Revenue Models
For Social Enterprises
The list below contains a number of business strategies that will make your enterprise financially sustainable after the initial investment. This means you can keep the good work going!
Sell one product - Give one product
Customers buy a product but pay double, so another of the same product can be donated to a community in need. Customers are likely to accept the high price knowing the cause is good. Of course, this means both the customer and the community that benefits from your social enterprise should have a similar need for this product.
Sell a product for the buyer to give away
Customers buy a product and take it to a community in need themselves to give it away there. The price the customers pays includes all the costs the enterprise has to make to provide the product. This strategy also potentially takes away the need to organize distribution. It even means the enterprise does not need to necessarily have a target community in mind - Though the buyers may need suggestions.
Sell a product to make more of the same product
Customers buy a product and with the profit made the enterprise can produce more of that same product. The price of the product sold needs to cover the cost of making that product and give a profit on top of that.
Sell a product to fund something else
Customers buy a product and with the profit made the enterprise can buy another product or fund a service for a community in need. The price of the product sold needs to cover the cost of making that product and give a profit on top of that.
Sell at a cost determined by the consumer
Sell your product, but let the consumer determine the price. This works best with low-cost products. Buyers are likely to pay significantly more than the cost due to the link with a good cause.
Sell a subscription
Instead of selling a product, sell a subscription. This binds the customer to your enterprise and keeps them funding your cause. You could give an initial product away first, but charge for refills needed later.
Help your target community sell a product
Help your target community sell a product by promoting their product in your own community. Here is a cool example:
Example enterprises:
Calculate the financial benefit of your actions and use that to do more
Explain to a business partner that you are saving them money with the product or service you sell to them. Convince them to continuously invest the money saved into your enterprise (so that they can save even more).
Partner with a sponsor
Not strictly speaking a social enterprise, but you could try to convince a business partner to sponsor your cost and give them something in return. For instance positive exposure.
Sell an acknowledgement of contribution
Consumers fund the goal of your enterprise and in return are acknowledged for having done so. Their name could for instance be published on your website or even on (the packaging of) your product. Think of selling bronze, silver or gold sponsorship options.
Do something that only needs an initial investment
Perhaps after an initial investment, you actually have what you need to keep going. This could be the case if you for instance have access to free resources. This would however not really be a social enterprise as there is no continuous revenue stream.