Sunday, March 28, 2010

Bono's Product (RED) as another markets-based micro-mechanism to transfer wealth


Buy a "grande" cup of coffee in America and micro-treat AIDS in Africa

(Red) is another form of sustainable "Micro Profit Sharing"

"Micro Revenue Sharing" is better than Micro Profit Sharing when "profits" are malleable

Similar to the Carbon Manna(SM) System, Bono's Product (Red) campaign is another markets-based micro-mechanism for transferring wealth or income from the Haves in the Developed World to the Have-nots in Africa. Carbon Manna(SM) taps the essentially unlimited European carbon-trading markets (US$ 125 billion/year), and Product (Red) taps the even larger global consumer discretionary spending markets.

Participating companies or (Red) partners agree to donate up to 50 % of their profits from co-branded (Red) products to Product (Red)'s partner in Africa, The Global Fund, which uses the money to support HIV / AIDS programs in Africa. (Red) partners include Apple, American Express, Emporio Armani, The Gap, Hallmark, Comverse, Dell, Nike and Starbucks.

But after alllll this time, why are there so few (Red) partners, one might ask ?

But more importantly, considering that this micro-mechanism is both obvious and not patented, why haven't more celebrities, non-profits and/or companies started their own (Red) knock-off campaigns to fund charitable work around the world ?

Is Bono the only charismatic celebrity in the world ? What about Madonna? What about Brangelina ? What about Miley Cyrus ? Why don't they start similar campaigns -- and just call them a different color or a different name ?

The lack of emulation, cloning, imitation or just plain theft of this admirable and sustainable pro bono business model is remarkable. Why don't more entities copy the (Red) model and tap the unlimited pool of funding represented by consumer discretionary spending ?

If you know the answer, please enlighten me.

But if clones or pseudo-clones should arise, rather than contribute "profits" from co-branded products, participating companies should be required to contribute a percentage of top-line revenue or net revenue. "Profits" can be like statistics -- toooooo easily manipulated -- and many smaller for-profit companies that claim to contribute some or all of their "profits" to a charitable cause are grossly misrepresenting the magnitude of their magnanimity.

Regardless, when will Product (Red) be flattered by equally flamboyant imitators ? Or is it permanently unique like its creator, sadly ?

Globally & warmly yours,

David A. Palella
San Diego, California

cell: 619-787-5767
email (backup):

I will be/was a speaker or keynote speaker at:

2nd Kenya Diaspora Int'l Conference & Investment Forum

20-22 August 2009, Atlanta, GA


"Microfinance for Institutional Investors"

21-22 Sept. 2009, Washington, DC


"Micro Financial Services World"

[ organized by Hanson Wade ]

11-12 May 2010, Amsterdam City Centre, The Netherlands


Green Business Africa Summit & Expo

02-04 June 2010, Nairobi, Kenya