Ideas

Discussion in 'Business Ideas' started by M3W, Oct 15, 2010.

  1. M3W

    M3W
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    Hey all,

    I work for a financial group that deals with providing wealth management solutions for primarily retirees. One of my tasks has been to come up with a set of promotional campaigns to integrate golf into attaining new clients. The company I work for is based out of a nice weather location, so it's nice enough year round to play golf and loaded with an older demographic.

    One of the ideas I had was to go from golf course to golf course around the area and offer them a promotion where they give out our information with the use of a form of advertising whether it be a flyer or an informational handout, and in return, for every client that we get, we will pay for a free round of golf at the respective golf course that they found our information at.

    I figure that this is a mutual benefit to both us and the golf courses in that we are getting the new clients who are finding out about us at the course and the golf course is getting our money for the free round.

    Thoughts and constructive criticism are appreciated.
     
  2. Fergal

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    Welcome to Business Advice Forum M3W. That sounds like a great promotional idea and I've seen some other businesses tie up with sports clubs and other types of associations recently. They basically have an affiliation agreement whereby the club or association benefits from everyone they refer. The members like supporting it because it helps their club and it's obviously good for the club because it is a source of revenue for them. The advantage to the promoter is that they only pay a commission once they have made a sale, so there is no upfront advertising or sponsorship cost.

    Why did you decide to pay for a around of golf, rather than simply giving the money to the club?
     
  3. M3W

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    Thanks for the response Fergal. The reason we would pay for their round would be our hook on how to turn the prospect into an eventual client. Meaning if they allow us to work with them and manage their wealth/assets, we would return the favor by offering them a free round of golf at the respective course where they found out about us. It's basically like an incentive for doing business with us.
     
  4. TheEntreprenette

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    I like the concept you are suggesting, let me think about this about other ideas for you

    Regards

    Jo
     
  5. Fergal

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    M3W I understand that you are using the golf round as an incentive to encourage the client to do business with you. What I was curious about was, why you were paying for a round of golf, rather than simply donating the money to the golf club.

    There are some companies who specialise in sponsorship at golf courses, e.g. on score cards, merchandise and signage. However, I do like your incentive based approach more.
     
  6. M3W

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    We were actually thinking of buying up front say 10-15 gift certificate rounds at first from the club and then giving them to the appropriate individuals who became clients.
     
  7. PaulPinnacle

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    Maybe I'm missing something here, but if the money was donated to the golf club isn't this bypassing the benefit to the 'client' and simply giving it to the 'middle man' (in this case, the golf club facilitating the advertising)?

    Perhaps some would consider a 'donation' to their club as a motivational factor, but the cynic in me thinks they'd prefer a tangible benefit to themselves (that said, I'm a non golfer so not sure how much loyalty their is to the 'club', so perhaps that's less of an issue than I believe it to be).

    Trying to look for negatives...
    Is there potential for loopholes to be taken advantage of?
    (e.g. Client signs up, gets the certificate, cancels contract within cooling off period)
    Will it always be a net gain for you?
    (Not essential, but worth considering the net cost of the 'gift' vs. the income of a purchase/conversion)
    Is the benefit to the golf club high enough for them to agree?
    (I always assumed, again I've little knowledge in the area, that the membership for a golf club was expensive but the cost per round there after was negligble)
    Is there a conflict between member prices and non member prices that needs to be addressed?

    I agree with Fergal that the incentive based approach is good, but worth considering some of the other methods he mentioned (e.g. branding of score cards, sponsoring of competitions/prizes, etc.) to increase exposure and awareness (obviously depending on the cost associated with same).
     
  8. Fergal

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    Very good point. I've seen some businesses use a combination approach. They give a portion of the incentive to the club and a portion to the customer. This works well because it is a direct incentive for the customer to purchase through the club and the kick back to the club is a good incentive for them to promote the offer to their members.

    M3W your approach does work well in this regard, because the customer gets the vouchers and the club gets the revenue from the sale of those vouchers. Good luck with it.
     
  9. M3W

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    Not necessarily because the prospect is still getting a "free" round of golf. I say "free" because it's free for them but we are providing them with a paid round, which is how the golf course is benefiting as well.
     

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