Premium Considerations

Premium Considerations

Oct. 4, 2005

By Abny Santicola, associate editor, FundRaising Success

Premiums in direct-mail campaigns can help pull better response than mailings without. But it's important to consider the added expense of mailing premiums in relation to the lifetime value of the donors those premiums bring in, according to Dennis McCarthy, vice president of relationship-marketing firm Epsilon. Generally speaking, he says, people who make gifts based on premiums tend to not have the same lifetime value as a traditional donor.