Fundraising Is Key to 2012

Greetings:

It is always interesting to me how much stock most give early polls, while paying very little attention to an aspect of campaigning that most will tell you is most important - fundraising.  Lately, most polls show indications that we should expect to see strong gains at the national level for Republicans in both chambers of the house, as well as the office of President.  However, let me remind you of a few key things, and hopefully energize you to remain engaged and involved.

Just for laughs, I will use the "fun to have fun with" Howard Dean to prove this point. How many of you remember that in 2004, Howard Dean led for some time in the democrat primary, and at this point in the process, most thought he would indeed be the democratic nominee.  Of course, had it not been for this post election "scream", he might have been.  Of course, that doesn't have anything to do with money, right? Well, most attribute his decline to that speech, but actually, the direct impact of the speech was on his ability to raise funds.  See, early in 2004, Dean was leading in fundraising and even set new standards for Democrats. However, after the speech, all of a sudden, the big donors lost confidence and stopped giving money to him.  I am not suggesting that the speech also cost him votes, but I am certain that his potential for winning was diminished more by not having enough money, then by the voters response to seeing that speech.

Hopefully, this will help to illustrate, again, the importance of a campaign being financially stable as well as mentally stable (in Dean's case).  As a result, there is reason to be concerned.  Currently, the Republicans are losing to their counterparts in this very important aspect of campaigning.  According to article by USA Today, the DCCC has out-raised the RNCC by 40%. 

As a result of this, there are three very important responses that I want to suggest.

1. If you care - donate!  Too many times, those of us who say we are "involved" in politics, don't give.  A key principle to "involvement", when you have invested, you are involved.  Not everyone can give in great amounts, but I am shocked at how few give at all.  If you really want to make a difference, donate!
2. Don't be complacent!  Too often, we watch news that feeds us what we want to hear, and feel good about it.  However, I think it is equally important to pay attention (if not more important) to what the opposing view is.  Adding to this, just because it sounds good, doesn't mean it will end good.  Don't forget that Bush 41 entered the race to hold the presidency with the highest approval rating of any incumbent in the history of tracking, and lost to a guy that few had ever heard of before.
3. Candidates need to improve fundraising!  This is by far the most important.  Most people don't feel comfortable asking for money, but if you want to win an election - you better work at it.  Have a plan, and work daily to execute the plan.  I remember during the last cycle that I was talking with a congressional candidate from the Boston area, and he was trying to decide if he should hire me to consult with his team, or hire an outside strategist.  Unfortunately, he chose the latter, and never had a fully funded campaign.  If you don't have a "supply-side" plan, the strategy won't matter, because you won't be able to implement it.  Lastly, one of the people I respect most in campaign work, Pat Rosenstiel said this, "I have met many candidates who wanted to be elected, but I haven't met one who got wasn't successful in raising money."  

More to come on funding plans, as well as our upcoming "Funding It Right" tour. 

Sincerely,

Steve Boyett

Five Keys to a Cash-flow Positive Campaign

Greetings:

Are you, or someone you know, considering running for office?  If so, STOP, and answer this question - how will you get the financial support you need to WIN.  Notice, I didn't say, make a showing or build recognition for the future - but to WIN.  Obviously, the amount that is needed will be different in every race, but the most consistent absolute in politics is: if you can't ask for the money - you can't win!

During the last cycle, I met a guy from Minnesota who worked on many political campaigns and he said something that has stuck with me ever since - he said, "I have met many people who wanted to be elected, but I haven't met many elected officials who couldn't ask for money!"  That comment combined with my desire to find a way to impact the political climate of our country are the reasons that I have started Strategic Campaign Fundraising!

It seems to me that too many of our gifted candidates genuinely struggle when it comes to asking people to support their campaign, so I am committed to work toward a solution minded approach to helping get rid of that problem.  It all boils down to having a strategic plan that is based on critical assumptions that are constantly evaluated, and then the execution of the plan.

That strategic plan has two main sides to it:

1. Campaign Strategy
2. Funding Plan

Though these are completely different one can't work well without the other.  The first critical step to building a successful Funding Plan is to make sure it will meet the needs of the Campaign Strategy.

This sounds as if it is so obvious that it is ridiculous to even say it, but you would be surprised - this is usually where the campaign fails first. Once there are difficulties with the campaign funding, the potential for disaster exists.  Below are five keys to help make sure your campaign is a cash-flow positive campaign.

1. Start by learning how to raise money.  There really is a right way and a wrong way to go about this.  There will be much information on this blog in the future - but if you would like to talk sooner, my cell phone will be listed at the bottom. 
2. Develop the campaign's platform.  This will take minimum financial resource up front, most of which can be raised easily by your most loyal friends and family, and is the critical piece to "how" you will be successful raising money.
3. Show a conservative methodology to spending that mirrors the message of the campaign.  This is really the first place a candidate will be judged.  If you can't manage your campaign - you are not qualified to hold an office.  
4. Create a vision for the campaign - not just the "what you will do if elected" but more importantly the "how you will win".  People with resource fund vision that they understand.
5. Communicate effectively with past donors and potential donors.

 Hopefully this information will help you or someone you know start out successfully, because if you don't start well, it is hard to finish well.

Steve Boyett
256-682-7426

Successful Launch of a Campaign

It is time for candidates all over to begin to take the necessary steps to run for office.  Though the "office" can vary significantly, there is one key aspect to a successful campaign that will not - funding it!  Normally, candidates work on putting a staff together, creating elaborate position statements, planning strategy, etc, however, the most critical aspect to their success (except for their platform) is hardly given a passing thought, and that of course is the answer to this question: "How will all those initiatives be paid for?"

Whether you are running for city commissioner or president of the USA, your campaign has to be funded to be successful.  Granted for local races, the amount of the funding is less important, and sometimes, name recognition will be supreme in importance, but other than that exception, funding is consistently a key to determining a winner.  This is both a significant problem, and an amazing opportunity.

If a candidate is able to enter a race with a solid "campaign funding plan" and executes that plan successfully, he/she can often limit competition.  As a result, there is less need to spend as much of the funds in the primary, increasing the potential for advancing through the primary with resources left to fight all the way through the general. So, what does a campaign funding plan look like?

There are many pieces to a funding plan for a campaign, and over the next month, I will break down components of a plan, and give specific action steps toward success...please share with others.

Funding Your Campaign

Greetings:

Hard to believe, but it is getting to be "that time" again.  Already, the early contenders are beginning to work toward building momentum, and we all know the best way to do that...raise money.  That's right, NOT spend money.  However, usually the first thing a new candidate does, is work on a strategy, hire a consulting team (or staff) and then they typically begin to say... we can do this and that, but we need to raise money.

I will be the first to say, that it is possible to win a campaign without raising the most money - just look what happened in AL05 last cycle where Mo Brooks defeated a well-funded incumbent (though he did switch parties) in the primary, and then took out a better funded Steve Raby in the general - neither very close races.  However, this is the exception to the rule - not the norm.

Raising funds for a campaign can be tricky.  There are many schools of thought, from direct mail, phone call campaigns (dialing for dollars), outsourcing, PACs, meet and greets, events, to social media (not a complete list - but you get the picture), so I am often asked, "What works best?"  The answer..they all do.

It is imperative that there is a solid strategy that fits both the candidate and constituency.  For example, raising lots of money from outside a congressional district can be a positive and a negative.  In some districts, this will be considered a major problem, while in others, it is hardly mentioned.  In some districts, having a successful event strategy will raise most of the funds needed (especially in large cities) while in more rural settings, these strategies are not very helpful for raising money.

I will be doing a series on these strategies and some insights to how to make them work in a campaign setting over the next month, please share with anyone that you think it will help.   Then, watch for announcements about one day trainings on campaign funding later this year.

Sincerely,
Steve

The New Direction at the RNC

Greetings,

I hope everyone is off to a great 2011!  There is a wave of excitement with the new congress and the hope of a new president in 2012.  However, as it has been well documented, that isn't likely to happen unless the financial balance scales tip toward the GOP.  For the past two years, Michael Steele (who I will admit thinking was a great pick at the time) acted poorly as the leader of the RNC. When Mr. Steele first took over, there was a $25 Million in the bank, and he leaves Reince Priebus with a $21 Million hole to fill.  That is not all that Mr. Priebus will have to fix, as this article by Karl Rove clearly points out, but if that problem isn't fixed, the rest of what he works to accomplish will be in vein.

Today, there was a great article in the USA Today (I know - doesn't happen often) about how much is already changing. Mr. Priebus is working hard at changing both the perception and the practice of the RNC, freezing spending and working late (not on the TV circuit). I don't doubt for one second the heart that Steele felt for his position, and believe that there were some things he did well, but do agree that there needed to be a change. 

First, a "well-done" for Mr. Steele on his part for firing Pelosi.  The republican wave in 2010 was strong, and there are many factors, but to discount what Steele was able to do, would be a mistake.  However, most seem to point to campaigns like that as one of the reasons for the "net negative" for his two years of leadership, and that is also a mistake. If done correctly, a campaign like "Fire Pelosi" would raise money - not cost money.  But that wasn't Steele's focus, he was a spender, and thought that money would follow success. 

Second, just because someone identifies a problem, doesn't mean they know how to solve it.  Fund-raising at this level is tricky - because you are dealing with people who have agendas AND are used to getting what they want.  However, the most important aspect of raising funds from "high donors" is to have an easy to understand strategy, and to demonstrate it's effectiveness.  Major donors want to KNOW that there contributions will be respected and purposeful - as do all donors.

Mr. Priebus is in a difficult position, but also one where there is much opportunity.  I for one, believe he will be up to the challenge!  If you would like to help get this new era off to a great start, here is a link where you can.

The Near Future and the GOP

I have a growing concern about the upcoming 2010 election - the closer it gets, the more the GOP is behind in fundraising.  Add to this, that in most people's opinion, the GOP has lagged in campaign strategy since the DEM's changed the meaning of "is" (save Karl Rove), and there is much reason to be concerned.

There are two critical areas that must be fixed before the 2012 elections (it is most likely too late for 2010):

1. The GOP must train up a new generation of campaign consultants (not rogue anti-establishment "RINO" name calling radicals) who will be able to keep good candidates on message so we can win close races.
2. The GOP must be funded!  To do this, candidates must be strategic in the way they raise money (can we quit dropping money bombs please) and donors must be more careful not to waste their resources on candidates who can't win.

First, on the strategy side, one organization that is working to help train future strategy experts is The Leadership Institute.  I have met a couple people who have attended, and quite frankly, they seem like two of the best thinkers in this region with regard to strategy - even though we don't agree on everything (they might think me a RINO, but wouldn't say it). See the key to running a winning campaign isn't about always having the right answers.  How could President Clinton make such huge mistakes in his first term, and get re-elected.  There are more theories than reality, but I say it boils down to just ONE - "strategery"!  The Dems have been winning this game for some time, and it isn't just because they lie, it is because they want to win elections more then win the current argument.  We need strategist who understand this, and help their candidates run winning campaigns. 

Next, on the funding side of elections.  Take a look at the most current numbers from Open Secrets with regard to current candidates.  You will notice that things in Senate races seem to be about right, but when you look at the stats for the congressional races, things are not so positive.  Look at the average amount of cash on hand (money that can be spent to overcome strategy weaknesses), the Dems hold a 2 to 1 advantage. 

I am not here to forecast doom and gloom to the GOP, but instead to raise awareness to those who believe that our country is headed in the wrong direction and want to do something about it.  It is not enough to facebook and tweet about your concern AND it is not enough to volunteer to help.  We must begin to study strategy and help candidates win!  Then, we must be discerning about who we donate to and when, so that our resources are not wastd away in poor campaigns, because every dime we give needs to count!

Winning elections takes money and strategy!

How To Finance Your Mission

So, most of us know the phrase "money is the mother's milk of campaigns" and agree with it, but how many can identify exactly where money fits into the success plan?  Too often, candidates are told, "get on the phone and call these people!"  Now, I will be the first to tell you, "dialing for dollars" is better than doing nothing - however, there is a better way to raise money.  Moreover, in order to be effective, there must be a strategy where each communication with a prospective donor fits into a system, when you have all of that in play, your potential for success on the fundraising side increases dramatically.  However, one very important disclaimer, a candidate who has no chance to win, will not be able to raise money, except from close personal friends and family, and I would say to that candidate, you should respect those people enough, not to ask.  Okay, enough on that soap box: but it will be discussed more in a later post.

Raising money is pivotal to success in most campaigns, but the question that has to be answered is; where does that fit into the plan.  Too many times, campaigns will understand the importance, but don't work on a strategy that will maximize potential.  A foundation to that strategy has to be this: Vision drives the success of fundraising and fundraising drives the success of the mission.  I'll explain.

First, in most cases, it is wise to articulate to a prospective donor the reason you are running. Add to that, why you think you will win, and answer any questions that he might have.  This discussion is vital to the prospective donor understanding the vision of the candidate.  Hopefully, after this conversation and after all of the prospective donor's questions have been answered, a successful transition can take place from, prospective donor to an engaged donor. 

Second, as part of the vision discussion, it is important to share the purpose for the donation.  Simply put, this will attach the prospective donor to the mission, which will hopefully engage the donor for further participation. Hopefully, each donor will be willing to share with their friends about the campaign, and share with the campaign, friends, who might want to donate as well. 

By understanding this critical aspect of fundraising, a candidate can now position himself to ask for donations in a much more professional way.  I hope this has been helpful. 

However, I would like to add; most candidates don't like to ask others for money, so even a well-thought out plan will fail if there is nobody to coach the candidate and hold him accountable through this process.  If you would like to discuss this with me, please give me a call - I would be happy to talk with you.

Sincerely,

Steve Boyett
256-682-7426