Andrew Sullivan
Star musicians and your favourite Times writers at the Albert Hall
Last Tuesday night, as the results from Kentucky and Oregon gave both the Clinton and the Obama campaign something to feel good about, another statistic blipped up on the television. In April the Obama team had raised a further $31m (£15.8m) for its campaign. The Clintons managed $20m - and the broader financial picture was even grimmer for Hillary.
Barack Obama now has close to $38m cash in hand for the remaining campaign, compared with Clinton’s $6m. And her debts amount to $10m, not counting the $11m she lent herself. His debts are only $2m.
How did this happen? The Clintons are the biggest name in the Democratic party. Their campaign chairman, Terry McAuliffe, was once chairman of the party. In December, when Clinton was the favourite, she was able to use that leverage to persuade most big donors to go with her. She had star power and a pitch designed to appeal to Hollywood (the first female president) and to New York (she was its senator).
There is only one real answer to Obama’s financial success: the internet. What Howard Dean, a previous candidate for the Democratic presidential nomination, presaged in 2004 - when he raised $27m online for his campaign - has come to fruition only four years later with a candidate who is primed to take advantage of web power and a generation that is now used to relating, thinking, talking and meeting online.
It was one of Clinton’s many huge errors that she bypassed Silicon Valley’s fundraisers in favour of more traditional areas of Democratic support. And she missed the key element of the new politics: social networking. She was still AOL; Obama was Facebook. Clinton was the PC; Obama was a Mac.
As Peter Leyden of the New Politics Institute, an influential California think tank, says: “What’s amazing is that Hillary built the best campaign that has ever been done in Democratic politics on the old model – she raised more money than anyone before her, she locked down all the party stalwarts, she assembled an all-star team of consultants and she really mastered this top-down, command-and-control type of outfit. And yet she’s getting beaten by this political start-up that is essentially a totally different model of the new politics.”
The new model really began thanks to John McCain. His 2002 campaign-finance law ended the era of a few big donors funding party politics. The maximum legal amount of any individual donation became $2,000 in 2004 and $2,300 in this election cycle. And so the key to raising money was getting people to “bundle” together as many friends and colleagues as possible to contribute the maximum of $2,300 each.
That’s how George W Bush did it – with his “pioneers” and “rangers”: friends and supporters who could corral dozens or hundreds of friends to pitch in. The usual means were living-room fundraisers and barbecues and phone trees, often involving the candidate himself or a surrogate.
But the Obama team realised that online social networking made such physical fundraisers redundant; and it also realised that a much better point of entry wasn’t $2,300 but less than one-tenth of that: $200. It transformed its website into a social networking zone, and its appeal to the young made this strategy viral.
Last month’s $31m haul – almost all of it accrued online – is all the more impressive when you discover that 94% of it came in sums of $200 or less. A million little donors became the model.
One of the men Obama hired to set up this new effort certainly knew what he was doing: Chris Hughes is a co-founder of Facebook.
When you hear Hillary Clinton call Obama an elitist, the flood of small donations is worth remembering. Obama’s campaign has in fact been the least elitist and most democratic fundraising operation in the history of American politics. He has more than 1.5m individual donors, who come with their own e-mail address books and social networks. And since most have not donated anything like the maximum amount, he doesn’t just have a list of names to thank; he has a huge list of names to ask for more. This is a money machine unlike any other.
Joshua Green, whose definitive report on Obama’s strategy appears in the latest issue of The Atlantic magazine, points out something else: “During the month of February, for example, his campaign raised a record-set-ting $55m – $45m of it over the internet – without the candidate himself hosting a single fundraiser.”
That’s another staggering benefit of this kind of open-source, web-based operation: the personal drain on a candidate is lessened. He can spend less time at rubber-chicken dinners, fewer soul-sapping hours begging for cash on the phone, less time schmoozing possibly cheesy characters (remember how much trouble Al Gore got into in 2000?) and more time honing speeches, working on policy, engaging the media.
Obama’s trademark mass rallies must also be seen in this context. They aren’t just media draws. Everyone who wanted to get into the 75,000-strong rally in Portland, Oregon, last weekend had to provide an e-mail address.
By the time they came home from the event, an e-mail was waiting for them, asking them for money or for referrals to other friends, and encouraging them to form “affinity groups” to spread the network wider and wider.
It’s a new form of politics; it is likely to last beyond the Obama campaign and to change the shape of all campaigns to come. For Obama the new method was also bang on message. His liberalism is not a top-down, managerial variety; it’s more in line with progressive traditions of self-empowerment. A social network was the perfect medium.
I have seen this for myself. This spring, many friends who had never previously been interested in politics suddenly told me about their Obama fundraisers. I was stunned by their activism. No one had asked them. They were arranging the parties or performances or gatherings through Facebook and MySpace, without any formal leadership from Obama headquarters.
Just as Obama’s most famous web videos were never commissioned by the candidate – they were created and disseminated spontaneously online – so his fundraising began to take on a life of its own. The only other candidate who managed to inspire such energy was the maverick Republican Ron Paul. His message was not unlike Obama’s: self-empowered, antiestablishment, next-generation.
There is no question in my mind that this is the future of political organisation and fundraising.
The strongest criticism of Obama is his lack of substantive achievements in public life. He is a freshman senator, and his record is indeed thin in comparison with that of McCain or Clinton. However, if his abilities in government are in any way similar to the skills he has shown in managing – and brilliantly not managing – his campaign, then this is a candidate not to be underestimated. Clinton has been sideswiped. And, privately, most Republicans I know are terrified.
Maybe Obama’s model is a little before its time. If not, the online president of social-networking democracy is imminent. And his URL is My.BarackObama.com .

Andrew Sullivan is an author, academic and journalist. He holds a PhD from Harvard in political science, and is a former editor of The New Republic. His 1995 book, Virtually Normal: An Argument About Homosexuality, became one of the best-selling books on gay rights. He has been a regular columnist for The Sunday Times since the 1990s, and also writes for Time and other publications.
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Thank you for thoughtfully including mention of antiwar GOP Congressman Ron Paul's phenomenal internet-wise campaign, as well. Orchestrated by individuals not even connected to his campaign, Paul twice set all time single-day US fundraising records with small individual donations in excess of $5M.
Steve Richardson, Hillsborough, N Carolina, USA
It is time to do a follow-up on this article. Despite the revolution in "bottom-up" politics, money still corrupts. Delgates can be bought, and party members intimidated. Let us hope that our internet superstars are all benevolent, moral characters who do not abuse the fanaticism of their follower
Ellen, Honolulu, Hawaii
And now the truth in your article has revealed itself beyond a shadow of doubt. Obama is the Demo Candidate. We are witness to the new politics of the 21st Century. Lucky we, generations later, they will talk of how the changes in the first quarter of the 21st century shaped the world. Viva Obama.
Kamau wa Moi, Nyalenda Village, Kitui
overrated and far too expensive?
Chris, St. Gallen, CH
Hi,
Mrs Clinton was a PC; Mr. Obama a Mac and Mr. McCain a Unix Workstation ? What ever platform you take very offend they all sometimes do not work.
Regards Dr. Terence Hale
Terence Hale, zandvoort, Holland
The Mac was supposedly the "original", hailed by insiders as the better product, and has a small hardcore of devotees.
The PC won the mass- market, through using better marketing and a winning business model.
Still sure this analogy is one you want to push.....?
Nick, France,
And Gordon is Watt's steam engine.
Jake, Dumfries, UK
David, I couldnt agree more. The PC/Mac analogy really rankles with me too. Surely a Walkman/Ipod analogy would have fit much better, as they both fit their eras perfectly but only one is suitable for the Noughties. Love the tagline - A million little donors - though, beautifully succinct.
Stephen, manchester, UK
I agree with harrison, Obama has shown a brilliance that defies the ordinary imaginations of the other two. We need this sort of thing and I am not a bit worried about most of clinton's voters. With a choice of Obama or 4 more years with the same type of nonsense we've had, it will be Obama.
Marty Price, Oakland, United States
The beauty of contributing to Obama's campaign online is that it gives donors a stake in his success. Small donors feel passionate about advancing his campaign. They are investing in a great cause. They want him to succeed. They do all they can to help. It is exhilarating to see him succeed.
Elizabeth Tsai, Palo Alto, USA
Unfortunately, the downside of the internet model is how easy it is to initiate a smear and have it spread with no accountability. Predictably, the Republican right wing nutcakes have used the net to spread viral negative rumors about Obama. Fortunately, its intended audience doesn't use the net.
McHenry, Los Angeles, USA
The truth is the average of Barack Obama's contributions is just under $100USD. People are giving of their own hard-earned money and that is why he has been able to raise so much.
The Clintons have the big-ticket dinner fundraisers and still they can't get any $$.
That says more than you know
Holli B, AA, MI, USA
Andrew's PC/Mac analogy it better than some of the comments suggest. The Mac is easier to use, runs Windows and Window apps if you wish, has fewer viruses, and simply works as it should.
Most older folks, like PC users who comment on the Mac, simply don't "get" Obama.
Tom Parrish, Phoenix, USA
I can't help but feel Obama has made a rod for his own back. Mob rule is not democracy. Oh, and fantastic article, such a refreshing change to read an informative piece for once.
Pam, Reading, UK
The managerial dexterity exuded so far is an unambiguous indicator of a scientific governmental competence to expect from President Barack Obama.
He has practically proved that experience may be relevant but creativity is pivotal. And whenever a contest arises between the two the latter wins.
Obe Razaq, Lagos, Nigeria
The book Freakanomics made some interesting findings regarding donations. They found that the more money a candidate had didn't help them to win, but that the candidate who was going to win raised more money. People got on the winning side and were more motivated to donate.
Shane Guevara, kilcock, Ireland
It cannot be more succinctly said, and brilliantly not managing . Managers are desirable but leaders are indispensable.
A leader would make a good president.
Oladeji N. Gabisi, Hamilton, Bermuda
As 72 year old white male building website for a 50th reunion, www.harvard1958.com, I am convinced that Barack Obama is "in touch" with the future: Web 2.0, Cloud Computing, SaaS, PaaS, Subscription Services Business Models, Multi-Tenancy, On-Demand, Social Networking, Collaboration, Transparency.
Charles Atkinson, Cambridge, USA
Wow. You've got to love American democracy. Whoever raises the most money wins. Very fair.
Sarah , Belfast,
We'll let the naysayers have their say. But their cynicism will not deter us.
It is time for change in America and its leardership in the world, and Obama is the apostle of that change.
GO OBAMA 08!
DAVID, Antioch, USA
Obama is winning the fundraising wars because of demographics: affluent liberals are FAR more likely to contribute to campaigns (even with very small donations) than their working class cousins. US law has basically handed over financial control of the Democratic party to its upscale branch.
Jasper, Boston, USA
This 'new model' of campaigning and politics is very much the modus operandi of our new prime minister in Australia, Kevin Rudd. He blitzed the existing government last year with a modern, social-networking style campaign. This pro-active style has carried over into his leadership, with good results
Glenn Davey, Airlie Beach, Australia
when mac's have an error it says "it's not my fault"
how many times will he say this when he fails to deliver what he as said he will
knight, aberdeen, uk
this just gives one an insight into the potential of the power of the internet,also the dangers for malign influence to spread through society.
Eddy, Bury St.Edmunds, uk
A very very good article. Thanks. We obviously have a great deal to learn.
Chris Jones, Llandeilo, Wales
What else is (in modern times) the use of running primaries AND another tiring election campaign against the ohter partiy, if not to show your abilities to organize and lead.
Obama has done this amazingly well! Clinton's debts and McCain's poorly done bus-tour highlight Obama's superb campaign!
klaas könig, Heidenheim, Germany
Good for Obama, hope he'll prove that cappable against Republicans. In fact, he has this cult feel around him and certain edginess. Very elegant and immensely likable. Actually, he apperas very "genuine", that's probably his biggest strength & the main appeal. He looks decisively trustworthy.
Pam, St.Petersburg,
thanks for such an insightful article of how the old gets knocked out by the new and although he's got less 'old' street cred, the new street cred of young, old, black, white, staunch die-hards and even people globally can see there's a need for change in good 'old' America.
Olusola Muhammad, Windsor, UK
Of course Obama is master of the facebook politics. that's all he is - face, image, style. we have been down that road with Blair and look where it got us. if the millions of American voters will vote for someone who has yet to say anything serious about world politics, they deserve what they get.
John Bull, Wolverhampton,
Quick question, how many people use Macs as opposed to PCs? Macs may be cooler and used extensively in the 'meeja' but, if you want something that is popular and works well in the real world, PC is still the main instinctive choice. Perhaps the comparison with Obama is far closer than you intended.
David Townsend, Kabul,
You've hit several nails on the head - again - Andrew! What's more, the Obama network stretches beyond the borders of the United States! I am a U.S. citizen living in England, and I have and will continue to contribute to OUR campaign. See, there's your difference. We OWN this campaign & movement!
Jimmy C, Letchworth Garden City, UK
Wonderful piece!
Parthi Kandavel, Scarborough, Canada
Its time for Hillary to quit sending codes to kill Obama
We must talk to foreign countries Even Iran president when speaking at Columbia welcomed students to visit Irans colleges. Adali Stevenson said "It is easier to declare war than negotiate" Time to change the page-we are sick of old ways
Evelyn Peppler, Longmont, Boulder
Great article. What the hell did they all think 'change' meant?
John Carty, Medellin, Colombia
In the American news cycle the story reads that HRC lost this nomination. Closer to the truth is that Obama WON this nomination. The distinction is slight to those accustomed to racially slanted reporting, but it is a huge difference. Obama out managed, out fundraised, out manuvered Hillary.
tressie, charlotte, usa
speaking of internet miracles: here i am, lost in the swamps of the mississippi river valley, sending instantaneous messages to britain's most famous newspaper.
one reason clinton has done so poorly is that her claims of experience are so downright false. she's never succeeded at anything herself.
tommy jonq, carbondale, usa
well, he's younger and he is tuned into something different. Thankfully. It is definitely more viable to networking a huge country such as the U.S.A.
Shannon, Seattle, USA
One way of matching up Clinton, McCain and Obama to see how they would perform as presidents is to compare how each of them has run their campaigns: Obama's has been a brilliantly run campaign. I believe he has shown us that he is much smarter and has a better judgment than the other two.
Harrison, Woburn, U.S.