Find out why some campaign managers might choose to use percent pricing over free pricing.
Free pricing is our most popular and recommended pricing option. When you select free pricing, there’s no platform fee that you or your donors pay. There is no minimum amount that needs to be tipped by donors for there to be no platform fee on your campaign. Even if no one leaves a tip, there are still no platform fees applied. Free pricing offers all the same campaign features as the percent pricing.
So, you may be wondering: why would anyone choose percent pricing?
This is a question we encounter often, and there are actually a few good answers. Percent pricing tends to work better for organizations in the following scenarios.
When running a raffle with limited entries
With raffle fundraisers, the free option provides donors with a small number of bonus entries in exchange for leaving a tip. These bonus entries count towards the overall number of entries sold on your raffle.
If for whatever reason, your raffle only has a limited number of entries available, you may only want paid entries to count towards your total allowed. In this case, incentivizing tips with bonus entries might not benefit your fundraising efforts.
Percent pricing doesn’t have tips or bonus entries, so only paid entries will count towards your overall entries sold.
If you don’t want to ask your donors to tip
Your donors will be asked if they want to leave an optional tip during check out with free pricing. Here’s what it looks like in raffles and sweepstakes:
It’s easy for donors to opt-out of tipping. However, some organizers prefer avoiding the request for tips, in which case percent pricing is an ideal alternative.
Choosing percent pricing will ensure that your donors don’t see a tip card in checkout.
A corporate Sponsor is covering campaign costs
In some cases, campaign organizers partner with a corporate sponsor who agrees to cover the campaign’s processing costs. Typically, sponsors take on processing fees, so 100% of the fundraiser’s donations can go directly to the recipient organization.
Free pricing doesn’t have any MemberHub fees in the first place, so this option can make it difficult for a corporate sponsor to cover costs.
Percent pricing is 7.5% of each donation. This option makes it easier for a corporate sponsor to get involved and estimate the amount of their sponsorship.