Profit durability and business sustainability

Profit Durability

The durability or resiliency of revenue streams for nonprofit and philanthropic online initiatives is proportional to their ability to stay relevant to donors (Ebenkamp, 2006). For the proposed website to sustain revenue and be durable, the need for creating multiple revenue streams is critically important. Revenue resiliency also is dictated by donor loyalty to the philanthropic organizations' initiatives and goals (Stannard-Stockton, 2008). On other words donors must see the impact of their contributions to become even more loyal to a site. While no philanthropic organization can be completely immune from a downturn in the economy, there are steps that they can take to alleviate the severe risk of rapid changes in donations. This is an analysis of the proposed sites' profit durability given its unique, differentiating factors and multiple revenue streams.

Analysis of Profit Durability

The proposed site's main revenue source is anticipated to be selling online advertising based on visitor and click-through counts. Combining social networking sites to enhance the stickiness or habitual use of the site is a strong differentiator which will continue to fuel advertising-driven revenue. Having the site be a portal for use by charities also has significant potential (Jones, 2006). Third, corporate sponsorships will eventually lead to a stabilized, annual revenue stream as often sponsorships are renewed yearly if the results are successful. Fourth, completing data mining of visitor information will also be a unique differentiator and allow the proposed site to sell advertising at higher rates due to the insights into the exact audience on the site (Kayhko, 2009). The use of advanced Web analytics to gain insights into donors who are the most active on the site will also differentiate the proposed site vs. others when selling online advertising. Fifth, the proposed site is also going to have a transaction-based component which will allow it act as a clearinghouse as well. This strategy has also proven to also provide revenue resiliency (Brouse, 2010). Combined all of these factors of the proposed site provide accountability to donors, give them a glimpse into how their donations are used, provide stickiness and community via social networks, and diversify the revenue streams based on added services including data mining.

Conclusion