Deposits for the Future

The “Company Profile” is an Earth911.com series highlighting consumer goods and services making a difference through product stewardship and recycling. Products and services featured do not pay for placement and are not endorsed by Earth911.com.

Of course recycling and reusing as much as possible is the right thing to do, but would more people recycle if they got paid to do it?

There is certainly plenty of money to be made from processing recyclable materials into new goods and keeping them out of the landfills, but individuals usually do not reap monetary benefits, even though they are often the ones at the top of the waste stream.

When Ron Gonen started RecycleBank, he sought to shift this paradigm by creating a system that recorded and rewarded individuals for the amount they recycled. We recently spoke with Gonen, RecycleBank’s CEO, to learn more about his innovative business model and plans for the future.

Less in the Landfill = More Money in People’s Pockets

RecycleBank’s effective system is simple, profitable and offers tangible incentives for individuals. Here is how it works:

• A single stream RecycleBank recycling cart is dropped off at residences in participating municipalities.
• Each RecycleBank cart is equipped with a computer chip that weighs and records the amount of recyclables being recycled each week by each residence.
• Recyclables are taken to materials recovery facilities to be sorted and then sent to appropriate processing facilities to be made into new products.
• The amount of recycled materials is tallied and converted into RecycleBank Points that are worth up to $400 of reward value per year.   Residents can use these points at over 400 national and local businesses including Bed Bath and Beyond, 1-800-Flowers and Rite Aid.

A Young Company With Promise

Gonen started RecycleBank while still in business school at Columbia University in New York in 2004. RecycleBank officially launched in 2005 and currently serves communities in the mid-Atlantic region, New England, Virginia and Nebraska.

The Rewards of Reuse

In most of the communities that have partnered with RecycleBank, rates of recycling participation have more than doubled, which equals a huge savings in landfill disposal fees, petroleum and energy. Gonen hopes that increased recycling is just the beginning of environmental awareness for its participants. “We want people to understand the economic benefit that they are getting from recycling, and that our model will help people look at other things like taking public transportation, riding bikes and buying renewable energy such as wind power,” he said.

Increased Consumer Involvement

Thanks to customers’ demand for more ways to recycle and an increasing market for recyclables as commodities, waste haulers have become more proactive about providing systems for recycling. According the Gonen, “The haulers are becoming much more focused on recycling because they know the customers understand the importance of such programs and want to participate in them.”

RecycleBank’s business depends on consumer recycling. If there is no access to a RecycleBank program in your community, you can encourage your local political leaders to establish a program with the company.

Because We Are All in This Together

Gonen takes great pride in the fact that he has created a company that is beneficial for the environment, the community and his employees. “I have started a business that is not just about making money,” he said.  ”It is also providing a social value and benefit to communities, and it makes me feel good personally when someone says ‘thanks for creating value for my family and home.’ It is also rewarding to see how hard the employees at RecycleBank are working to build a company that they feel is worthwhile.”

Continued Expansion

RecycleBank will be expanding into more states in the near future, and the company is partnering with several waste haulers to make this happen.

Favorite of the Three R’s

For a man who runs a company that depends on all three R’s (reduce, reuse and recycle), he was not about to choose a favorite. Gonen said, “That’s like asking a parent who his favorite kid is! They are all important because they can’t exist without the other, and there is no one solution when trying to create a shift towards better environmental practices.”