How to Create New Revenue Streams For Your LibraryPresented by Ed RossmanMonday, September 12, 2016

Presented by ALA Editions

eCourse beginning October 17, 2016 and continuing for 4 weeks

Review of Topic

Chapter 1: ContextTypical Problem Typical ReactionCuts in State FundingCutting Hours Rising Health Costs Cutting PersonnelRising Material Costs Cutting New MaterialRising Repair Costs Cutting Expenses in

Programming and Services

Chapter 2 Public Broadcasting Roles Model Public broadcasting

transition NPR near bankruptcy

in the 1980s Underwriting

guidelines

4 Steps of Sponsorship Development

1. DiscoveryStaff brainstorms for prospectsPersonal introductions?

2. CultivationCan we come back and really talk?

3. SolicitationHere’s what we can do!

4. StewardshipAcknowledge their supportKeep connected

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

Advertiser Product CategoriesPotential advertisers product categories arranged by

Dewey Decimal and Library of Congress classifications (Dewey and LOC) Advertiser Product Category

000; A; Q; P; ZComputers; Telecommunication services*; 300 H; K; LFinancial and Legal services*; Insurance*; Schools 900; D, GTravel services*

Chapter 4: Establishing Value How to justify the pitch to the

sponsor Biggest rookie mistake: undervaluing

what you have to offer.

Advertising Rates Formula / CPM Cost of exposing 1,000 audience

members to a message, dividing the total cost by audience (in thousands)

Calculating CPM$500 monthly sign cost

30,000 patrons passing by500/30 = 16 CPM

Compare to CPMs in other mediums in your market

Chapters 5 and 6 Legalities and Contracts

Santa Maria case study

Plan for wiggle room in case things go wrong!

Contract ChecklistEach revenue contract should contain these elements:

1. Logistics confirmation2. Copy confirmation3. Billing process4. Deposits procedure5. Implementation process

Chapter 7: Promotion

Features, Advantages and BenefitsFeatures Advantages BenefitsCharacteristics What they do How they helpGenerating Revenue Without taxpayer

burdenConveniencePromotion/publicityUnder-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

Chapter 8 Impact of Technology

Crowdfunding: 2nd-Graders Use It!Much better than selling lemonade.

Crowdfunding Bible Study success

1. Product2. Pitch3. Video4. Incentives5. Goal6. Campaign

Chapter 9: Grants and Partnerships

The Money Matrix

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 endMethod 29 - Naming Rights: Own-a-Day -November - $200.00 by year's endMethods 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.

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?

Online Gift Shop

No Up-Front costs except your time

Own-a-Day Naming RightsIn 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.

James V. Brown Library

Broadcast concepts in playDifferent 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 mediumsNo matter if sales are to public or business, the process flow below is useful

Own-a-Day first stepsThis 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?

PUBLISHING

Publishing – First StepsDepending 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?

Crowdfunding Bible Tips1. Product2. Pitch3. Video4. Incentives5. Goal6. Campaign

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,

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