sponsorship pricing Archives - Power Sponsorship

Should You Have Opt-Out Clauses in your Sponsorship Contracts?

I was recently involved in a debate about whether multi-year contracts are preferable to year-to-year deals. I make no bones about my preference for multi-year deals (in most cases), but there was a compromise suggestion put forward that had me, frankly, gobsmacked. One sponsorship seeker said that their standard contract was for three years, with an annual review, where the sponsor could opt out of the rest of the contract. Several others chimed in saying that either sounded like a great idea or that they were doing that now. Ummm… not to put too fine a point on it, but how is that any different than a year-to-year contract, functionally? If a sponsor can just […] Read More

Should a Sponsor Pay for Extended Benefits?

You’re a sponsor. You sponsor a team that has just got into the finals/playoffs. The team enacts the contract clause that states you either have to pay additional money to extend your sponsorship benefits through the finals, or they will withdraw benefits (cover your signage, withdraw ticket and hospitality privileges, etc) until after the season. This is fair, right? I mean, you did sign a contract with those provisions, so it’s not like they sprung this on you. What if you’ve stuck with that team through eight dismal seasons in a row, falling fan numbers, television coverage down the gurgler, and half-empty corporate boxes because your customers aren’t that interested in seeing the team lose […] Read More

23+ Proposal Development Resources for Sponsorship Seekers (Updated)

Before you can even think of making a sale to a sponsor, you need to develop an offer and a proposal that is compelling – that meets their needs, showcases your partnership orientation, and stands out from the stack of other proposals they receive. There are a lot of resources on this website that will help you to develop those offers. In this blog, I’ve distilled it down to the most important ones. It’s probably 90 minutes of reading/viewing, but there is no question it will affect your approach in one way or another. If you like any of these, I encourage you to share them on Twitter, LinkedIn, Facebook, or whatever social media you […] Read More

27+ Sponsorship Sales Resources for Sponsorship Seekers (Updated)

Sponsorship sales are tricky. Even if your offer is perfectly crafted, getting the proposal looking good, to the right person, talking their language, and closing the deal can be a minefield. This blog is full of resources for sponsorship sellers. I’ve now distilled some of the most critical information into this blog. It’s probably 90 minutes of reading/viewing, but I’m sure it will change the way you sell sponsorship for the better! If you like any of these, I encourage you to share them on Twitter, LinkedIn, Facebook, or whatever social media you prefer. Let’s spread the word! Recommended blogs The First Sponsor Meeting (And How Not to Make an Idiot of Yourself) Can We […] Read More

Corporate Sponsorship SAQ (Should-Ask Questions)

A few months ago, I wrote a blog entitled “Asking the wrong questions: Sponsorship by the numbers”. Ever since, I have had a steady stream of people requesting the questions sponsorship professionals should ask. So, I’ve now done a sponsorship SAQ (should-ask questions) for both sponsors and sponsorship seekers, covering the most important questions our industry tend to ignore. Questions sponsors should ask, but usually don’t… Why are we sponsoring this? Why are we sponsoring anything? This is THE big question, and while many sponsors do ask it, most don’t really dig for the answer. If you answer this question with anything having to do with the sponsorship itself, you’ve got it wrong. You aren’t […] Read More

20 Pieces of Corporate Sponsorship Advice – 140 Characters at a Time

I can admit it – I’m a little verbose. I like words and I love writing, so short little posts have never been my strong suit. Twitter… well, that’s been a whole new challenge! When people ask for my advice on Twitter, I always struggle to respond in just 140 characters. Today, I’m in the mood for a challenge, so I’m going to provide twenty pieces of corporate sponsorship advice, no more than 140 characters at a time. (Jeez, I can’t even explain what I’m doing in 140 characters, so this should be interesting!) By the way, if you feel like retweeting one of these bite-sized tidbits, my Twitter name is @KimSkildumReid. Concise advice for […] Read More

Is Naming Rights Sponsorship Worth the Money?

I’ve had this question a few times lately. More often than not, it’s a brand manager who asks the question, after a senior executive has indicated interest in a major naming rights. That right there raises a red flag for me, as when the idea for a big naming rights comes from the top, it is – more often than not – corporate ego talking. There are some compelling reasons why naming rights sponsorship is worth the money. There are also some big pitfalls. First and foremost, naming rights sponsorship gives you a dominant platform for leverage. No one else in the sponsorship roster will have access to what you do. No other sponsor will […] Read More

Sponsees Charging Leverage Fees? It’s All Smoke and Mirrors!

I think this industry has definitely arrived at the point where sponsors know it is their responsibility – not the sponsee’s – to leverage their investments. Sponsors, for the most part, understand that when they invest in sponsorship, they are investing in opportunity, not results, and that they need to leverage the opportunity to get result So, what is with so many sponsorship seekers – big sponsorship seekers who should be sophisticated enough to know better – charging “leverage fees” or “activation fees” on top of the cost of sponsorship? What exactly is that for? And how is it not just a way to inflate the fee while deluding the sponsor into thinking they’re getting […] Read More

Valuing Contra vs Cash Sponsorship

How to value contra, otherwise known as in-kind, sponsorship is a question I get almost every day. What is most interesting is how differently sponsors and sponsorship seekers view contra, and they both overcomplicate what is really quite a simple equation. Sponsorship seekers take contra for granted. Well, okay… most sponsorship seekers take contra for granted. The attitude is, “those airline seats would be empty anyway, so why do we have to put a value on them?” Newsflash: If you didn’t get those seats through contra, you would have to pay someone for them, so they do have value. I also hear a lot of sponsorship seekers complaining that their contra sponsors expect as much […] Read More

Sponsorship Pricing Basics

I get more questions about sponsorship pricing than any other aspect of sponsorship. I wish there were an easy answer – a magic wand I could wave – that would make the right number appear out of thin air, but I’m afraid it’s just not that simple. That said, it’s not rocket science, either, and there are some definite rights and wrongs. Getting sponsorship pricing wrong First off, don’t try to add up the value of each of the benefits, as sponsorship really is a case of the whole being worth more than the sum of the parts. You’re not selling benefits, you’re selling marketing opportunity, and a comprehensive opportunity is going to provide a […] Read More