It’s not always easy to quantify the success of a marketing strategy, especially when it comes to influenced revenue, so sometimes it’s tempting to discontinue a tactic if you don’t see immediate, measurable results. Doing so may be short-sighted, however, because certain strategies might be generating valuable influenced revenue that isn’t immediately traceable.
Influenced revenue for nonprofits refers to income that’s generated indirectly by your activities — such as marketing campaigns, outreach efforts, events, or brand-building initiatives — but it cannot always be directly attributed to a specific action or transaction. This type of revenue is often the result of long-term engagement and relationship building, such as ongoing donor communication, social media interactions, or awareness campaigns.
For example, a nonprofit may run a series of digital ads or a community event that doesn’t immediately translate into direct donations, but it does help build awareness, trust, and engagement. Over time, this can lead to more donations or support that stems from the initial influence, even though it’s hard to trace the cause of the income. Essentially, influenced revenue is the “positive ripples” caused by your nonprofit’s broader activities that indirectly lead to future financial contributions.
In practical terms, influenced revenue might come from donors who first heard about your nonprofit through a social media campaign but didn’t give right away. It might come from people who attended an event and later made a donation after being inspired by the mission. Because the influence is indirect, it can be difficult to track exactly how much revenue comes from a specific source — but that doesn’t diminish its importance.
Influenced revenue is often an overlooked, but powerful contributor to a nonprofit’s financial health. While direct donations and grants provide immediate funding, influenced revenue offers the potential for long-term growth and stability. When your nonprofit prioritizes continual outreach, community building, and relationship development, you build an audience of supporters who are likely to contribute in the future — even if they don’t do so immediately.
The revenue generated from these indirect efforts helps nonprofits broaden their donor base, cultivate stronger relationships, and expand their reach. It often allows organizations to weather times of uncertainty because influenced revenue can supplement direct donations during lean periods. It reflects the effectiveness of your nonprofit’s overall marketing strategy and its ability to create lasting impressions in the community.
Sometimes nonprofits choose to discontinue certain tactics such as digital ads, events, or outreach initiatives if they don’t see immediate, measurable results. This might seem like a logical decision, but it overlooks the potential of influenced revenue that these tactics could be generating.
For example, you might run a CTV (Connected TV) advertising campaign that might not result in immediate donations or sign-ups, but it could increase brand awareness and inspire future contributions from those who later visit your website or attend an event. If you discontinue the CTV ads because you can’t directly link them to results, you might miss out on the influenced revenue they’re helping to generate.
Eliminating strategies that are part of your nonprofit’s long-term growth plan can backfire, even if the immediate data analyses don’t seem to justify them. Recognizing that influenced revenue often has a delayed effect means understanding that success doesn’t always show up right away — and that some efforts, even without immediate returns, are critical to your nonprofit’s continued success.
When incorporating influenced revenue into your nonprofit’s investment decisions, it’s important to take a holistic view of your marketing and outreach efforts. Instead of focusing solely on the short-term return on investment (ROI), consider the long-term benefits and how various activities work together to build awareness and relationships.
To effectively factor influenced revenue into your strategy, start by tracking the indirect results of your efforts. For example, measure engagement on social media, track event attendance, and monitor the growth of your email list. These metrics may not directly translate into immediate donations, but they can help you understand the impact of your outreach and how it contributes to your overall financial health.
Investing in tools such as CRM (customer relationship management) systems or analytics platforms that help track the longer-term effects of your activities can help paint a clearer picture of how influenced revenue accumulates over time. These tools allow you to measure trends, behaviors, and the connections between initial engagement and eventual financial contributions.
Influenced revenue is an important asset, but like any other tool, it’s important not to rely too heavily on it. As in any investment strategy, diversification helps to mitigate risks. If you depend too much on one source of influenced revenue, such as a particular marketing campaign or partnership, you may expose your nonprofit to volatility if that source dries up or stops producing the same results.
Balancing your nonprofit’s funding sources is key. In addition to influenced revenue, ensure that you have a mix of direct donations, grants, and partnerships that provide more immediate and predictable income. This diversified approach will help stabilize your finances and allow you to continue investing in the growth of your nonprofit, regardless of fluctuations in influenced revenue.