"You make a living by what you get, but you make a life by what you give."
This profound quote encapsulates the essence of strategic generosity. In the world of traditional business, value is often measured by what one can acquire—profits, market share, and customer loyalty. However, the unconventional entrepreneur understands that true success is multifaceted and deeply personal. Each individual’s path to building a life they love can be distinct yet equally valid.
Rethinking Value: The Unconventional Entrepreneur's Perspective
In the conventional business paradigm, value is seen as Sales – Revenue – Profit. However, the new age entrepreneur approaches success from a different angle. They recognize that true success and fulfillment come from taking the road traditionally less traveled, which in this case means embracing generosity.
The Philosophy of Generosity
Our society is often obsessed with accumulation—be it wealth, possessions, or achievements. This relentless pursuit of more can sometimes lead to an imbalance, where the focus on taking overshadows the value of giving. Strategic generosity shifts this focus towards giving, but not in a reckless or self-sacrificial manner. True generosity requires abundance. To give effectively, one must have enough to share without compromising their own success.
Generosity is not contrary to growth or achievement. On the contrary, it thrives on these aspects. The more successful you become, the more you can give. But this giving is not aimless. It is purposeful and strategic.
Defining Generosity: More than Just Giving
Generosity can take many forms—time, money, skills, and more. However, in the context of strategic generosity, the aim is not merely to give for the sake of giving. Instead, the goal is to ensure that your generosity serves a purpose, achieving specific objectives that align with your values and goals.
Case Study 1: Gary Vaynerchuk's Personalized Generosity
Background
Gary Vaynerchuk’s journey is a modern rags-to-riches tale. Initially, a significant player in the wine industry, Gary has recently become known for his incredible reach across social media.
Importance of Listening
Gary emphasizes the importance of listening to his audience. He dedicates time each day to read what his friends and followers are saying on their social networks. By understanding what interests them, what is important to them, and what troubles they face, Gary uses this information to gain social capital.
Example of Personalized Generosity
When fulfilling an order from his wine library or another business, Gary often searches for the person who placed the order. If he discovers that the customer is a huge Jets fan, he might include a Jets keychain with the order, along with a short handwritten note.
Impact
This seemingly small gesture has a significant impact on the customer. It shows that Gary’s business cares more about who the customers are than just their credit card numbers. Such personalized acts rarely go viral but create a profound impact on the individual and their close network. This act of personalized generosity helps Gary build a loyal customer base that appreciates his genuine care and attention.
Case Study 2: Salesforce's 1-1-1 Model
Another powerful example of strategic generosity is Salesforce’s 1-1-1 model, where the company donates 1% of its equity, product, and employee time to charitable causes. This initiative has significantly enhanced their brand reputation and community impact.
Salesforce’s 1-1-1 model achieves several goals:
- Community Engagement: By involving employees in volunteer activities and providing products to nonprofits, Salesforce fosters a strong sense of community and purpose within its workforce.
- Brand Enhancement: The initiative generates positive publicity and strengthens Salesforce’s reputation as a company committed to social responsibility, attracting customers and partners who share similar values.
Case Study 3: Khalid Farhan's Strategic Generosity
Background
Khalid Farhan, a digital marketing specialist and the creator of Passive Journal, leverages his expertise to support aspiring entrepreneurs and freelancers, particularly in Bangladesh. He is known for his commitment to helping others succeed in the digital marketing space.
Acts of Generosity
Khalid engages in acts of generosity by:
- Sending Motivational Souvenirs: He sends motivational souvenirs to participants of his courses, providing them with tangible reminders of their goals and achievements.
- Distributing YouTube Earnings: Khalid generously distributes his YouTube earnings among his course participants, offering financial support and encouragement.
Impact on Community
This approach fosters a sense of community and motivation among his followers. By providing both emotional and financial support, Khalid enhances the educational and professional journeys of aspiring entrepreneurs and freelancers.
Building Loyalty and Brand Strength
Farhan’s strategic giving:
- Builds Loyalty: His generosity helps to build a loyal base of followers who feel valued and supported.
- Strengthens His Brand: As a mentor and leader in the digital marketing space, his actions reinforce his brand image, making him a respected and trusted figure in his community.
Capturing Value in Your Business Model
Integrating strategic generosity into your business model can capture value in several ways:
- Enhanced Customer Loyalty: Acts of generosity create a deeper emotional connection with customers, fostering loyalty and repeat business. When customers feel valued and appreciated, they are more likely to return and recommend your business to others.
- Positive Brand Image: Generosity can significantly enhance your brand’s reputation. Positive publicity from acts of generosity can attract new customers and improve public perception of your company. A strong, positive brand image can be a powerful differentiator in competitive markets.
- Increased Employee Engagement: Generosity programs that involve employees, such as volunteer opportunities or matching gift programs, can boost morale and job satisfaction. Engaged employees are more productive and committed to the company’s success, leading to better overall performance.
- Social Capital and Community Impact: Strategic generosity can strengthen your ties to the community and build social capital. By supporting local initiatives and addressing community needs, your business can become a respected and integral part of the community, leading to increased support and goodwill.
- Long-Term Value Creation: While the immediate financial return on acts of generosity may not be apparent, the long-term benefits can be substantial. Building a reputation for generosity and social responsibility can create lasting value for your business, attracting customers, partners, and investors who share your values.
How to Apply Strategic Generosity
- Find Your Purpose:
- Why do you want to give?
- How can you make it personal?
- List Possible Gifts:
- Focus less on the monetary value and more on the connection.
- What can you give that says, “We solve a problem, we know who you are, and we care”?
- Schedule Your Gifts:
- Be strategic: pick customers who will appreciate it and do it periodically.
- Aim to perform one generous act for 1 different customer each month.
- This way, each year you plant 12 seeds that have the potential to gain you more customers, respect, social capital, and ultimately, a better bottom line.
Final Notes: Listening to Your Customers
Looking for ways to listen to your customers doesn’t mean you have to change anything at first. Just pay attention. What are your customers talking about while they wait? What are they tweeting about? What are they listening to? Don’t rush!
Once you have accomplished your first gifts, you will feel awesome. But don’t hang up signs announcing how generous you are. Let your customers be the ones to make it a big deal. Your job is to plant seeds and then let them grow as they will.
