The Amazing Money Machine-How Silicon Valley made Barack Obama this year’s hottest start-up

How Silicon Valley made Barack Obama this year’s hottest start-up

by Joshua Green
The Amazing Money Machine


History has a way of prizing timeless qualities like vision and oratory above temporal things like money. So if Barack Obama becomes our nation’s first black president, civics textbooks will probably never note his fund-raising prowess or the financial challenges he had to overcome simply to compete with the likes of Hillary Clinton. But Obama would not be where he is today if he did not possess a preternatural ability to elicit huge sums. Obama prompts an impulse in people to reach for historical antecedents when describing him—as a speaker, Martin Luther King Jr.; as an inspiration to young voters, Robert F. Kennedy. No one I’m aware of has suggested an apt comparison for Obama, the mighty fund-raiser. But whenever I think about the quarter billion dollars he has raised so far, the image that leaps to mind is Scrooge McDuck diving joyously into his piles of gold.

The story of Obama’s success is very much a story about money. It provided his initial credibility. It paid for his impressive campaign operation. It allowed him first to compete with, and then to overwhelm, the most powerful Democratic family in a generation—one that understood the power of money in politics and commanded a network of wealthy donors that has financed the Democratic Party for years.

What’s intriguing to Democrats and worrisome to Republicans is how someone lacking these deep connections to traditional sources of wealth could raise so much money so quickly. How did he do it? The answer is that he built a fund-raising machine quite unlike anything seen before in national politics. Obama’s machine attracts large and small donors alike, those who want to give money and those who want to raise it, veteran activists and first-time contributors, and—especially—anyone who is wired to anything: computer, cell phone, PDA.

Here’s another thing: he is doing it almost effortlessly. That is to say, in an era when the imperative for campaign dollars demands more and more of a politician’s time and lurks behind so many recent scandals (including the auctioning-off of the Lincoln Bedroom), Obama has raised more money than anybody else without plumbing ethical gray areas or even spending much of his own time soliciting donations. During the month of February, for example, his campaign raised a record-setting $55 million—$45 million of it over the Internet—without the candidate himself hosting a single fund-raiser. The money just came rolling in.

Obama’s campaign is admired by insiders of both parties for its functional beauty—not just admired but gawked at, like some futuristic concept car leaking rocket vapor at an auto show. Obama’s campaign has made a similar leap in how it has applied technology to the practices of raising money and organizing, and it is already the clear model for everyone else.

more...

http://www.theatlantic.com/doc/200806/obama-finance

from becoming the Dem Prez nominee. And to-date I've only donated $10 to his campaign because I agreed with something he said in PA prior to the PA primary. I've since closed my wallet to him because I was pissed at him for going on Faux News and regurgitating right wing talking points about Democrats and liberals. My wallet is still closed, but I did write and send him a 5 page letter expressing my anger and displeasure at him going on Faux News.

That's the person who deserves the credit.

The exploitation of technology:

"To get a better sense of why it has succeeded, I opted to undergo the full tech immersion while reporting this piece, and soon had Obama ring tones on my phone, new networks of online “friends,” text-message updates from the campaign, and regular e-mails from its manager, all gently encouraging me to give money, volunteer time, bring in new friends, and generally reorient my life in ways that were made to seem hip and fun—and inexorably aimed at the greater glory of Barack Obama. How Obama arrived at this new model for campaigning is a tale of foresight and circumstance, his campaign’s enterprise and his opponent’s shortsightedness, and it has as much to do with Silicon Valley as it does with Washington politics."

Somebody's on top of things.

nothing about how campaigns are run, but this one sure looks successful to me.