Blake Mycoskie first visited Argentina while competing on NBC’s The Amazing Race in 2002. He went back in 2006 on vacation and while there, noticed a lack of shoes in many communities. This lack of footwear was causing a host of issues for the people living in these communities.
It dramatically heightened my awareness,” Mycoskie explained to Business Insider in 2011. “I knew somewhere in the back of my mind that poor children around the world often went barefoot, but now, for the first time, I saw the real effects of being shoeless: the blisters, the sores, the infections.
Mycoskie’s idea for a solution was to start a shoe company that donates a pair of shoes for every pair bought. Thus, the Buy One, Give One business model was born. Shoes For Better Tomorrows, later shortened to TOMS, modeled their shoe design after the alpargata that the Argentinian locals wore. Just three years after establishing the company, Mycoskie was given The Secretary of State’s Award of Corporate Excellence.
Warby Parker, an eyewear company based out of New York City, has been designing, manufacturing, and distributing their eyewear since 2010. They began their operation with a business model similar to TOMS: For every pair of glasses bought, they would donate a pair to an individual in need. Warby Parker has made being charitable appealing by offering their customers in-home try-ons with free shipping both ways.
Other companies using this buy-one give-one business model are Soapbox Soaps, Two Degrees Foods, Blanket America, Roma Boots, and many more.
Recently this model has come under scrutiny and adjustments have been made. For example, critics of TOMS argued that the model created a decreased demand for locally sourced products in the countries where donations were common. To remedy this, in 2013 TOMS established local production facilities in Argentina, Ethiopia, Haiti, India and Kenya. Similarly, now when Warby Parker sells a pair of glasses, an amount is donated to a nonprofit that will train men and women to administer eye exams and sell glasses to their communities for affordable prices.
While these models aren’t as direct as the original “one for one,” they’re addressing the roots of poverty, instead of just treating the symptoms. Warby Parker sums up the issue on the “Buy a Pair, Give a Pair” section of their site: “It’s a sticky fact of life that kind-hearted gestures can have unintended consequences. Donating is often a temporary solution, not a lasting one. It can contribute to a culture of dependency. It is rarely sustainable.”
The Buy One, Give One business model is a young model. It’s understandable that it’s not perfect, but the right intentions are there. The continued evolution should serve as inspiration for the next generation of entrepreneurs. According to an infographic from The University of Maryland’s Online School of Business, what future entrepreneurs can learn from Blake Mycoskie is to “keep pursuing fresh ideas“ and then “share your vision.” Coming up with innovative approaches to charitable yet profitable business models then sharing these ideas with the world will help contribute to the well-being of our global society.
Sure, I’ve been known to wear rose-colored glasses, but there’s no denying there’s a market for these ventures: Four years since establishing their business, Warby Parker hit the one million mark for the number of glasses distributed to people in need. TOMS has distributed 35 million pairs of shoes, and expanded their enterprise to include coffee, luggage, and eyeglasses. These products also provide necessary services to communities in need. If you’re an entrepreneur looking for a way to set yourself apart from your competition, adding a charitable element to your business model could be an effective way to do so.
Have an opinion on the Buy One, Give One business model? Please comment below.
Feature Image: Vivianna_love
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This guest post was written by Reed Parker. Reed writes about nothing in particular. He just wants to feel better about getting an English degree.
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