Friday, May 23, 2008

Abundance Model, versus the proprietary one

We are trying to build and launch donor.com with the abundance model. But what is it, and how does it apply?

For us, it's simple. Let's provide non-profits with the best fund raising software and services anywhere, and let's do that at the lowest cost possible so they save their money for their mission.

How is that different from a proprietary model? One could still meet the goal above by hiding the source code, get some MBA's in to look at cash centers and make exclusive agreements to make the software widely available and the best for non-profits everywhere and still make a lot of money that you can then put into the marketing and other 'good works' that one would deem worthy.

Yes that could work. But it includes exclusive deals, controlling source code, building a traditional software and service organization that seeks to make the profit first, and then relies on 'good intentions' to push it out farther. That is good capitalism, but is it really the best model?

What happens if we choose to be inclusive, not exclusive. What happens if we use a foundation as an owner so all the profits go into something that has as it's purpose to push prices down while it improves the product.

Christ didn't make strategic deals, start a denomination, and make an exclusive club that only the approved could belong to. In short, Christ didn't make anything subject to rules, proprietary information or otherwise. For salvation to work, all that is required is trust, expressed as faith in Christ.

We provide a product and service, which we need to charge for in order to make a profit. I think that is good business. But when the profits are used to control our future, secure our position, evaluate who we include and exclude we are in danger of serving ourselves: not our clients.

So is the abundance model workable in business? I think Google says yes. Are we idealistic and headed for trouble? I'd love to hear an argument that says we are. I can't imagine what argument can show how we are entitled to large profits off the donations of non profits. I think anyone in non profit work should be putting the non profits first.

The proprietary model is all about incremental change. Abundance is all about transformation. For transformation to occur, something has to die. For donor.com, the thing that has to die is our control of the profit.

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