ALA Editions Webinar: How to Create New Revenue Streams for Your Library
•Download as PPT, PDF•
3 likes•514 views
ALA Editions Webinar: How to Create New Revenue Streams for Your Library with Ed Rossman
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (12)
Similar to ALA Editions Webinar: How to Create New Revenue Streams for Your Library
Similar to ALA Editions Webinar: How to Create New Revenue Streams for Your Library (20)
More from ALATechSource
More from ALATechSource (20)
Recently uploaded
Recently uploaded (20)
ALA Editions Webinar: How to Create New Revenue Streams for Your Library
- 1. How to Create New Revenue Streams ForYour Library Presented by Ed Rossman Monday, September 12, 2016 Presented by ALA Editions eCourse beginning October 17, 2016 and continuing for 4 weeks
- 3. Chapter 1: Context TypicalPro ble m TypicalRe actio n Cuts in State Funding Cutting Hours Rising Health Costs Cutting Personnel Rising Material Costs Cutting New Material Rising Repair Costs Cutting Expenses in Programming and
- 4. Chapter 2 Public Broadcasting Roles Model Public broadcasting transition NPR near bankruptcy in the 1980s Underwriting guidelines
- 5. 4 Steps of Sponsorship Development 1. Discovery Staff brainstorms for prospects Personal introductions? 2. Cultivation Can we come back and really talk? 3. Solicitation Here’s what we can do! 4. Stewardship Acknowledge their support Keep connected
- 6. Chapter 3: Broadcasting Model Revenue earned through ads Value based on considerations like: Length/exposures Time of day Popularity of placement area Product categories Impression projection / Value Ch. 4
- 7. Advertiser Product Categories Po te ntialadve rtise rs pro duct cate g o rie s arrang e d by De we y De cim aland Library o f Co ng re ss classificatio ns (De we y and LO C) Adve rtise r Pro duct Cate g o ry 000; A; Q; P; Z Computers; Telecommunication services*; 300 H; K; L Financial and Legal services*; Insurance*; Schools 900; D, G Travel services*
- 8. Chapter 4: Establishing Value How to justify the pitch to the sponsor Biggest rookie mistake: undervaluing what you have to offer.
- 9. Advertising Rates Formula / CPM Cost of exposing 1,000 audience members to a message, dividing the total cost by audience (in thousands)
- 10. Calculating CPM $500 monthly sign cost 30,000 patrons passing by 500/30 = 16 CPM Compare to CPMs in other mediums in your market
- 11. Chapters 5 and 6 Legalities and Contracts Santa Maria case study Plan for wiggle room in case things go wrong!
- 12. Contract Checklist Each revenue contract should contain these elements: 1. Logistics confirmation 2. Copy confirmation 3. Billing process 4. Deposits procedure 5. Implementation process
- 14. Features, Advantages and Benefits Features Advantages Benefits Characteristics What they do How they help Generating Revenue Without taxpayer burden Convenience Promotion/publicity Under-utilized space used Providing more: •Materials •Programs •Services Supply Vending machines Sponsorships Patron convenience Promotion/publicity opportunities Support as needed Enhancing library offerings to the public
- 15. Chapter 8 Impact of Technology Crowdfunding: 2nd-Graders Use It! Much better than selling lemonade.
- 16. Crowdfunding Bible Study success 1. Product 2. Pitch 3. Video 4. Incentives 5. Goal 6. Campaign
- 17. Chapter 9: Grants and Partnerships
- 18. The Money Matrix
- 19. Five Fast Track Methods 5 ways to quickly earn development campaign revenue by the end of 2016. Method 19 - Fifty / Fifty Raffles - October - $400.00 by year's end Method 20 - Gift Shops: Online- October - $400.00 by year's end Method 29 - Naming Rights: Own-a-Day -November - $200.00 by year's end Methods 5 and 31 - Advertising in Calendars & Special Publications; Publishing-December - $250.00 by year's end $1,250.00 generated for Development Campaign by year's end. Use for incentives for the big year end push using: Chapter 8 and Method 15 - Crowd-Funding-December - ? you set goal!!! Utilize the "2nd ask" and "year-end write-off" tactics. Incentives based on a gift ladder; a cup for a $25.00 donation, hat for $30.00, etc.
- 20. Fifty/Fifty Raffles •Before anything, check the statutory regulations governing your organization at every government level. Laws may not apply to your type of organization, but there could be scenarios where a law applies to your funder. You wouldn’t want to jeopardize that! •Set up an easily auditable procedure for collecting and disbursing funds. •Determine the timing of drawings. Once a week? Once a month? What would be sufficient to build and keep awareness, get people to participate and still have a good size payout? •What announcement method will you use for both encouraging people to play and announcing winners. Can you say who it was who won, give them the option to remain private, or are you legally obligated to announce the winner’s name?
- 21. Online Gift Shop
- 22. No Up-Front costs except your time
- 23. Own-a-Day Naming Rights In this method, someone’s name is placed on available spaces on an organizations’ promotional channels, like the website, a calendar of events and on all the receipts slips for that day. They are also featured on other electronic media like emailed newsletters, the library Facebook page and Twitter account. The source of revenue would be from the public and businesses. A commercial example is the Cleveland Indians Scoreboard Announcement program. They have a limit of 15 names per game, charge $50.00 a name, to commemorate someone’s birthday, retirement, almost anything except wedding proposals! Professional photo is included.
- 24. James V. Brown Library
- 25. Broadcast concepts in play Different rates and language for businesses $100 Business rate 10,000 impressions (foot traffic, page views, etc.) 100/10 = 10 CPM Compare to CPMs in other mediums No matter if sales are to public or business, the process flow below is useful
- 26. Own-a-Day first steps This method should have a low start up cost. The following questions should be answered before putting this method into place: Who: Should you have separate rates for the public and businesses? Will there be certain categories of businesses not allowed to participate? What: Name / Brand prominence; text only or can images also be used? When: A specific date is being used so you will need a good calendar system to handle reservations as well as cancellations. You’ll need a “due date” for deposits or payments, as well as pictures or images if those will be used. If you do use patron pictures, have a “backup” image to superimpose their name over in case they are shy or can’t get the image to you in time. Where: This decision helps set the value in terms of CPM. Determine every location where the name is displayed, then the average impressions it will receive. How: Determine your procedures for copy. How far out does your copy/name need to be in to be placed on your web site, Lobby sign, newsletter calendar, due date receipts or any other place you’ll place it? Why: Will you allow advertising or simple acknowledgment language for businesses? Will you have suggested copy or word limits so you don’t have to re-invent the wheel for memorials, recognitions, celebrations or branding?
- 27. PUBLISHING
- 28. Publishing – First Steps Depending on what software you use, start up costs should be low. Labor costs is another story. Perhaps it’ll be a volunteer effort, or you’ll be able to devote staff time to it. Regardless, the following questions should be answered: Who: Who is the target audience for this publication? What: What’s your topic or theme? Local architecture? Recipes? When: Are you timing a release for an anniversary? Seasonal sales? Will it be an Annual publication, perhaps a juried collection with an award? Where: Your distribution channels could include local shops, online platforms, in-house, or schools. How: Publication logistics would include decisions on trim size, the use of color and graphics, binding and page count. Why: Are you spotlighting community history? Are your goals educational or social?
- 29. Crowdfunding Bible Tips 1. Product 2. Pitch 3. Video 4. Incentives 5. Goal 6. Campaign
- 30. Good luck! May your libraries live long and prosper 4 week Workshop in October http://www.alastore.ala.org/detail.aspx?ID=11823 ed.rossman@shakerlibrary.org Facebook.com/rev4lib – Like it, Share it
Editor's Notes
- Thanks for attending this presentation! It’ll pay for my book and E-Course!
- Book combines my 20+ years of library work and 15 years of Broadcast business experience. Have conducted 3 webinars and written an online article in the Public Librarian Briefcase, a publication for the Business Reference and Support Services chapter of RUSA. If anyone today has a colleague who is a reference librarian and liason to your business community, have them consider applying for the Morningstar Public Librarian Support award for an $1250 paid trip to Annual next year in Chicago. Rocky River Public Library attended one webinar and pursued one of the methods, now makes over 1k a month from offering passport services. It took about 8 months to start. Today I’ll introduce through the 9 foundational chapters for 15 minutes or so, then talk about 5 methods that you can start using in the next few months, and potentially make hundreds if not thousands of dollars in new money before years end. Part 1 contains 9 Foundational Chapters, Part 2 has 40+ mini-chapters on the methods, in the appendix is a Money Matrix you can use for brainstorming the methods.
- Chapter 1 lays it out; The tough economic environment libraries and Nonprofits have to provide service under. My solution, make money not excuses There is a positive role model we can follow to avoid a downward spiral; to help us survive and thrive!
- The gov't started the public broadcasting industry, then pulled the rug out from them. NPR almost went bankrupt in the 80's so stations had to learn to be self supportive. When national funding dried up, stations had to move to state and local funding. How did Public Broadcasting address the challenges to raising money through “commercialism”? The professional cadre was more concerned w/ commercialism on a public funded entity than the public. They were strict about "no proximity" at the national level. For instance, a Clinic couldn't sponsor a health program. At the local level, they were more liberal. There are currently a good set of policy guidelines for accepting "underwriting" advertisements. I interviewed the Chief Development Officer of Ideastream, the name of the Corporation for Public Broadcasting consortium in Cleveland; She’s proud that Ideastream now only gets 10% of funding from Feds! ---------------------------------- Ref page ads vs. underwriting http://keeppublicradiopublic.com/2010/07/27/ad-vs-underwriting/
- Besides direct membership drives that we are all familiar with, Public broadcasting has 3 distinct areas of revenue-generating clients: -underwriters , or local businesses….these are local people buying ads; The stations ad policies are very specific about not using hyperbole or inducement language. Just "Support comes from Joes". An acknowledgement with brief identification language affords both parties tax breaks. -corporate support from national businesses…often coordinated w/ ad agencies as part of their overall media buys for the client. -local and national foundations….they often use Run Of Station…or ROS schedules, meaning they can run any time of day. Many development managers have graduated from the Indiana School of Philanthropy. In basic Fundraising they teach about "Moves Management" Moving through a sales cycle. It's all about relationship building!!!! Unless you’re legally constricted from only seeking outside money through Requests for Proposals, RFP’s, you should practice this exercise in Moves Management!!! Move 1. The Discovery Process - Staff brainstorms a list of the top 25 businesses who could possibly be sponsors. After that, targeting who within those companies they should approach, and do they already have a connection to that person. Talk to them, share ideas, find out what are their marketing objectives. Move 2. Cultivation - make a 2nd appt….. Can we come back and talk about what it is you want to do. How we can help??? Move 3. Solicitation - Thanks for the conversation! You showed interest in doing X at Y cost. We could do xy and Z! The Pitch!!! Move 4. Stewardship - Acknowledge their support; deliver on what you promised professionally. Invite back to see their results. Keep connected. The stations try to leverage sponsorship with other events to…. engage the client. The events may be introduction of a program, ribbon cutting, personal tour, etc.
- Review Screen / next technique is used through the industry, using Product categories to target AND separate advertisers. Efficient prospecting / use ReferenceUSA
- Recognize him? Herb Tarlek from WKRP in Cincinnati Page 27 has an exercise using both major Classification schemes. Asterisks are in top 10 of ad spending categories
- Read screen – importance of this chapter Be prepared for your first homework assignment. Broadcasters use Nielsons, Arbitron and other measurement statistics. We have our own, and have to establish others! Automated traffic counters can be very valuable here. Most libraries have them at entrances; new technology is making closer assessments possible. Even without hard traffic stats, one can make observational studies over time or base estimates on checkouts and program attendance.
- 10 minutes in???????????? Real Pro’s look at this “output” metric and you should too. I break this down in the next slide,
- Will take investigative work, local CPMs not common knowledge; call for their advertising rates, should have an in-house mini-library of these anyway. Print, broadcast and electronic media, plus any receipt advertising (method #32) or direct mail companies for your area.
- In the picture above, yours truly stands next to some memorial benches overlooking a Cleveland Metroparks River, almost crushed by unexpected Ice flows.
- The contract is a formal aspect of the relationship. Despite the personal, friendly nature of a relationship you may have with a prospect, a professional contract proves you’re interested in proper stewardship of the library, and respectful of their businesses. Do NOT be contract-phobic. These five points are what the library can control from a procedural viewpoint. Page 48.
- This section deals with getting the word out; and NOT by using RFP’s, unless mandated by your policies or local laws. Http://www.nonprofitmarketingguide.com/blog/2014/07/10/how-this-nonprofit-got-more-out-of-their-annual-report-infographic/ Page 62 reviews the use of infographics and their importance in relaying information, using examples from National Public Radio’s pitch page. One picture is worth a thousand words!
- Using features and benefits is not a complicated process; an age-old sales formula, the graphic is on page 59. Can be used for any target audience; Board, businesses, patrons When you encounter objections to whatever it is your doing to create revenue, this is a formula to follow! ---------------------- Read all top line Read 1 advantage Read vending example
- These girls started w/ a lemonade stand, then created an account on indiegogo to re-open a closed school library in Sausalito CA.
- Crowdfunding Bible is a recent book w/ solid advice. In looking at Hudson’s successful campaign, we can see 6 key areas the book emphasizes. Product – Use of an established platform, they used indiegogo, a well known, safe resource. Page 134 has a comparison exercise that will help you determine which platform is best for you, whether you’re a techie or not. Pitch – Theirs was the importance of Early Literacy needing a comfort zone for story time; it’s emotionally appealing as well as valuable to community Video – Great opening shot, impossible to miss Incentives – For 10 and 25 dollar range contributions, plus others Goal – Not too far out of range for community Campaign – Specific short term timeframe, frequent updates, social media friendly, good timing with Summer Reading program Exceeded goal!!
- Grants sometimes turn on whether you can sustain an effort after their money runs out. This chapter discusses ways to do that without bleeding your local partners. Get their national suppliers with deeper pockets to help! Get them to use money from their national suppliers. Google define co-op advertising, or review the Tip section on page 82.
- The appendix has this great brainstorming tool. You can use it to put the 40+ revenue generating methods immediately into perspective with the foundational chapters concepts. Then each method has a mini-chapter that follows through in detail how to set value, construct policies and procedures that fit that method. What first steps to take, real world examples and implementation exercises that will be a hardball, objective assessment of whether that method will be right for you and your community before you get heavily invested into it. IF you follow through on these, and all indicators are green, then go for the green. Keep the momentum going and start taking the first steps to opening that revenue stream. Question break?
- 20 minutes in??? Next, are 5 ways you can start working on this afternoon. Method 19 - Fifty / Fifty Raffles - October – Starting Mid-Oct – Mid-Dec 8 weeks @ $50 =$400.00 by year's end Method 20 - Gift Shops: Online- October - Starting Mid-Oct – Mid-Dec 8 weeks @ $50 =$400.00 by year's end Method 29 - Naming Rights: Own-a-Day -November - $25 per name, Website and Front entrance sign just 8 = $200.00 by year's end Methods 5 and 31 - Advertising in Calendars & Special Publications; Publishing-December – Choose recipe book from staff and Friends – $5 profit per book, sale of 50 books = $250.00 by year's end / Or, page 105 reviews using currently existing Book-lovers calendar by Workman Press(?) base price is $3.00 (2015) charge $8.00 for same profit spread, $250, and wait for 2017 for a bigger publishing campaign. Whatever, do it early for holiday sales and promote well!!! You have time for both! Crowdfunding info on screen
- We start with a very familiar and effective cash-raiser. Method 19, on page 142; each method mini-chapter has customized moves management and first steps sections. Use Friends to run it and/or build pot! Have great displays and other promotional things near the ticket sale area. Tell the story of what the library does for the community. Moves Mgt: Moves Management Model: Discovery – Target your Friends groups, existing partners, patrons and non-patrons (perhaps through flyers outside the library like at coffee shops, grocery stores, etc). Cultivation- Tap into those Friends groups, existing partners, patrons and non-patrons alike for their input into the development and design of the methods used to achieve maximum exposure and usage.Solicitation-Your proposal, include incentives that might increase use and purchases (maybe non-monetary library promotional merchandise for 2nd place). Stewardship- Have periodic status checks, inspect inventory churn, (how quickly tickets are moving over time), if possible announce winners or jackpot sizes. Inch by inch, it’s a cinch!
- Method 20, page 145 discusses gift shop sales Don’t underestimate what a library brand offers to the self-esteem of your patrons, adults AND children. Using your clothing, coffee mugs or office accessories, or bestowing them as gifts to others, reinforces their self image, whether it’s as an intellectual or geek. This type of merchandising is key to building up your brand. Use CafePress.com to cost out your own products. Center graphic
- 2 options
- Method 29, on page 172 has this award winning method. The Gale Cengage Learning Financial Development Award in 2015.
- Taken on July 16, 2016. 2 weeks out. The James V. Brown Library in Williamsport, Pennsylvania won the Gale Cengage Learning Financial Development Award for 2015 Email about deadlines
- Uuse CPM to setting value exercise for businesses; Start thinking impression, NOT retention, no long message needed Imagine bonding power of this with a child; take photos, post on Facebook. Chucky cheese and make obese or own-a-day and build love of literacy? Process used in many of the methods. E-course will have a whole week of discussion and exercises on this.
- This organization technique is also used in several methods to brainstorm, set policies and develop procedures. Asking who, what, when, etc. will accelerate your implementation and do it in a professional manner.
- 45 minutes in??? Method 31, page 178 Self publishing has been around for a while, and libraries are uniquely gifted with skilled, creative researchers and writers able to take advantage of this trend. A long time Library vendor, Ingram, has created a new program located at ingramspark.com. For a relatively low cost, $50.00 for a set up fee, libraries can publish well researched books and e-books on a wide variety of local topics. On ingramspark.com is a publishing calculator that can be used to determine the revenue that will be generated prior to dedicating resources to create them. This could also be used in offering a baseline when discussing costs with other publishers.
- Suggest a holiday cookbook. Compile recipes, photos, bio’s and anecdotal material. Use your research and organizational skills to quickly create a valuable product
- This method 15, on page 131 is revisited because it’s also easy if you follow the practical steps below. Also, after the other 4 methods, now you have some cash for incentives. Use for 2nd asks (Past contributors) and/or end of year write offs. Crowdfunding Bible is a recent book w/ solid advice. In looking at Hudson’s successful campaign, we can see 6 key areas the book emphasizes. Product – Use of an established platform, they used indiegogo, a well known, safe resource. Pitch – Their’s was the Importance of Early Literacy needing a comfort zone for story time; it’s emotionally appealing as well as valuable to community Video – Great opening shot, impossible to miss Incentives – For 10 and 25 dollar range contributions, plus others Goal – Not too far out of range for community Campaign – Specific short term timeframe, frequent updates, social media friendly, good timing with Summer Reading program Exceeded goal!!
- I hope you apply what I’ve presented here today to give yourself some financial breathing room, in 2016 and beyond. Consider the eCourse where I’ll be reviewing all the methods in depth. Final questions?