Cause Based Advertising

Cause based advertising can increase sales by up to 70% in some markets. So what exactly is cause based advertising?

When done correctly, it can be a portion of net proceeds, that get donated to a registered charity. When done in poor taste, it can be a loose association, showing that the use of your product, will in some way, benefit a charity or cause, but it does not do so directly.

In the first example it’s pretty clear. If you get my product, I’ll donate X amount to a charity, say SPCA, and help save puppies.

The second example is currently exploited by a handful of advertisers, and is in very poor taste, in my opinion. I won’t even explain it, because I don’t want more people – especially ad agencies – doing it. So lets look at the first example where a donation gets made.

Let’s say we’re promoting a 49.95 ebook as an affiliate and get a 50% commission. In normal every day sales, a 49.95 product after Clickbank fees, leaves 45.20 to split between you and the publisher. That’s 22.60 apiece.

Now let’s say you sold 100 units.

22.60 x 100 = 2,206

Not bad. But lets see what happens when we add cause based advertising into the mix. Let’s say that because of our noble cause, we get modest 40% increase in sales (a total of 140), but give a generous 20% of the net proceeds to charity.

22.60 – 20% = 18.08 (our new net proceeds because 4.52 from each sale goes to charity)

140 x 18.08 = 2,531

So if we compare our original sales to the charity one, you can see that we actually increase our net profits by $325.

2,531 – 2,206 = 325 further ahead

Now image you were playing with big numbers and sold 10,000 units. Imagine huge numbers, like a major shampoo brands, or greeting cards, where you’re dealing with millions of units sold.

You can even do this with PPC or CPA ads, selling pet supplies and bypass the search engines altogether. You can put the ad on an ad network like Plenty of Fish, and link direct to the advertiser’s offer, or send traffic to a landing page first.

For example, let’s say you’re an affiliate selling doggie supplies, but in the ad you show a sad puppy saying, “All he wants is a home.” Then say something like, “When you shop with us, 10% of all net proceeds go to the local SPCA shelter. You could save a life, if you shop now.”

That’s powerful stuff. But before you start using this style of advertising, there are a couple of caveats.

Don’t overuse this tactic, or like any other it will quickly lose its effectiveness. Be sure that you actually do donate your net proceeds to the charity that you specified. And that you have the receipts to prove it.

Not only will having the receipt keep you out of hot water with the FTC – because you have to prove all claims – it also provides a return on the back end. That’s right, donations to registered charities can be tax deductions for you, or your corporation.

The bottom line is, cause based advertising increases sales. Up to 70% in some markets. This increases your profits and helps out registered charities at the same time. Plus there’s the added bonus of getting tax deductions on the back end.

Just don’t overuse this advertising tactic and it could serve you well for years to come.

Wishing you all the best for online success,

Michael

P.S.

The affiliate program for Ultimate Heatmap 2.0 is open. If you’d like to join us, you can get a 50% commission on every sale. Direct endorsements leading to the sales page are converting at 11.71%, because this product appeals to such a wide audience, not just the internet marketing crowd.

Every website owner, blogger, designer, advertiser and affiliate can benefit by applying this research. It has a powerful tag line, “Triple the ad revenues without additional traffic.” Plus, there are dozens of banners and ads, ready for you use right now.

You’re the first to know about it. And you can the be first to promote it, starting right now.

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