sponsorship negotiation Archives - Power Sponsorship

Is First Right of Refusal the Sponsorship Equivalent of a Ball and Chain?

First right of refusal is a valuable defensive benefit for a sponsor, guaranteeing them the opportunity to review and take up a new sponsorship at the end of the contract, before it’s offered to a competitor. The parties involved often assume that means it needs to be a similar offer to the one currently contracted – no matter how under-priced or badly structured it may be, or inappropriate it has become – making first right of refusal the sponsorship equivalent of a ball and chain. Thankfully, that’s not actually true, and you don’t have to live forever with a portfolio full of sponsorship mistakes. There are instances where you do have to offer a continuation […] Read More

How Do You Get a Fire-Sale Sponsor to Renew at a Realistic Level?

You shouldn’t have. You know you shouldn’t have. But you did. You sold a sponsorship at way below market value because time was getting short and so was your budget. Most sponsors won’t take up a fire-sale sponsorship. They know that their results come not from the sponsorship itself, but from the leverage they do around it. That takes time, so they don’t invest when they don’t have enough time – no matter how cheap. The sponsors who do take up fire-sale sponsors tend not to be very sophisticated and they expect the property to deliver their results, and can be some of the worst sponzillas around. That’s not the worst outcome of a fire-sale […] Read More

Introducing The Sponsorship Seeker’s Toolkit Fourth Edition!

If you follow this blog or my social media stuff at all, you know that a lot of the past year has been about writing and production of the Fourth Edition of the industry bestseller, The Sponsorship Seeker’s Toolkit. What started as an intended 20% rewrite quickly blew out to about 50%, with lots of new content on social media, new tools and techniques, and dozens upon dozens of amazing new case studies of sponsorship being done as well as it can be done. Whew! It’s now available through Amazon worldwide, as well as many other booksellers. You’ll notice a huge variation in price, so do shop around. In some regions, buying from Amazon and […] Read More

Sponsorship Benefits Every Sponsor Should Want

Sponsorship is an amazingly creative medium. Unfortunately, most sponsors still lack the imagination to really harness it. Either that or they are so deep in a rut that they can’t even see they’re going in the wrong direction. They negotiate the same types of sponsorship, and for the same boring benefits, over and over again. They buy logos and tickets and stock-standard hospitality, with the overriding assumption – and point of comparison – that it’s largely a commodity business and more is better. WRONG! Go ahead and negotiate some of those commodity benefits, but understand that’s not where your real marketing opportunity lays. Instead, concentrate your efforts on getting the type of benefit that can […] 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

The Bear Grylls Guide to Sponsorship Renewals

A few years ago, when Bear Grylls took over from Mike Rowe as my favourite Discovery Channel hunk, I never thought I’d see the day that Man vs Wild would be gone. It is, but I think we can all agree that we’ve learned a lot: Colourful caterpillars are poisonous; pull the stingers off scorpions before you eat them; and it is possible (though unpleasant) to sleep inside of a camel carcass. What we would have also noticed is that no matter where he is, there is a process he goes through to get himself safely back to civilisation. That process, as it happens, very closely mirrors the process for renewing a sponsor. So, with […] Read More

How to Right-Size Your Sponsorship Leverage Activities

Any regular reader of this blog knows that I talk a lot about sponsorship being win-win-win. That third win is for the target markets, with the goal being small, meaningful benefits for all or most of the market, not a chance to go into a draw for one person to win one big prize. The question is, then, what do you do with benefits or leverage activities that are, by their very nature, limited in size? How do you make that a win for everyone… and should you even try? As usual, I’ve got a few tricks up my sleeve! Know how the third win works Providing that third win is about adding real value to a […] Read More

Sponsors: 4 Renewal Strategies for Getting the Most from Your Partners

You’ve been sponsoring a property for a while and renewal time is coming up. Sometimes, what you need to do is a no-brainer; the experience was either so great or so bad, you know whether to renew or walk away. Not this time, though. You value the opportunity, and may have even achieved great results, but the experience of being a sponsor hasn’t been great. Some of the typical scenarios include: They promised the world and failed to deliver. They played fast and loose with the contract or hit you with extra fees whenever they could. Their lack of flexibility or vision meant you couldn’t mount a leverage strategy that would have been good for […] Read More

Lance Armstrong and the Future of Sponsorship

Like the rest of the world, I just finished watching Oprah’s interview with Lance Armstrong. And like the rest of the world, the revelation that he’s a cheat came as no real surprise. What was surprising was how utterly devoid of contrition it was. One of the alarmingly few emotional moments was when he talked about his sponsors and “losing $75 million in one day”. We weren’t watching a heartfelt confession; we were watching Sociopathy 101**. Although there is a temptation to plunge headlong into an analysis of the interview itself, I’m going to try to control myself. Honestly, the whole thing has been analysed to death. What I’m going to address is what it […] Read More

Can Sponsors Help Teams Sell Tickets?

That was the question I had to address at a conference last week. My opinion? Of course sponsors can help teams sell tickets! Great sponsors are not only adding value to the event experience, but they’re engendering advocacy for that experience – both critical factors for developing and growing an audience. That said, I think most teams who want to go down this track are setting themselves up for failure. There are three key reasons: Teams have a tradition of selling out their audience Let’s be honest here. More often than not, teams are happy to put a price tag on all manner of intrusive, disrespectful sponsorship “benefits”. You want to scream at our fans […] Read More