Barr 2008 -- Scam, not Campaign


General news

By phillies
Posted on Sat Jul 11, 2009 at 10:07 AM EST

I've spent the last year detailing how Barr 2008 spent its money.  This article is the summary.

I'll keep the summary very short.

The Barr 2008 campaign was in its operation a scam for transferring money from Libertarian donors to Barr's Republican cronies and a few libertarian hangers-on.

The Barr 2008 Campaign raised nearly one and a half million dollars.

It spent barely 4% of its income on anything that resembles classical public outreach. That includes $12,618.88 to book publisher.

It spent under 1% of its income on actual press advertising, counting google.com.

That's a tenth what it spent on rent of real estate and office furniture.

That's a tenth what it spent (or still owes) on a web page.

That's considerably less than it spent on limousines and town cars.

That's what the campaign our party's establishment gave us.

Full numbers below fold

Barr -- Campaign or Not

Bob Barr may have promised a Presidential campaign, but the delivery was a bit different.  Here is the record of his spending, based on our reanalysis of the Barr 2008 FEC campaign reports.  Some minor expenditures have been left out.  

The campaign spent $1.4 million, more or less every penny that it raised.  The issue is where Barr 2008 spent its money, including $160,000 that the campaign owed at the end of the year, not to mention money owed American Express.  

In short: One per cent of campaign spending went for advertising the candidate to the general public via Newsmax, Google, and newspaper ads.. Three more percent went to activities such as a campaign book that could have helped spread the word. Around $100,000 went to the web site. A hundred grand went for renting real estate, with over thirty grand additional to rent and buy furniture and office equipment. Direct mail demanded a seventh of funds raised...about $200K. A third of a million dollars -- a quarter of funds raised -- went to pay people, not counting the hundred grand paid to consultants and the like. . Direct mail demanded a seventh of funds raised...about $200K.

Some people eccentrically think that campaigns are about advertising, so here is everything that might be called general advertising and so reported.  Add it up: one percent of the campaign's money went for broad-market advertising, and another three percent was for advertising of some sort:

Advertising
       Signs by Tomorrow Signs $17,337.9      
       Bumpersticker.com (bumper stickers, promotional items)  $9983.75
      NewsMax Advertising $6250
      Commercial Signs $2993.92
      Dr Don's Buttons (buttons and items) $1261.67
      Zazzle.com T-Shirts $1194.55
      Charleston Gazette $1000.92
      Google, Inc. (Advertising) $796.99
      B&P Promotions    Advertising $657
      Equipity.com (Book Publishing) $12,618.88

That's being very generous to count it as 4%, because I am including over 12 grand to a book publisher for the Barr boom, 10 grand for bumper stickers (which are widely understood to be primarily effective at inciting the faithful), and an amount for lawn signs that were in fair part sold to supporters.  Honest-to-goodness orthodox advertising including Google adwords and Newsmax (a far far right internet news outlet) were 1% of the campaign budget.

Just for purposes of comparison, even the Boston Tea Party presidential campaign spent $327.83 to advertise on Google. As you might guess, this constituted a much larger percentage of their campaign budget.

A third of a million dollars -- a quarter of funds raised -- went to pay people.  That does not include various debts to people, starting with $47,000 owed to James Bovard for making, it is widely rumored, significant contributions to the invisible Barr books.  Here are the people

People
      Liberty Strategies Contract Services $62,500 (Bob Barr's firm)
      Doug Bandow $52,644.11
      Shane Cory $42,000
      James Bovard (Authoring Fee) $30,000
      Robert Stuber Fundraising consultant $24,000
      Steve Sinton Field Consulting $20,000
      Andrew MacPherson $16,074.28
      Russ Verney Political Consulting $14,387.56
      Mike Ferguson Field Consulting $13,812.03
      Stephen Gordon Field Consulting $12,857.97
      Ashley Petty (field consulting) $11,474.5
      Angelia O'Dell (ballot access) $9244.5
      Jake Witmer Ballot Access $3846.96
      Robert Zinzell Political Consulting $3750
      David Beiler (Field Consulting) $2399.11
      John Seewoester Field Consulting $2125.5
      Barry Fiegel (field consulting) $1875
      Karen Neal Ballot Access $1828
      Jason Pye (Field Consulting) $1664.22
      Rob Armstrong Field Consulting $1536
      Joseph Carter Field Consulting $1436
      Robert Jackson In-kind:Travel Expenses $1190.46
      William Greene Creative Fees $1000
      Nena Bartlett Field Consulting $678
      Jeff Becker Ballot Access $514.75
      Hudson Phillips Graphic Design $450
      Stephen Thomas Field Consulting $393
      Dianna Dickerson (Field Consulting) $358
      Bob Bastress (ballot access) $350
      Billy Bryant (Field Consulting) $343.5
      Robert Benedict Political Consulting 312.84
      Stephanie Stevens Field Consulting 298.5
      Cheryl Wesley (Field Consulting) $240
      Todd Wentz Field Consulting $215
There were also people hired via consulting houses, another $109,000 or so of them:

Consulting firms
     Advocacy Ink...$46841.01(media consulting and public relations)
     Promotions Direct advertising and promotional items
$13093.1
     Olympic Consulting Ballot Access and political
consulting $13,000
     National Ballot Access Ballot Access $12818
     Professional Data Services Compliance Consulting  $8803.34
     PrimeOne Political Consulting $7999.98
     Pulse Opinion Research LLC Polling $4750
     Blue Aster Media (Field Consulting) $991.46
     Imaging Arts Charleston (photography) $673.81            
     Small Government Solutions Direct Marketing $400
     Winning Edge International Telemarketing $240 (this appears to be Wayne Root's telemarketing house)

The Barr campaign spent almost twice as much on office rent  -- over $100,000 -- as on general advertising, and that does not include office furniture:

Real Estate Rent
      The Paces Foundation, Inc Rent and Utilities $55,769.4
      Post Corporate Apartments $33302.29
      Lisa Franzman $13757.23
      Mansour Center $6819
      Electric, INC Building Repairs $2175

Office furniture? Now we come to office furniture and supplies.  There's also some office equipment hiding on the electronics entries, at which point the office furniture spending nearly matched the spending on advertising.

Office Furniture
    Aaron Rents...$32220.7, of which $3392.27
has been refunded, plus $835.28 for "furniture".
    Office Equipment 6766.73
    Office Supplies $8272.14.

Targeted outreach was done via electronic and direct mail efforts.  The electronic efforts included over $130,000 in spending (in addition, Terra Eclipse is owed another thirty-five thousand and change), including

Electronics
      Terra Eclipse IT and Transaction Fees $68,644.86
      Thru Tech IT and office equipment $36,486.31
       Campaigner Pro (software) $14,242.74
       RackSpace IT $6370.49
       Cbeyond Communications (telephone) $4091.06
       AT&T Mobility (cell, telephone) $2698.15
       Salesforce Software $2,655
       Charter (cable/internet) $2236.55
       Verizon Cell Phone $546.86
       Dell Computers Computer Monitor  240.44   
       Comcast (cable/internet) $46.26

Direct mail is a fundraising tool; it also serves  to frame issues.  Mailing and shipping also puts your materials in front of people.  Here is the mailing effort, nearly $200,000 of it:

Mailing and items:
     Gillis Express (Mailing Direct Marketing) $39723.14
     All Points Packaging $35649.69
     Press Well Services Direct Marketing $26220.18
     MDI Imaging & Mail Direct Marketing $16130.75
     USPS Postage $15,166.21
     List Services Corp.  Direct Marketing $13,757.23
     Schlesman Enterprises Direct Marketing $12,857.71
     Integram (Direct Marketing) $12,513.35
     Positive Press Direct Marketing, Printing $12,028.37
     UPS Shipping $7492.6 with a $288.25 refund
     FedEx (shipping) 5349.13
     Direct Mail Processors (Direct Marketing) $2503.42
     Sir Speedy Printing Centers Printing $1492.93
     Milner, Inc printing $1100
     Daily Printing & Graphics $795.5
     NextDay Flyers Printing $717.26
     C & E Printing $442.4
     Small Government Solutions Direct Marketing $400

Those mailings were went to mailing lists.  Here are the places from which lists were rented:
      Basic Media, Inc. $2000 <-- Ron Paul right wing list
      Deiner Consultants $2400 <--conservative Christian mailing lists; apparently advises the Minuteman Civil Defense Corps (say internet searches)
      Capitol Hill Lists $838.32 <--conservative political mailers, says their web site
      C&P Lists $235 <almost no info available on this Asheville, N.C. operation)<br> The candidate went to Denver to receive the nomination.  Denver Convention  Booth/registrations $2761

More than $40,000 was spent on legal services, including:
     McKenna Long & Aldridge $16,931 (and $38,000 owed)
     Orrin Grover $6000
     State Ballot Access Fees $5750
     James Linger $5350
     Drew Shirley $5015.31
     Samuel Stretton $3200
     Matthew Sawyer $2262.5
     Varallo Incorporated Court Transcripts $977.83
     Robert Karwin $350

It costs money to collect money.   $34,000, under 3% of funds received, spent on various types of transaction expenses:
Transaction Fees
   PayPal $29,147.33
   Visa/MC Merchant Account 3999.18
   American Express: $482.76
   Donor Town Square $425
   CentraBank $308.31
   Georgian Bank $286.75

Finally, you can send the candidate out on the hustings, where he can give speeches, excite the faithful, and support local candidates.  Travel money and events came to a quarter of a million dollars, close to five times what was spent on advertising.

Oh, yes, a funny thing happened on the way to the FEC.  In earlier reports, payments to limousine companies are categorized as "limo services", but in later reports, they are equally legitimately categorized as 'travel expenses'.

Travel Expenses $206,583
Limo Services $38,106.82 <-- we sorted out the limo and town car companies
Events $15,738.48
Meeting Expenses $10,855.41
Thrifty Rental Car $1097.73
Citizen Outreach (conservative event) $2500
Freedom Festival (conservative event)  $1250

The above list of numbers do not include the following campaign debts as seen in FEC filings at campaign's end.

James Bovard $47,000.00 Authoring Fee
McKenna Long & Aldridge $38,414.69 Legal Fees    
Terra Eclipse  $35,566.87 IT
Russ Verney $15,000.00 Political Consulting     
Doug Bandow $6,466.05 Political Consulting
Dr. Robert B. Stuber $4,000.00 Fundraising Consulting    
Mr. Steve Sinton $4,000.00 Political Consulting
Wayne Allen Root $3,297.81 Campaign Expenses
Campaigner Pro $2,675.00 Software    
All Points Packaging & Distribution, In  $1,149.42 Online Order Fulfillment    
Press Well Services, Inc. $878.06 Printing        
Lisa Franzman $802.77 Rent

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