Ben Carson trails Donald Trump by just a handful of points according to the latest Real Clear Politics average of national polls of Republican primary voters, and he leads all candidates in a very important category: fundraising.
The New York Times published the third quarter fundraising earnings, showing that the former neurosurgeon had taken in $20.8 million, the most of any Republican and third highest of any candidate.
However, Federal Election Commission reports also show that Carson spent $14.2 million during that same period, first among the Republican candidates. Like Democratic candidate Bernie Sanders, most of Carson’s support comes from small donations, so it’s uncertain Carson will be able to raise the funds needed for the rest of his campaign to compete with the “wealthy and well-connected boosters of some of his rivals.”
The Wall Street Journal provides a breakdown of how most of Carson’s fundraising money is being spent:
In all, Mr. Carson directed $11 million of the $14 million he spent in the third quarter to fundraising costs.
The campaign spent nearly $5 million — a quarter of its total haul — on social media, email marketing and online advertisements. Mr. Carson’s Facebook presence in particular has drawn attention for the size of his audience. Last month, he surpassed GOP front-runner Donald Trump to become the candidate with the most fans on Facebook.
He spent $2.6 million on direct mail, $1.4 million on telemarketing and another $57,000 on the campaign website.
Ben Carson may also suffer from what Politico calls an “appetite for the good life.” According to the report, Carson has spent thousands of dollars on the campaign trail enjoying upscale dining and staying at high-end hotels.
“His direct mail campaign cost the candidate $8.4 million, or nearly 60 percent of the total $14.2 million it spent in the third quarter.”
Mother Jones
But the majority of Carson’s “burn rate” can be attributed to his fundraising methods. Carson appeals directly to his supporters through email, snail mail, and Facebook campaigns. His direct mail campaign cost the candidate $8.4 million, or nearly 60 percent of the total $14.2 million it spent in the third quarter.
This strategy ultimately is much more expensive than the $10,000-per-plate galas that helped Jeb Bush raise $13.4 million from July to September.
Despite raising more money than his competitors, Ben Carson’s campaign expenditure may be unsustainable. Spending nearly 60 cents for every dollar raised on fundraising means that any dip in the small donor funding on which Carson relies may jeopardize the financial well-being of his campaign.
Ben Carson’s fundraising strategy seems to be predominately concentrated on raising additional fundraising. This is a slippery slope as it depends very heavily on many small party donors, many of whom may have already given their last contribution. With the next Republican debate around the corner, one faulty step could bring Carson down in the polls, which could rapidly decrease his donor interest.
If Carson’s support stumbles, the high-margin campaigners may be able to run away with the polls. As a result, Carson may have to pursue alternative fundraising campaign strategies or withdraw his candidacy.
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