how-to Archives - Power Sponsorship

How Much Should You Budget for Sponsorship Leverage?

There has been a fair bit of chatter online about what the standard sponsorship leverage ratio should be. That is, how much incremental money should you budget for your leverage program, as a ratio to the sponsorship fee paid. People have offered up 1:1 (spend one dollar leveraging for every dollar spent on a sponsorship fee), 2:1, and 3:1 in the discussions. If you pay attention to IEG, you’ll know they recently reported an average leverage spend of 1.4:1 in 2009. And there are plenty of that media hail big leverage spenders as being at the vanguard of sponsorship. I disagree with all of that. Vehemently. Spending that much, incrementally, flies in the face of […] Read More

What Should You Do When Your Board Sets Unrealistic Sponsorship Targets?

If you’re a sponsorship seeker, at least one of these will sound familiar: Your organisation is planning an expansion or other costly activity, so your board increases your sponsorship target, or Your government funding is cut, so your board increases your sponsorship target, or Your donations have dropped, so your board increases your sponsorship target, or Your attendance has dropped, so your board increases your sponsorship target, or One of your competitors scores a big sponsorship, so your board increases your sponsorship target We have all been in this position at one time or another, but the current economic situation has everyone under pressure, and when many boards don’t understand how sponsorship works, and that sponsors […] Read More

Sponsorship Seekers Who Bully

I’ve blogged about Sponzillas – sponsors who bully – and in the spirit of fairness, I need to say that there are also some bullies on the other side of the equation. There is an echelon of very desirable properties that can – and sometimes do – bully potential sponsors. They know that if that sponsor doesn’t pay the money for whatever is on offer, someone else will. They offer standard, uninspired packages and refuse to offer anything creative, even if specifically requested by a potential sponsor. In their boldest manoeuvre, they may charge additional fees for bolt-on “benefits” that really only benefit the property. An example would be if an elite sports property required sponsorship […] Read More

Sponzillas: How to Deal with a Sponsor Who Bullies

In most places around the world, the sponsorship industry has recovered from its slowdown. Sponsors have largely rationalised their portfolios and become more strategic in how they make new investments. Sponsorship seekers are, out of necessity, having to raise their games to have any chance at gaining new sponsors. Seekers who are doing a great job are, by and large, doing great. Sponsorship seekers who aren’t are still wondering when the market will recover and their job gets harder every day. What I have heard more about in this past few years is sponsors bullying sponsorship seekers. My always busy inbox has been overflowing with dismayed sponsees caught in no-win situations: “Our biggest sponsor wants […] Read More

Six Signs a Sponsor is Just Not That into You

Okay, so I’m sitting on the couch watching the fun chick-flick, “He’s Just Not That Into You”. I’m loving it. Too rare. As usual, I can’t stop thinking about sponsorship. So, I think to myself, there are a few signs that sponsorship seekers consistently miss that could tell them that a sponsor just isn’t that into them. So, brace yourself for the cold, hard truth about how to read the signs so you can let it go, and move on to something more fruitful. They tell you to “just send in a proposal” This is a sponsor saying “leave me alone”, without being rude. In actual fact, it’s unintentionally cruel, because it gets the sponsorship […] Read More

Action Plan: What to Do when a Big Sponsor Exits

This is the nightmare for much of our industry. I’m guessing some of you may develop a facial tic just thinking about it! And yet, it happens. Sponsorships end, and if it’s unexpected or done without a lot of lead-time, you need an action plan and you need one fast. So, it’s time to stop with the misery and crying in your beer. It’s time to stop with the wishful thinking and desultory casting about for ideas. It’s time for action, and I’ve got few steps to get you going. Get feedback If you didn’t see this coming, you’ve got to do an exit interview right now. Find out: What led to the decision? Whether […] Read More

Can We Target Multiple Sponsors at the Same Time?

This is a question I get at least a couple of times a week. Generally, it refers to approaching multiple sponsors in the same category – ice cream, insurance, sporting goods, etc – at the same time. Sometimes, the question is about a naming rights sponsorship, and whether they can approach multiple sponsors in any category for naming rights at the same time. My answer to all of those is “yes”. It is totally reasonable to approach multiple sponsors at the same time. In fact, it’s usually the most realistic approach. Your sponsorship sales window is only so long, and it can take sponsors weeks or months to make a decision. Waiting for one bank […] Read More

How to Hire a Corporate Sponsorship Consultant

Sponsorship consultants are a dime a dozen – I’m one – but we are far from a homogenous group. When it comes to hiring one to assist with your sponsorship program, do you know how to get what you’re looking for? I’ve written this blog to assist both sponsors and sponsorship seekers to find the right person or agency for their needs. If you get what you’re looking for, you’ll fit together like peas in a pod. If not, it will be more like peas in a blender, and no one wants that. I’m not including sponsorship brokers in this blog, as that’s really a different type of consulting altogether – selling, largely on commission. […] Read More

What You Need Before You Seek Sponsorship

“I want to know how you can help me get sponsorship.” That’s it. No “hello”, no name, nothing – just one sentence sent from a Hotmail address referencing what I have to assume is the sender’s favourite cocktail, and closed out with a “Sent from iPhone” message at the bottom. I get that kind of email all the time, so normally I wouldn’t be so irritated, but this particular one followed hot on the heels of my third email from a guy insisting that his great idea for an event should be all that’s required to get sponsorship, and once he got the money, he’d do all the “admin”. Yeah, good luck with that. What […] Read More

Negotiating and Managing Multi-Brand Sponsorship

I tell sponsorship seekers all the time, “Don’t approach the company, approach the brand”. The underlying principle is that companies will generally have one brand that is clearly the best fit for a sponsorship opportunity. This is true for sponsors, as well, and most sponsors have embraced brand sponsorship as the default position for investment. There are, of course, a couple of exceptions. The first is when a sponsorship creates a platform that is large, relevant, and flexible enough that it can be leveraged across an entire portfolio of brands. An example would be if Kellogg’s sponsored the World Cup. They could make that work across their brand portfolio and most, if not all, regions. […] Read More