. With

the Internet, direct mail, and social networking sites, many people don’t hold the mail in the

same high regard as they used to… they routinely receive only bills and marketing materials

through the mail at their homes and offices. In this environment, does direct mail still work?

In a word: yes. (In two words, “yes, but…”).

If you’re looking for a simple answer, it is: yes, direct mail still works, and thousands of

campaigns and party committees still make a considerable portion of their fundraising income

through the mail, while countless others use the mail to supplement their revenue.

The full answer is more complicated, however. The truth is, while direct mail still works, it

doesn’t work quite as well as it used to. While some populations still respond well to the mail

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(particularly those aged 50 and older as well as those in more rural areas), other populations

don’t respond as well to direct mail solicitations (especially those 18-35, and those that live in

major metropolitan areas).

My suspicion is that while the mail still works, over the next 50 years we will see a steady

decline in direct mail solicitation response rates. Thus, all campaigns should be careful in using

the mail and make sure they keep an eye on their ROI (return on investment).

Because direct mail still works, and works well, I truly believe every campaign should be using

it. However, because it is in a slow and steady decline, I also suggest that all campaigns that use

the mail keep close tabs on their revenue and expenditures using this tactic.

Ok, now that we know that direct mail still works, and that you should be using it at your

campaign, let’s take a look at how to supercharge your direct mail and raise the most revenue for

the least cost.

Prospect Mailings vs. Housefile Mailings

The most important concept you will need to understand in order to run a successful fundraising

direct mail campaign is the difference between prospect and housefile mailings.

Housefile Mailings

Letters sent to your current list of donors are called housefile mailings. These letters are mailed

to your housefile (or a segment thereof) which is composed of people who have already

contributed money to your campaign. With a well-designed letter, these mailings are almost

always winners, because people who give you money once are likely to do so again. You know

they support you, and have the capacity to give, because they have done so already.

Prospecting Mailings

Letters that are mailed to borrowed, created, or purchased lists of people who have never given

to your campaign before are called prospecting mailings. These letters are sent to a list of

prospects in the hope that some portion (anywhere from .25-3%) of the recipients will give, and

then those people who do will be moved into the housefile list for future mailings.

Prospecting is both an art and a science, and even the best direct mail copywriters in the business

are shooting for prospecting mailings that break-even, or slightly better. Because you are mailing

to a brand new list, your goal for these mailings is to simply make your money back – but in

addition to making your money back, you get something very, very valuable: a group of people

who are willing to contribute to your campaign, and who you can re-solicit over and over again.

Basically, prospecting mail looks like this:

First, you buy, rent, or trade for a list of donors who are likely to give to your campaign (perhaps

they have given to a campaign like yours in the past, are active members of your political party,

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or are subscribers to a magazine that shows they are interested in your campaign’s key issue

areas. There are thousands of list brokers in the US alone that rent lists of all shapes and sizes.)

Then, you write a letter and send it to a portion of the list as a test (I would suggest no fewer than

1,000 people, no more than 5,000). Be sure to rigorously track results.

If the test mailing is a success (meaning it at least breaks even), then go ahead and mail to the

whole list (or a larger portion of it). If the mailing is not at least break even, then you need to

either re-write the letter, find a new list, or both.

Any new donors that come in through the prospecting mailing are then added to your donor

database / housefile donor list, and you keep mailing them on a regular basis.

Because the fortune is in the follow-up, if you start doing prospecting mailings, you’ll want to do

at least two, if not three or four, housefile mailings per year to raise money from your house list

and provide return on your prospecting investment. Don’t start doing prospecting mailings three

months out from Election Day – you won’t have enough time to make money by breaking even

on the prospecting mailings and then adding those that give to your housefile list. Prospecting

mailings should be launched as early as possible in your campaign cycle, at least one year out

from Election Day, if not more.

When it comes to direct mail prospecting, the money is in the follow-up!

As you can see, the real money with prospecting mailings is in the follow-up. You (hopefully)

break-even on the first mailing, but then re-mail those who do give over and over again.

#1 Tip for Prospecting Mail

If your campaign decides to engage in prospecting direct mail, and no one on your staff has any

experience with prospecting mail, my best advice is to hire a fundraising direct mail consultant to

help you write your letters and pick your lists. Prospecting direct mail is a science, based on

testing, re-configuring, and testing again, all based on raising conversion rates (the number of

people who donate in relation to the number of letters mailed). Prospecting can be expensive –

you’ve got to rent the lists, design and print the letter, stuff the letter, and pay for postage. The

best way to see a positive return on investment is to use a professional.

Once you get the hang of it, I absolutely think it is something that can be done in house (even

picking lists to mail)… but for your first couple of times doing this, I would recommend letting a

professional show you how it is done, either by hiring someone on staff with direct mail

experience or by hiring a direct mail fundraising consultant.

For your housefile mailings, most campaigns will be able to handle those letters in house. You

don’t need to buy a list, since you are mailing your current donor database (either the whole list

or some portion of it), and if you are a competent writer with a strong knowledge of your

campaign’s work and your candidate’s issues and at have at least some fundraising abilities…

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you should be able to write successful housefile mailings. That being said, there are of course

consultants that work on housefile mailings as well.

Structuring Your Housefile

Building your housefile is easy – everyone who has ever given to your campaign, by any

method, is on your housefile. Thus, your housefile is basically your entire donor database.

While building your housefile is easy, structuring your housefile for mailing purposes may be a

bit of a trick. Basically, you will want to segment your housefile donor universe in constructive

ways to make sure they are receiving the right messages. The most common example of this is

having a low-level donor housefile, that receives lots of low-level direct mail, a mid-level donor

housefile, that receives some direct mail and some event invitations, and a high-level donor

housefile, that only receives a few significant asks through the mail, then lots of other non-ask

communications from the campaign.

I have also seen campaigns structure other sub-lists in their housefiles based on demographic and

geographic factors.

Designing Direct Mail that Works

Whether you are engaging in prospecting mailings or housefile mailings, your direct mail should

be designed so it grabs the readers’ attention and convinces them to give. To achieve those ends:

Design for Both Scanners and Readers

It’s sad, but true… most people who receive your direct mail letter (particularly your prospecting

letters) will walk your piece to the trash and look at it for only a few seconds. Others will scan it

and then throw it out. Only a precious few will actually read the whole thing.

Thus, you’ll need to design your fundraising mail so that it grabs people’s attention, even if they

are only scanning the letter or only giving it a cursory look on the way to the trash. Thus, we

want to design our fundraising mail to be compelling for both scanners and readers… this means

including lots of headlines and white space, lots of bolded and italicized text, and lots of bullet

points and pull quotes, as well as great text content (for deep readers).

Remember what People Read First

Your average reader looking at a direct mail piece will read the first line, the bolded and

italicized words, any headlines, captions on pictures, and the P.S. – What does this mean for

you? It means that you should design your direct mail piece so that a person who reads the text

this way can understand what you are saying and hear the call to action. Use the first line, bolded

words, captions and your P.S. (and P.P.S., and P.P.P.S.) to tell your story and ask for money.

Then, use the rest of the letter to fill in the gaps.

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Ask for Specific Amounts

Have you ever received a fundraising direct mail letter that included words like this?

“Please give your most generous contribution of $50, $100, $250 or more today to help

Jack Ryan win this election!”

Did you ever wonder why so many campaigns use formulas like that for their asks? The answer

is: because it works! People give more when they are asked to give a range of specific amounts.

Those amounts can be determined either by what they have given in the past (for housefile

folks), what they can most likely afford to give (for prospecting folks) or be based on some

general numbers. No matter what way you go about it, ask for a range of specific amounts.

People like Variety

When you are mailing to your housefile, keep it varied! You can reasonably, and with very little

complaint from the folks on the list, mail to your housefile once per quarter (meaning that you

send them one piece of fundraising direct mail once every three months, in addition to the

campaign’s other non-fundraising communications). For many campaigns, you can send direct

mail to your housefile as often as once per month without encountering serious resistance.

If you do mail every quarter or every month, people will soon get tired of reading the same types

of direct mail letters over and over again. The solution is to change it up – be creative, and send

your housefile various types of fundraising direct mail. Some popular themes include:

The Questionnaire – Ask your donors to send back in their thoughts, as well as their

donations

Letter from a Supporter – Have a celebrity or locally famous political endorser (or

another well-known supporter) sign a fundraising letter.

Certified Letter – One of my favorites. Send your mid- and high-level housefile donors

each a certified letter (yes, an actual USPS certified letter) with hot, breaking news and

an urgent ask. If you‘ve built a great housefile and communicated with them regularly,

this could be your biggest housefile mailing of the year (do not try this unless you have a

large enough high-level housefile segment and you have communicated regularly with

them for at least a year).

Direct Mail Consultants

As I mentioned above, fundraising direct mail, and particularly prospecting mail, is a science that

has been perfected over the past 40 or 50 years by professional practitioners. Today, there are

hundreds of qualified (and some not-so-qualified) fundraising direct mail shops in the United

States, and many in other countries as well.

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If you‘re going to be using lots of prospecting mail then I recommend you use a qualified

political fundraising direct mail shop, at least for your first few mailings. Depending on the

scope of your contract with them, these firms will write your letters, cull your housefile, choose

which prospect lists to mail to, work with the print shop to print, stuff, stamp, and mail letters,

and help you analyze the returns, all for a reasonable price.

In order to work successfully with a direct mail consultant, I suggest the following:

1. Check references. Interview prospective consultants in-depth, and then check at least 2-3

references. There is no licensing in this industry, so the rule is buyer beware.

2. Remember that everything is negotiable. Be sure to negotiate your fees before you sign the

contract.

3. Trust but verify. Your consultant may be a professional, but he or she isn’t infallible. Check

and double check the lists, the letter, and the returns.

4. You have to be comfortable with the letters. Have someone on your staff review each and

every letter before it goes out. Don’t approve any mailings where you are not comfortable with

the language or theme of the letter.

5. Watch your return on investment. If your letters are consistently losing money or not

performing the way they should be, change course, change the text, change the lists, or change

consultants.

Please note that as a general rule, direct mail consultants, copywriters and mail houses will not

work on a “percentage basis.” This means that you are unlikely to be able to find a good,

professional, successful direct mail consultant who will work for you in return for keeping a

percentage of what your letters raise. Expect to pay your direct mail copywriters a flat fee, and

mail houses a per-letter fee to handle your mail.

Test, Test, Test!

As you can see from this module, whether you are using a consultant or not, the key to

fundraising mail, and particularly prospecting mail, is to test… test… test! Everything must be

tracked and tested. If something isn’t working, make a change. Over time, you’ll increase your

response rates and decrease your costs.

Sample Direct Mail Fundraising Letters

The next several pages contain actual fundraising direct mail letters that worked for political

campaigns over the past several years (campaign names have been changed, as have identifying

characteristics.) While these provide a great template / starting point, remember that every

campaign is different, and that every campaign will need to figure out what works well for your

donors and prospects.

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Thurston Howell for Mayor

Mr. Edward Ryan

177 Wake Avenue

Gilligan’s Island, NJ 07078

Dear Edward,

I have some great news to share with you. Over the past few

months, our campaign has continued to build momentum and gain support

all over Gilligan’s Island. In every corner of the isle, people are

responding to our message of lower taxes, less crime, more jobs and a

growing economy.

Recently, I was endorsed by the Carpenters’ and Meat Cutters’

Unions, who joined the Teamsters, Painters, and Firefighters in

lending their support to my campaign. Over the coming weeks, several

other unions plan to officially endorse my vision for a growing,

prosperous island paradise.

Together, the unions that have endorsed me represent over 75,000

members. Their support is crucial in building an army of Election Day

workers that is unprecedented in Gilligan’s Island political history.

The Thurston Howell for Mayor campaign has already recruited over

5,000 volunteers to work on Election Day, making sure that every

Howell supporter goes to the polls and that we get a fair count in

every single polling place.

This month, Gilligan’s Island Lifestyle Magazine made the first

endorsement of a political candidate in its nearly 50-year history.

In endorsing me, the magazine’s editors singled out my plans to slash

the island tax rate, and find innovative regional solutions to local

problems. From unions to the press, the Lagoon to the top of the

volcano, it is clear that my vision is resonating in every part of the

isle.

My campaign has continued to lay out bold ideas for moving

Gilligan’s Island forward. Just a few of plans we recently presented

include:

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A strategy for supporting small businesses throughout the

island

Plans for reducing crime and correcting the alarming

spike in violent crime in the main village, and

A blueprint for slashing the island tax rate by 22% and

immediately ending the luau receipts tax

Over the remaining weeks of this campaign, I will continue to

present ideas for fixing what is broken and for returning Gilligan’s

Island to an idyllic isle that is growing in jobs and population. I

will continue to campaign vigorously in every neighborhood,

registering new voters, signing up new volunteers, and making sure

that every voter hears our message.

As I campaign, it is clear to me that our Islanders want change…

they are tired of the corruption and cronyism in Village Hall. They

want to see businesses, and families, moving back into the island.

They want to see Gilligan’s Island moving forward again…

…and they want to be part of making it happen.

The enormous outpouring of support for my campaign has been

amazing. Thousands of people, from every neighborhood, ethic group,

and political party have signed up to work with our campaign on

Election Day. Tens of thousands more have joined us at rallies, block

parties, and other events. The message is clear… the time is now… we

can and will win this election.

I want to thank you for all you have done to get us where we are

today. Your support has meant a lot to me. With your help, we have

raised over $7.6 million, and spread our message throughout the

region. Thank you.

I am writing because I need your support again. Make no mistake

about it – while we can win this election, we still face an uphill

battle. Over the next 43 days, my opponent will be working hard to

maintain the status quo. We must have the resources we need to wage a

strong battle, both on the airwaves and on the streets.

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Your financial support is critical to our ability to wage a war

over the airwaves, keep our offices in the field open, and put an army

on the streets on Election Day. Your most generous contribution of

$25, $50, $100 or whatever you can afford will allow us to continue

building momentum… recruiting volunteers… running TV spots… and win

this election.

We had a great summer – and we’re having a great fall. The

energy and excitement that our campaign has generated proves that we

can… and will… win this election. But I can’t do it without your

help. Please return your contribution in the envelope provided as

soon as possible, and let’s get Gilligan’s Island moving again!

With gratitude,

Thurston Howell III

P.S. The Howell for Mayor Campaign continues to build momentum and

share my vision of a growing, prosperous Gilligan’s Island. You’ve

been a great supporter of my campaign… and I need your help again.

Your most generous contribution of $100, $250, $500, or whatever you

can afford will help us wage a spirited campaign on the airwaves and

on the streets. Please send your contribution today!

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© 2016 by Joe Garecht. All rights reserved. 11

Marvin the Martian for Governor

Susan Roberts

100 Rand Street

Apt #4

Giuliana, Virginia 22040

Dear Susan,

Virginia is in trouble, plain and simple.

Our economy is sagging, our taxes are rising, our education system is underperforming, and our seniors

and families are suffering. Virginia is heading in the wrong direction.

Virginia has all the resources to be the best state in the Union, but it will not be accomplished under our

current leadership…

…Governor Wylie E. Coyote has driven us down the road of higher taxes, higher government spending,

declining job growth and a political culture of putting political friends above our own citizens.

It is time to stop Wylie and turn Virginia around. We can and must do better.

Virginia is clearly ailing, and four more years of Wylie E. Coyote is not the cure.

And, as if our state was not facing enough challenges, the Governor cheered on a massive governmental

pay raise in spite of the clear wishes of the voters. It is simply more of the same old insiders’ game where

the taxpayers get gouged again and again.

The only way we can save Virginia is to change course, change leadership and change our Governor. It

is time for us as Virginians to stand up and take control of a state government that is too large, too

expensive, and too infested with special interests to be efficient.

That is why I have formed the Marvin the Martian 1988 committee and why I am asking you to join my

team to take on Wylie E. Coyote.

I believe we must roll back Wylie’s massive tax increases on families. I believe we must eliminate

punitive business taxes, and build a Virginia where good-paying jobs are plentiful.

I believe our children can get a good education without bankrupting our citizens and I believe we can all

be proud of our government rather than ashamed of our Governor.

It is time for a change and I believe Virginia is prepared to hear this message.

Virginians have come to realize that we can no longer rely solely on an economy that is based on the

businesses of the past. We must broaden our economy and create a climate where all businesses – and the

jobs they create – are encouraged, not punished.

Virginians know that a government whose culture is based on political rewards instead of rewards for

Virginia families is wrong. Virginians realize that Wylie E. Coyote has grown our state government,

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grown our tax bill, and grown our list of anti-business and anti-family regulations. He has grown

everything except for the ability for our children to find work in today’s Virginia.

Virginians realize that we need to establish a culture of freedom and responsibility to replace the culture

of entitlement and dependence. We need to pass true tort reform to end lawsuit abuse and welcome

doctors back to our state.

The fact is that while we are 3rd in the nation in government spending on economic development, we are

at the bottom, 42nd, in economic growth. This is the legacy of the Wylie E. Coyote Governorship.

We simply cannot wait four more years to fix these problems. Something must be done now.

We need gubernatorial leadership on issues that matter most. We need someone who will stand up to the

Harrisburg special interests and the other entities that feed on government and say enough is enough. We

need to replace Wylie E. Coyote.

That is why I need your help in this campaign.

I know that if I have your support, and the support of the millions of Virginians who are tired of the

spend-more and deliver-less mentality of our state government, we can change the direction of our

commonwealth and return Virginia to its rightful place as an economic powerhouse.

With your help raising money, raising awareness and raising our voices, our battle cry will be heard and

we can and will win.

I am willing to re-enter public life and run for Governor because I want to bring strong, Martian

leadership to Virginia.

Together we can turn Virginia around. I have enjoyed helping run successful businesses and being heavily

involved in my community since I served as the state overlord, but I have come to realize that this is not

about me, this is about every Virginian. We all must pull together. The last few years have only made

me stronger in my conviction for change. That is why I am coming to you now to ask you to join me in

this campaign.

Your early support today will send a message to the Wylie E. Coyote liberal special interests that change

is coming and a message to the families of Virginia that hope is near.

Make no mistake about it… this is a battle. The forces of the special interests aligned with Wylie don’t

want me to run. They would like a weaker candidate. They will try to attack me to avoid talking about

their own failed record. But I know what it is like to run a tough campaign and the dirty tricks the liberal

special interests can pull.

Wylie E. Coyote will have a war chest exceeding $40 million dollars to attack me and fellow Martians

throughout the campaign without regard to truth or facts. Liberal groups from around the planet will be

helping Coyote, pouring money and manpower into our state.

But with your help we will not only fight back, we will win.

The grassroots team I will build with your contribution of $35, $100, $250, $500, $1000 or more will

allow me to match Wylie E. Coyote dollar for dollar and match him street by street, neighborhood by

neighborhood and town by town all across the Commonwealth.

I must have your help now to make it happen.

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The Wylie special interests won’t wait and you can’t afford to wait either.

Will you join me in this fight by sending in your donation today?

Please send the most generous contribution you can – of any amount – today. Send it to Marvin the

Martian 1988 so that I can know that you are standing with me, and other Virginians, in the effort for

change.

There is too much at risk to sit back and wait for other shoes to drop. The next shoe could literally be

another wave of job losses or tax increases from the Coyote administration.

Please help me bring a new day to Virginia.

Thank you for your commitment to our principles and to the people of Virginia.

Sincerely,

Marvin G. Martian

P.S. We can build a brighter, more prosperous Virginia with your help. Please do not delay. Every day

of delay is one more day that Wylie Coyote and his special interest allies have to prepare. Please send the

most generous contribution you can today.