Dr. Sash Neser
Raffles are a powerhouse in the fundraising world. Whether you are running the traditional paper-based version or harnessing the power of digital shared raffles, they continue to be a staple for fundraisers the world over.
But, successful raffles are tough to organise with lots of people, and logistics involved. It can be overwhelming despite the best intentions of the organiser, not to mention there are plenty of pitfalls to avoid.
As a self-confessed raffle nerd (yes, sad I know), I have wondered why raffles are so popular. I guess in short, it’s because people love to buy raffle tickets.
But why is that?
What makes people put their hand in their pockets to support a raffle? An obvious answer might be the person buying the raffle ticket has the chance to win something of value for a small investment.
Here, the humble raffle can be seen as a type of gambling which opens the possibility with enthusiastic gamblers seeing raffles as a legitimate investment.
With regulators, there is certainly no difference. For example, in NSW, the Department of Fair Trading includes fundraising raffles in the Community Gaming Regulations and considers raffles to be lotteries.
However, for most fundraising raffles, the prizes are smaller donated items. Which begs the question, why do people still buy tickets for a framed Wallabies jersey that you have nowhere to put, or a hair straightener that will never be used?
We know people will spend more when the prizes are attractive, but it’s not the only reason supporters will reach into their pockets to buy raffle tickets.
So, why do people really buy raffle tickets?
Research provides some interesting findings and insights with supporters’ motivations when buying raffle tickets. A big part of the motivation is in our subconscious, and is linked to the feelings that arise when buying raffle tickets.
The Warm Glow
There is a term for the feeling we get when we have done something that we feel is good or benevolent for ourselves or our society and it’s called the ‘warm glow’. Most times, the purchase of raffle tickets, even when we don’t like the prizes, produces the warm glow. We buy the ticket and our body rewards us with a release of oxytocin and possibly some dopamine because we supported a worthy cause. The chance to win a prize is really just the kicker.
Interestingly, there are two types of warm glow.
1. The first comes when we satisfy our internal need to do something we have perceived as good, therefore showing that we are a good person.
2. The second type comes from being seen by others as doing something good. We feel secure knowing that others have witnessed us doing the right thing and that they approve.
Regardless of which type of warm glow you receive, buying a raffle ticket is a way to feel you are doing something worthwhile. So, when you consider we don’t really buy a raffle ticket to win, rather we do it to support a worthwhile cause, the cost of the raffle ticket looks more like a donation.
Our article raffle ticket pricing shows just how connected buyers are to the warm glow. Researchers tested several raffle ticket pricing methods. One was called the ‘pay what you want’ option. Instead of stipulating the price of a raffle ticket, people were invited to pay any amount above the minimum price, most people contributed more. Solid evidence that many people see purchasing a raffle ticket as an opportunity to support a worthy cause and, by default, achieving the warm glow.
The convenience purchase
The convenience purchase comes into play when people are asked to sell raffle tickets. These situations typically involve a young student bringing raffle books home for mum and dad to sell. Or the club member that has a raffle book thrust in their hand with the expectation they get the tickets sold.
Often, mum, dad or the club member are time poor or don’t fancy trying to peddle tickets to their own friends or family. There is a now a very different motivation for purchasing a raffle ticket that has little to do with the warm glow and is much more about convenience.
When your child comes home with a book of raffle tickets, you really have two choices.
Option A – Do the work to sell tickets.
Option B – Make the convenience purchase. Buy all tickets yourself and be done with it.
Option B is very efficient for the time-poor but could be expensive depending on how fat the book of tickets you are required to purchase. In many cases, convenience beats cost and so raffle organisers can take advantage of the convenience buyer by adding some upside to this type of purchase.
We saw this scenario with the representative sports team that recently joined Bolsta Raffles. The junior rugby players’ parents were asked to sell $400 worth of raffle tickets.
Behind closed doors, hundreds of parent did the calculations on time, cost and convenience to determine what the raffle was going to cost them. Do we do the work or just buy the tickets?
The raffle organiser made it known that for each player that sold the full amount of tickets, the parent would not have to pay for the players’ registration costs.
A classic convenience purchase scenario.
For the Option B convenience purchasers, this provided great incentive to buy the tickets. They could pay for full registration fees or fork out a little extra for the book of raffle tickets with the kicker that the raffle tickets gave them a chance to win a prize. Win-Win.
And there you have it….the real reasons people buy raffle tickets. For some it’s the warm glow for others it’s convenience. Either way, the mighty raffle was, is, and will continue to be an amazing way to raise funds for your cause. If only they weren’t so hard to organise!
Well, they don’t have to be difficult to organise and it doesn’t have to be a chore to find attractive prizes. I mentioned earlier that I am a raffle nerd. I didn’t mention that I am part of a team of raffle nerds and together we have developed a very cool raffle platform. If you love raffles but hate organising them and would like to harness the power of digital technology without losing the personal touch, then we invite you consider Bolsta Raffles. The raffle platform developed by raffle nerds for the everyday fundraiser.
