A cash mob is an event typically organized by a resident of a local area which encourages a group of people to get together and spend a specific amount of money at a local business. Cash mobs help support local businesses and also give the local economy a boost. If organized properly, they are also a great way to help local residents meet one another and make plans to band together in the future to help support the area in which they reside.
Cash Mob Guidelines
When creating a cash mob, there are a few important guidelines to keep in mind during the organization and implementation in order to make the mob run as smoothly as possible. First, it is important to organize well in advance of the date of the event. Start by finding a local business with plenty of parking and affordable products available. Set a potential date and run the date by the business owner for approval well before the announcement of the mob. Ensure that the date and time is a time many residents have open – an evening or weekend date is optimal. Next, publicize the event via social networking sites, email and word of mouth. Set an amount to spend – 20 dollars is the typical amount, although the biggest concern is certainly to make the amount something that is affordable for local residents. Additionally, plan a meeting spot for after the event. Socialization is an important part of cash mobs. Mobbers seek out the opportunity to meet other residents and plan future ways to help support local businesses and the local economy.
How Mobs Benefit the Local Economy
Economists have spent a great deal of time analyzing cash mobs and the benefits that they provide for local businesses, as well as the greater benefit for local economies. Cash mobs begin by helping to support a particular business. The influx of cash that comes about from hosting a mob event is immediately re-invested in that particular business. The money is used to help pay workers, upgrade technology, invest in additional goods for sale and even to create advertising or make changes to help attract additional customers. If used properly, this cash is used to make the business sustainable for the long-term, saving a local business from potential failure. While the money is immediately utilized to benefit the business, a great deal of the proceeds are immediately re-invested in the local economy. While a big chain invests only about six percent of profits into the local economy, local businesses on average put about 13 percent of profits back into the local economy. These mob events are a great way to give local businesses the support needed to continue to sustain this increased investment in the local economy. The money invested helps to fund local government and projects.
Cash mobs are a way to help support local businesses and the local economy. The mobs infuse a great deal of cash into the business. The cash is immediately re-invested into the business, but in the long-term a good deal of the money helps to boost the local economy, making cash mobs a great thing for any resident of the area.
This helpful advice was sponsored by CashMob.com, a leading site on the web that allows users to find cash mobs near them while also learning about the trend. Through their outreach, CashMob.com strives to strengthen communities and help local businesses achieve financial success.