Here's one way NIL collectives could fight donor fatigue

Good morning, and thanks for your continued support of Extra Points.

On Tuesday AM, a story published by On3 reporter Eric Prisbell echoed something I’ve been hearing from collective operators, other reporters, and administrators…NIL collective donor fatigue is a thing, and operators are trying to find ways to bring in new revenue.

Via the story:

Not every NIL collective is the same, of course, but over the last year, industry sources at multiple big programs have regularly told me that the overwhelming majority of collective funds come from donations, not brands. A collective might tell the IRS or state AG office or their website that the organization is setting up marketing deals between athletes and brands, and many of them still do that….but the bulk of the money is coming because a fan writes a check that he hopes will improve team recruiting.

But ask any professional development officer at a university, hospital or major non-profit….fundraising is hard. Donors and cashflow can be highly unpredictable, and cultivating new donors is expensive. If it’s expensive and difficult for a university, full of seasoned fundraising professionals, it’s going to be even harder for a NIL collective that isn’t as well-staffed or experienced.

Prisbell’s story details the efforts that many collectives are trying to shift to a subscriber-based model, which could give operators predictable, monthly reoccurring revenue streams. It’s not a bad idea! After all, I also run a subscription-based business.

But if folks want to pull that off, I have a suggestion…one that requires completely reevaluating the “value” that a NIL collective provides to the subscriber…

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