February 02 2011
Embedded generosity, where a company’s product incorporates a charitable donation, is proving a popular business model: UK charity search engine Everyclick has raised over £1.5m, while sales through “eBay for Charity” have generated over $200m worldwide. So when the British Heart Foundation prepared to release a fundraising CD of love songs by the likes of Al Green and Aretha Franklin to celebrate its 50th anniversary, launching it exclusively with “donate as you download” website Fairsharemusic was a natural choice.
Founded by music-industry veterans Lee Cannon and Jonny Woolf, Fairsharemusic donates 50 per cent of profits from every download to one of its 11 UK partner charities, and – following its launch eight months ago – is on track to meet its 2011 target of gaining 0.2 per cent of the UK’s download market.
“This should allow us to generate donations of about £25,000 in our first year,” says Cannon, “but as the market is increasing at around 40 per cent a year, we have plenty of room for growth.”