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Monday, October 11, 2004

Sell or Donate? 

An excerpt from an Economist article quoting someone who managed to distribute 348m condoms and 29m oral contraceptives in Africa, Asia and Latin America last year. Phil Harvey, who owns one of the largest adult entertainment groups and also a non-profit that specializes in distributing condoms and contraceptives in poor regions, says that

rather than donating contraceptives it is better to market and sell them—even if only for pennies. This brings lots of shopkeepers and others into the distribution network, and it also means customers are more likely to value—and therefore use properly—something they have paid for.

The same logic applies to many products distributed freely by non-profits, especially in regions of the world where the non-profit organization's network is not developed.