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August 2009 | Volume 12 / Number 8
The Channel Perspective

Channel Marketing Strategies: Give-back Programs

We all know that the economy is in bad shape. People are not spending money. How can a company provide incentive for individuals or companies to purchase phone service from them? Competition is getting stronger and price differentiation is becoming non-existent. While people are moving to VoIP, it is getting harder to compete with the big boys. Many companies are looking to give-back programs to give them the advantage.

Corporate Responsibility. While it is not required, it is taught in virtually every university business degree program that companies need to take care of the community. It is a part of the company’s responsibility as a good citizen. Some companies offer Give-back programs just to use it as a reference, but others are real zealots for the causes that they are supporting.

It is best for these programs to be ongoing programs so the company and the supported organization learn how to work together and support each other’s efforts.

Give-back programs take advantage of one of the strongest marketing techniques available — Word-of-Mouth. Once you have made a customer and the customer knows that you are supporting a specific program that they also want to support, they will tell a friend, relative, associate, or business partner about the product or service that you are selling. Once the word gets out, this can snow ball into serious consumer spending.

Give-back to the Organization. Rackspace Hosting is a great example of a company that is giving back to organizations. They have a program that is very well defined on the website and it is easy for local organizations to apply for the grants that Rackspace provides. To name a few:

  • Family Service Organization
  • Junior achievement
  • The King William Fair
  • Websites for Heros
  • The Fund
  • Girls, Inc.
  • San Antonio Food bank
  • The Children’s Shelter

The Rackspace give-back program is a good example of a organizational give-back program. Check it out at: http://www.rackspace.com/information/events/rackgivesback.php.

Organization where VoIP will have a significant impact as well as cost savings and where word-of-mouth referral rates will be significant are churches, schools, clubs, charities etc.

Give-back To a Cause. A great example of an organization that gives back to a cause or multiple causes is GoDaddy. They support causes such as the following:

  • Parkinson’s research
  • breast cancer
  • child abuse
  • disabled children
  • domestic violence
  • teenage homelessness
  • animal shelters




This year GoDaddy is projected to break their 1.7 million dollar donation record set last year. They are committed to their causes and as a result, they receive business from individuals and businesses that support their ideals and want to do business with a company that gives back to the causes they also support.

Having been in the U.S. Marines like Bob Parson, I am glad to see that they also make the Marine Corps Reserve Toys for Tots program one of their recipients of their donations. Seeing how it works, I look to GoDaddy in a more favorable light because they are helping an organization to which I feel very close!

MagicJack. MagicJack also has Give-back programs for the channel that give-back to a cause. They will give $4 to Breast Cancer Research or $4 to Juvenile Diabetes Research when purchases are made through selected resellers.

Refer a Friend. Is just what it says. If you refer a friend to a company and that friend purchases product from the company, the company will provide a finder’s fee to you or make a contribution to the charitable organization involved. Depending on the dollar amount or percentage incentive, refer-a-friend promotions can be quite effective.

In summary, while give-back programs may help generate additional sales, give-back programs should first be designed to contribute the local organizational or the specific cause. The primary goal here is to provide the money to the organization that needs the money. This should be done with as much zeal and energy as possible once the organization or cause has been selected. This is where the company can have a significant impact in society and their local community. Companies that get involved via give-back programs help shape the future of the local community, the United Sates and the rest of the world.

This is an activity that should remain in the hands of the company and not be made another government function or program. IT

Don Witt is President of cyLogistics (News - Alert) (www.cylogistics.com).

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