- At the point of acquisition, youâ€™re losing money.
- By the end of the first year, youâ€™re breaking even among those new donors.
- The following year â€” your second with that group â€” youâ€™re earning a 2-to-1 return from them.
- In the third year, your return rises to around 3-to-1. Starting to look good.
- The real payoff comes in the fourth and following years, when those established donors are returning $10 (or more) for every dollar you spend.
If you donâ€™t get new donors this year, you wonâ€™t have second-year donors next year. More seriously, you wonâ€™t have fourth-year donors in four years. Itâ€™s as if those cuts leave a black hole in the middle of your donor base â€” a vacuum where there should have been responsive, committed donors.”
Thanks Jeff for your words of wisdom.