Image by Mario Caruso

Understanding our donation model & transition plan 

I have explained to many of you my business model and the factors involved in transitioning to this model.  But...

A picture is worth 1,000 words... 

Here is an easier way to explain this transition. 

When I decided to implement this new business model there were two main "financial" factors to deal with.  

1) We implemented a new lower fee schedule (depending on situation)

2) We decided to donate 20% of our revenue to non profits

As you can imagine, if I decided to immediately implement this with all clients, it would mean a substantial drop in revenue.  

For Example:

100 clients & 

$100,000 Revenue

Results in:

Same 100 clients & 

20+% Less Revenue

While the goal of this business model is to create change and impact, we still need to pay the bills.  

Instead, we have implemented an incremental & phased approach.  

Incremental meaning:

For each dollar of new revenue we receive, we directly offset that by either:

1) Lowering a current client's fees or

2) Implementing the 20% donation model.  

For Example, 1 new client:

101 clients & 

$101,000 Revenue

We then:

Instead of taking a $1,000 raise, we lower a current clients fees by $1,000 

Resulting in:

101 clients & 

Same $100,000 Revenue

Phased meaning:

Phase 1 focused on lowering current client fees.

Phase 2 focuses on adding the donation model onto current clients. 

We are completely through Phase 1! 

Currently we are working our way through Phase 2

For Example, 1 new client:

101 clients & 

$101,000 Revenue

We then:

Instead of taking a $1,000 raise, we start donating $1,000 of the revenue from current clients

Resulting in:

101 clients & 

Same $100,000 Revenue

For you spreadsheet lovers...

Yay, we gained a client! 

Results in the same net revenue, but increased donations. 

Finally, when I say we are 50% (or whatever %) through this phase, it means we have transitioned X% of current clients to the donation model.  

What this all means for you:

None of this means additional costs to you.  In fact it frequently means lower costs to you. 

All donations are coming from our revenue.

Gross revenue - donations = net revenue

We are simply phasing in this model as we grow to keep the net revenue the same. (until we hit 100% of current clients onto the donation model) 

If your quarterly newsletter says "Your donation for the quarter was $0", it does not mean you are being asked to donate. It simply means we don't have enough new revenue to add you to the donation model yet.  

If you want to help get there faster:

  • Share our business model with your friends or social media!

  • Share a referral! 

Here are a few articles that you may want to share with others... 

We're a different kind of financial firm than you may be used to. ​

We charge less than the industry*

We offer Sustainable Investments

We donate 20%* of our revenue

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© Greater Good Financial 2021

Advisory services offered through Resources Investment Advisors, LLC. ("RIA"), an SEC-registered investment adviser.