Trouble in fundraising paradise

From WSJ:

[M]any of Mr. Obama's 2008 donors are reluctant to give again. The Obama campaign itself reported that fewer than 7% of 2008 donors renewed their support in the first quarter of his re-election campaign. That's about one-quarter to one-third of a typical renewal rate: In the first quarter of the Bush re-election campaign, for example, about 20% of the donors renewed their support.

There are other troubling signs. Team Obama's email appeals don't ask for $10, $15, $25 or $50 donations as they did in 2008, but generally for $3. Nor are the appeals mostly about issues; many are lotteries. Give three bucks and your name will be put in a drawing for a private dinner with the president and first lady.

This is clever marketing, but it suggests the campaign has found that only a low price point with a big benefit can overcome donor resistance among people who contributed via mail or the Internet in 2008. It also points to higher-than-expected solicitation costs and lower-than-expected fund-raising returns.